<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131156/636a52549c7e80680e0522eajpeg.jpg" alt="" width="1400" height="933"/><figcaption>Pic: NAYA KHOJ</figcaption></figure>The woes that plague state-owned Nepal Airlines Corporation (NAC) are not new: mismanagement, political interference, incompetence and inability to compete internationally. Instead of improvements after the addition of four new jets in the past two years, however, the crisis has worsened.The airline’s two Airbus 330s and two 320s added a whopping debt burden of nearly Rs30 billion, forcing the carrier to look for  government bailout. Most of its domestic fleet is grounded, the airline has not been able to sell off its two Boeing 757s, and air route permits to Incheon, Kansai and Guangzhou have all been delayed.Last month, Prime Minister KP Oli warned management: “If the airline is not run properly, the government can step in. We cannot keep pouring Rs37 billion into a bottomless pit every year.”Oli appointed loyalist Madan Kharel as executive director of NAC in October last year, but there was confusion over his responsibilities and those of Managing Director Sugat Ratna Kansakar, who later resigned. Kharel promised to make the airline’s domestic fleet airworthy in three months, launch flights to Guangzhou by March, and use the 330s on other long-haul routes.Nearly a year later none of that has happened. NAC is three months behind on payments of Rs3.39 billion to Citizen Investment Fund and Provident Fund, on loans.PM Oli summoned Kharel to Baluwatar two weeks ago, asking him to present a plan to take the carrier into profit. But Kharel begged for a subsidy, and Oli was said to be livid, stating that the government would rescue the airline only if it came back with a new business plan.Kharel went into panic mode. NAC senior management recently spent two days at a retreat in Godavari to come up with a break-even strategy, and Kharel has issued requests for proposals to contract out the operations and engineering departments.But even the airline’s own employees have doubts. Achyutraj Pahadi, a member of NAC’s operations committee, says staff will not cooperate with outside contractors, and a better option would be to find a strategic partner.Read also: <a href="https://www.nepalitimes.com/banner/keeping-nepal-airlines-airworthy/" target="_blank" rel="noopener">Keeping Nepal Airlines airworthy</a>, Sharad OjhaKharel argues that putting in place a strategic partner would take too long. Indeed, Lufthansa was selected as a strategic partner in 2016 but the Finance Ministry sank the deal. There has been no international interest in a new call for proposals made in December.Buddhisagar Lamichhane of the Ministry of Tourism and Civil Aviation says a strategic partner is not a panacea: “Bringing in an airline with expertise in the aviation sector would help, but only if the airline was on a sounder financial footing already.”In his defence, Kharel says he was saddled with huge loans for the new planes: “When I took over, we had new planes but no plans to fly them. Now we are ready to fly new routes, but we need capital injection from the government.”Kharel has submitted his breakeven plan to the ministry, which includes starting flights to Osaka, Riyadh and Guangzhou and increasing the fleet utilisation. To be fair, it is not entirely the airline management’s fault that long-haul routes have not panned out. Nepal is still on the EU black list, (see box) and some countries are reluctant to allow flights.This week, airline staff saw a glimmer of hope in Oli’s appointment of Yogesh Bhattarai as Tourism and Civil Aviation Minister (pictured, left). He is seen as a can-do politicians in the mould of his predecessor Rabindra Adhikari who died in a helicopter crash in Taplejung in April.“My goal is to make Nepal Airlines profitable, I have heard it is mismanaged and will have to study the company. But I want to make it an airline Nepal can be proud of,” Minister Bhattarai told Nepali Times.NAC has announced discounted promo fares for its thrice-weekly direct flights to Osaka from 29 August, revival of a route Nepal Airlines used to operate. But proposals to fly to Seoul are delayed because the Koreans are insisting on a safety audit.Read also: <a href="https://www.nepalitimes.com/latest/jet-closure-benefits-nepal-airlines/" target="_blank" rel="noopener">Jet closure benefits Nepal Airlines</a>, Sharad OjhaAmidst much fanfare, China this week announced it was expanding bilateral air services from 70 to 90 flights a week, and adding one more destination to 8 Chinese cities. However, there is no word from the Chinese on Himalayan Airlines’ proposal for direct flights from Kathmandu to Shanghai and Beijing, as well as Nepal Airlines’ plan to connect to Guangzhou.On the domestic front, only half of NAC’s two Chinese-made MA60s and four Y12s are flying. Two of the four aged DHC6s are being cannibalised. And things have gone quiet on plans to add six Vikings.