KATHMANDU: Tourism Minister Khadak Raj Paudel has expressed serious concern over the extreme mismanagement and financial state of Nepal Airlines.
Speaking during a meeting of the International Relations and Tourism Committee of the federal parliament, the minister emphasized the urgent need for comprehensive reforms in the national flag carrier’s operations.
Commenting on the airline’s poor performance, Paudel stated that if Nepal Airlines were a private entity, it would have already gone into liquidation.
He argued that simply acquiring new aircraft is not a solution for the airline’s recovery, stressing that the primary focus must be on improving overall institutional management. He pointed to recent technical issues with aircraft as evidence of managerial failure.
Recalling recent incidents where aircraft were grounded in Tokyo and Europe, the minister noted that such disruptions cause significant financial losses to the airline due to the costs associated with rebooking passengers and managing flight cancellations.
Paudel also criticized the lending policies of banks and financial institutions toward the airline. He expressed strong objection to the fact that while some entities receive loans at interest rates as low as 5 percent, the national flag carrier is being charged 10.5 percent.
He described this as discriminatory, stating that such high interest rates are further crippling the state-owned institution instead of providing the necessary support.
