Nepal Airlines
Nepal Airlines is Nepal’s state-owned flag carrier, providing domestic services and medium-haul international flights from Kathmandu. Former national airline of Nepal.
Last updated October 16, 2026
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Overview
Nepal Airlines, formally Nepal Airlines Corporation and formerly Royal Nepal Airlines Corporation, is Nepal’s flag carrier and the country’s oldest airline. Established in July 1958 with a single Douglas DC-3, the carrier was created to provide scheduled air links within Nepal and to nearby Indian cities. Its main base is Tribhuvan International Airport in Kathmandu, while domestic operations have also been associated with regional airports including Biratnagar, Nepalgunj and Pokhara. The airline’s early development reflected Nepal’s difficult terrain and its international political relationships. Pilatus Porter short-takeoff-and-landing aircraft were introduced in 1961, followed by Chinese-built Feng Shou-2 aircraft in 1963 and a Fokker F27 turboprop in 1966. These aircraft enabled services to remote mountain and hill communities as well as conventional domestic routes. The carrier also used helicopters and other aircraft obtained through leasing or foreign assistance. During the 1970s it entered the jet era with Hawker Siddeley HS 748 aircraft and Boeing 727s, while Twin Otters supported short domestic sectors. Royal Nepal Airlines expanded significantly during the growth of Nepal’s tourism economy. Boeing 757s gradually replaced the 727s from 1987, and the network reached destinations in South and East Asia and the Middle East. In the late 1980s the airline served dozens of domestic points and roughly ten international destinations, including Hong Kong, London, Dubai, Dhaka, Karachi and Bombay. It also cooperated with foreign airlines on selected services, including a Kathmandu–Frankfurt arrangement with Lufthansa and a Kathmandu–Lhasa service developed with China’s civil aviation authorities. In 1988–89 the airline reported substantial operating revenue and profit and was one of Nepal’s largest employers and sources of foreign currency. The company’s position weakened after Nepal liberalized its domestic aviation market in 1992. New private operators, including Necon Air, Cosmic Air, Everest Air, Buddha Air, Yeti Airlines and Sita Air, captured much of the domestic market. At the same time, the carrier faced allegations of political favoritism, procurement problems, debt, aging aircraft and management instability. A controversial lease of a Boeing 767 from Lauda Air in 2000 led to an investigation, the suspension of senior officials and the resignation of the tourism and civil aviation minister. Former chairman Ramagya Chaturvedi was later imprisoned for corruption. A proposed partial privatization and management transfer was discussed in 2004, but Nepal Airlines remained state-owned. Fleet renewal became a central strategy in the 2010s. The airline signed a memorandum of understanding for Airbus A320 aircraft in 2009, received a Chinese Xian MA-60 in 2014, and took delivery of Airbus A320s named Sagarmatha and Lumbini in 2015. The latter aircraft arrived with relief supplies for the response to the Nepal earthquake. Nepal Airlines subsequently acquired two Airbus A330-200 wide-body aircraft in 2018, intending to strengthen long-haul and medium-haul services to destinations such as Seoul, Tokyo and Sydney. Chinese MA60 and Harbin Y-12 aircraft were retired in 2020 after the airline determined that they were not well suited to Nepalese operations. The carrier also retired older Boeing 757 aircraft as it moved toward an Airbus-centered fleet. During the COVID-19 pandemic, scheduled services were grounded from March 2020, but Nepal Airlines operated rescue, evacuation and repatriation charter flights. The airline later continued domestic and international operations, although it has remained under financial, operational and safety pressure. Since 2013 it has been included on the European Union’s list of air carriers subject to an operating ban because of safety concerns. Nepal Airlines’ role remains strategically important: it connects Nepal’s tourism and migrant-worker markets with regional destinations and provides air access to remote domestic communities, while its state ownership and limited fleet constrain its competitiveness. During the COVID-19 pandemic, scheduled flights were suspended from March 2020, but Nepal Airlines operated rescue, evacuation and repatriation charters. The airline later continued domestic and international operations, although it still faces financial, operational and safety pressures. It has been on the European Union’s list of air carriers banned from operating in the EU since 2013 because of safety concerns. Nepal Airlines’ role remains strategically important: it connects Nepal’s tourism and migrant-worker markets with regional destinations and provides air services across difficult terrain.