“The government has no clear strategy, that is true,” admits Bhagwan Krishna Singh, a former director. However, although political interference is at the root of the airline’s malaise, the government cannot be blamed for the company’s gross mismanagement over the years.The saving grace for the airline has been its main cash cow: ground handling at Kathmandu Airport which brings in Rs2 billion year. However, other international airlines that fly into Kathmandu have complained about expensive but sloppy service, dilapidated ramp buses and inefficient check-in, which will need to be upgraded ahead of Visit Nepal 2020.Suresha Acharya, deputy secretary at the Ministry of Tourism and Civil Aviation, agrees that things must change: “The government has two options: either invest in shares, or invite foreign investment. But with the corporation’s financial situation so dire it is unlikely foreign partners will be interested.”Read also: <a href="https://www.nepalitimes.com/here-now/what-can-nepal-learn-from-ethiopia/" target="_blank" rel="noopener">What can Nepal learn from Ethiopia?</a>, Kunda Dixit<h2>Why Still Blacklisted?</h2>The European Union (EU) and the International Civil Aviation Authority (ICAO) blacklisted Nepali carriers from flying in European airspace after a series of crashes, including a flight to Lukla from Kathmandu airport that killed 19 people, including seven Britons.After a safety audit that suggested reforms, in 2017 ICAO removed Nepal from its list of countries with Significant Safety Concern. However, the EU has maintained its ban, citing structural and safety concerns.The main EU complaint is that the Civil Aviation Authority of Nepal (CAAN) is both a regulator and an operator, because it also manages Nepal’s airports. The cabinet last month last week agreed in princple to separate CAAN’s regulatory and service functions, and instructed the Ministry of Tourism and Civil Aviation to draft a law and present it to Parliament for debate.<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108131156/636a52569c7e80680e0522ebjpeg.jpg" alt="" width="640" height="590">New Tourism Minister Yogesh Bhattarai (pictured) said on Wednesday: “I will work to reform civil aviation safety in Nepal.”The government has been working on unbundling CAAN since 2012, but sceptics say the EU is naive to insist on this provision since the two bodies will still be under the purview of the ministry, with one chaired by the minister and the other by the secretary at the ministry.Around 5 years ago, Spanish company Ineco presented to the ministry a $4.2 million strategy with funding from the Asian Development Bank, which included restructuring of CAAN, a business plan and employee training. However, all is on hold until the new legislation is passed.The EU’s other concern is frequent helicopter accidents in the past four years. Aviation experts say these had to do more with Nepal’s terrain and weather, noting that none of the accidents were caused by technical malfunctions. In fact, most domestic air crashes in Nepal have happened during flights to remote airports, there have been no fatal crashes on trunk routes since 1999.One retired senior CAAN official puts it bluntly: “Nepal Airlines has bought new Airbus, there is no reason the EU should still blacklist us. We are being punished for Nepal Airlines being forced to operate Chinese planes.”The EU ban has had a direct impact on Nepali carriers, especially NAC, as it has been unable to operate the recently bought widebody Airbus A330 aircraft on long-haul flights.

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Nepal Airlines has new planes, but no new plans

Turkish Airlines has decided to expand its fleet with 50 firm and 10 optional orders for new aircraft. Six planes will be delivered in 2019, 14 in 2020, 10 in 2021, 12 in 2012, 11 in 2023 and 7 in the year 2024. They include a total of 30 B787-9 aircraft, 25 firm and 5 optional, will be purchased from Boeing and a total of 30 A350-900 aircraft, 25 firm and 5 optional will be purchased from Airbus. “Goodwill agreements turned into firm orders; which we consider to be a very important initiative to meet our need for wide body aircraft at Istanbul’s New Airport.” <img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221104141140/636516be9c7e80680e02c232jpeg.jpg" alt="M. İlker Aycı 1"/> M. İlker Aycı Chairman of the Board and the Executive Committee, Turkish Airlines <img width="640" height="198" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221104141140/636516c09c7e80680e02c233jpeg.jpg" alt="">

Turkish expansion