History
Nepal Airlines was established in July 1958 as Royal Nepal Airlines Corporation, beginning operations with a Douglas DC-3. Its initial network linked Kathmandu with Simara, Pokhara and Indian cities including Patna, Calcutta and Delhi. Fleet expansion soon became closely connected to Nepal’s geography: Pilatus Porter aircraft arrived in 1961 for short and demanding airstrips, Chinese Feng Shou-2 aircraft followed in 1963, and a Fokker F27 turboprop was added in 1966. Helicopters and other aircraft were also used for charters and scheduled service to remote areas. The 1970s brought larger turboprops and jets. An HS 748 entered service in 1970, Twin Otters in 1971 and Boeing 727s in 1972. Boeing 757s began replacing the 727s in 1987. Tourism growth helped the carrier expand its international network, which by the late 1980s included destinations such as Hong Kong, London, Dubai, Dhaka, Karachi and Bombay. The airline also participated in cooperative services with international partners and helped connect Nepal to regional markets. At its peak in that period, it was a major employer and foreign-currency earner. Domestic aviation liberalization in 1992 sharply increased competition. Private airlines gained a large share of domestic traffic, while Nepal Airlines faced aging equipment, debt and governance problems. Allegations of favoritism and corruption became recurring features of its public history. The 2000 lease of a Boeing 767 from Lauda Air was particularly controversial because critics argued that the aircraft was unnecessary and that its effective hourly cost exceeded the contractual figure. The chairman and other executives were suspended during an investigation, and the responsible minister resigned. Former chairman Ramagya Chaturvedi was jailed for corruption in 2005. Plans to sell a minority stake and transfer management control to private investors were discussed but did not end state ownership. Renewal efforts intensified after 2009, when the carrier signed a memorandum of understanding for Airbus A320 aircraft. A Chinese MA-60 was delivered in 2014, and Airbus A320s named Sagarmatha and Lumbini arrived in 2015. The Lumbini delivery included earthquake-relief material. In 2016 an aging Boeing 757 was retired, and in 2017 the airline introduced online international ticketing. Two Airbus A330-200s arrived in 2018, offering greater capacity for international growth. Nepal Airlines later retired its Chinese-built MA60 and Y-12 aircraft in 2020 and moved toward an Airbus-only operating fleet. The COVID-19 crisis halted scheduled flying from March 2020, but the airline performed evacuation, rescue and repatriation charters. Its continuing role is that of a public national carrier serving domestic communities and international routes from Kathmandu. The airline has nevertheless remained constrained by a small fleet, financial and governance challenges, and continuing European Union safety restrictions dating from 2013. Its aircraft, route network and service model have therefore been repeatedly adjusted to balance national connectivity with commercial viability.
- 2023
Stored Boeing 757 offered for auction
[1]The corporation issued a tender for the proposed auction of its remaining stored Boeing 757-200CB and associated assets.
- 2020
Chinese aircraft retired
[1]MA60 and Y-12 aircraft were withdrawn as unsuitable for the airline’s operating environment.
- 2018
Airbus A330s added
[1]Two A330-200 wide-body aircraft arrived to support international expansion.
- 2017
Online international booking launched
[1]Nepal Airlines introduced online ticket booking for international flights.
- 2015
Airbus A320 fleet renewal begins
[1]Sagarmatha and Lumbini joined the fleet, with the latter carrying earthquake-relief supplies.
- 2014
Xian MA-60 delivered
[1]The airline received a Chinese-built MA-60 and introduced a livery inspired by Nepal’s flag.
- 2013
Placed on European Union air-carrier ban list
[1]Nepal Airlines became subject to the EU operating restrictions associated with safety concerns.
- 2000
Lauda Air Boeing 767 lease investigated
[1]The controversial lease prompted an official investigation and management consequences.
- 1992
Domestic market liberalized
[1]Private airlines entered Nepal’s domestic market and intensified competition.
- 1987
Boeing 757 introduced
[1]Boeing 757s began replacing the older 727 fleet.
Products and positioning
Nepal’s national flag carrier and state-owned aviation link, combining domestic connectivity across difficult terrain with international services supporting tourism, trade and overseas travel.
Scheduled air transport · 1958
Domestic passenger services
Nepal Airlines operates scheduled domestic flights linking Kathmandu with regional and mountain destinations. The service is designed around Nepal’s difficult terrain and dispersed communities, using aircraft and airports suited to short sectors and challenging airfields. Domestic cabins are generally economy-only, and many flights are brief, with limited onboard service.
Scheduled air transport · 1958
International passenger services
International operations connect Nepal from Tribhuvan International Airport with destinations across Asia and nearby international markets. The network has historically included cities in India, China, Southeast Asia, the Middle East and East Asia. Airbus A320 aircraft serve shorter international routes, while Airbus A330 aircraft provide greater capacity on longer medium-haul services.
Business class
Shangri-La Class
Shangri-La Class is Nepal Airlines’ international business-class product. It is offered on Airbus A330 and A320 aircraft with different seat capacities and configurations. The service includes meals and complimentary beverage choices; A330 operations provide a more spacious wide-body cabin than the narrow-body A320 product.
Charter aviation
Rescue and repatriation charters
As Nepal’s national carrier, Nepal Airlines has operated rescue, evacuation and repatriation flights during emergencies. This role was especially visible during the COVID-19 pandemic, when scheduled services were grounded but charter missions continued to move stranded passengers and support emergency transport requirements.
Controversies
2013
European Union safety restrictions
Nepal Airlines has remained on the European Union list of air carriers banned from operating in the EU because of safety concerns. This is a regulatory and safety issue rather than a commercial product announcement.
2005
Former chairman imprisoned for corruption
Former Nepal Airlines chairman Ramagya Chaturvedi was jailed for corruption, part of a broader period in which the airline faced recurring allegations concerning governance and procurement.
2000
Lauda Air Boeing 767 lease controversy
A lease of a Boeing 767 from Austria’s Lauda Air was criticized by employees and government officials who argued that Nepal Airlines did not need another wide-body aircraft and that the effective flight-hour cost exceeded the contract figure. The chairman and other executives were suspended during an investigation, and the tourism and civil aviation minister resigned soon afterward.
Brand decisions
2020
Withdrawal of Chinese-built turbopropsGeneration changeBackground
Nepal Airlines assessed its Xian MA60 and Harbin Y-12 aircraft as unsuitable for operations in Nepal.
Action taken
The carrier retired both aircraft types and continued its move toward an Airbus-centered fleet.
Aftermath
The retirement simplified the fleet but reduced the number of available aircraft for smaller domestic routes.
2018
Wide-body fleet expansionProduct launchBackground
The airline wanted larger aircraft to support international expansion and potential services to East Asian and Australian destinations.
Action taken
Two Airbus A330-200 aircraft were acquired through Hi Fly and AAR Corporation.
Aftermath
The A330s became the carrier’s principal wide-body platform for international operations.
2009
Airbus A320 acquisition planProduct launchBackground
Nepal Airlines sought to modernize its fleet and develop services to the Middle East and Southeast Asia.
Action taken
The airline signed a memorandum of understanding at the Dubai Airshow for two Airbus A320-200 aircraft.
Aftermath
The first A320 arrived in 2015, beginning a major fleet-renewal phase.
2004
Proposed minority privatizationStrategyBackground
The government considered selling 49 percent of Nepal Airlines and transferring management control to private-sector investors while retaining a 51 percent stake. The proposal was intended to provide capital and help address the airline’s debt and operational difficulties.
Action taken
The government announced the proposed ownership and management restructuring, but Nepal Airlines remained state-owned.
Aftermath
The proposal did not produce a completed privatization according to the supplied reference material.
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