Nepali Congress (NC) President Gagan Thapa's candidacy in Sarlahi-4 has thrust this Madhes constituency into rare national focus. If Thapa wins and the NC emerges as the largest party, Sarlahi-4 will send Nepal's next prime minister to Parliament. But if he does not, Nepal’s grand old party will face the next years in the opposition to fight another day. There is a troubling paradox in Sarlahi-4 where the district bordering the Indian state of Bihar has been a battleground for national politicians with fierce electoral competition, all while remaining one of the region's most underserved and underdeveloped constituencies.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260305140344_069cbbc11e971a851b444866dee57f760c0cc611ed40bdf96c627e343e3c0485.png" data-media-id="editor_0" data-image-id="20260305140344_069cbbc11e971a851b444866dee57f760c0cc611ed40bdf96c627e343e3c0485" data-rendition-name="original" width="1802" height="1276" loading="lazy" alt="Sarlahi-4 voting"> <figcaption>Photo: MADHES PAHARA MEDIA</figcaption> </figure>  Ever since Mahant Thakur split from NC in 2008 to form the Tarai Madhes Loktantrik Party, the district has seen rotating political alliances and fragmented votes. Yet, despite 18 years of candidates promising change irrigation schemes remain incomplete, market access for farmers has not improved, unemployment is high.&nbsp; On election day, voters here marked their ballots with fingers stained by dye from the Holi festival the day before. The road leading to Barathawa Bazar was deserted for the most part, except for some youth riding in motorcycles. This is where the high-profile contest between Gagan Thapa and RSP nominee Amresh Singh is being staged. Among the other aspirants is 27-year-old UML candidate Amnish Yadav, the son of former MP Shiv Pujan Yadav. The Yadavs are a political family with considerable caste influence in the constituency. In 2022 Yadav’s daughter Madhumala Yadav received over 14,000 votes here, ranking third overall. Yadav was voted MP from the Maoist party, but defected to the UML this time. His other son is the chair of Sarlahi’s Ramnagar Rural Municipality. Sarhali-4 has 121,012 voters, and the Yadav is banking on the 27,000-strong Yadav vote bank. Sarlahi-4 voter Avishek Sah told us he wanted his vote to go to a young nominee and not someone who has been MP thrice already, like Amresh Singh. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260305140344_527c5c2f9aa6a6c7e3bbdfbfe79fdafb0a0b56a62427e9ced86b924c6c563b10.jpg" data-media-id="editor_1" data-image-id="20260305140344_527c5c2f9aa6a6c7e3bbdfbfe79fdafb0a0b56a62427e9ced86b924c6c563b10" data-rendition-name="original" width="1200" height="1600" loading="lazy" alt="Sarlahi-4 voting"> <figcaption>Photo: AYUSHA CHALISE</figcaption> </figure>  To make local loyalties even more complicated, Amnish Yadav’s uncle, Harinder Yadav is an active NC member and walked side by side with Gagan Thapa during his door-to-door campaigns.&nbsp; The NC is betting on Thapa getting over 60% of the total votes. Amresh Singh’s tally could be limited to 10,000 votes — that too because of the nationwide RSP wave, and the popularity of its prime ministerial hopeful Balendra (Balen) Shah. “Amresh Singh lost his appeal when he played victim after he was denied a ticket by the NC in 2022,” Harinder Yadav says. Voters we spoke to here agreed with this assessment that Singh did not do much for the district once he got elected in the past, and being a part of the RSP seems to be his biggest asset. “The only reason I voted for Amresh Singh is because Balen is in RSP,” local voter Mahendra Gupta from Barathawa. &nbsp;“This is his last chance to return the people’s trust.”&nbsp; Gupta is aware of the institutional presence of the NC here. The party received the most votes in 2022 local elections, adding that the candidacy of someone as high-profile as Thapa is a positive sign for Sarlahi-4.&nbsp; Other voters like Ruby Gupta are rooting for both the NC and the RSP. “I will vote for Gagan and for Balen,” she says, adding that her FPTP vote will go to Thapa while her PR ballot would be for the RSP. RSP supporters are confident that their candidate will win big because even though many voters may not have openly voiced their support they still voted for the party and candidate. The Balen Wave was not limited to RSP voters, but also to UML candidate Yadav, who said in a gathering that he will be “the voters Balen” if they elect him. He touted his party’s track record in government, and largely campaigned on administrative efficiency, infrastructural expansion, and local service delivery. Amresh Singh ran on the RSP’s anti-establishment brand, promising to fight corruption, challenge traditional party politics, improve basic services such as education, health, jobs, and infrastructure, while pushing for stronger representation and development for Madhes.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260305140344_982df01801fa7d3532ca0555ecb8a0756e3223be3d93650e08ca82a312dc2ebd.jpg" data-media-id="editor_2" data-image-id="20260305140344_982df01801fa7d3532ca0555ecb8a0756e3223be3d93650e08ca82a312dc2ebd" data-rendition-name="original" width="1600" height="1200" loading="lazy" alt="Sarlahi-4 voting"> <figcaption>Photo:AYUSHA CHALISE</figcaption> </figure>  Singh’s rivalry with his NC competitor goes beyond the ballot— he allegedly blames Thapa for being denied the NC ticket in 2022, which led him to win the election from Sarlahi-4 as an independent. &nbsp; For his part, Gagan Thapa focused on a more pragmatic development agenda that includes upgrading roads and irrigation, improving schools and hospitals, supporting farmers, and creating employment opportunities with improved governance at the centre. He also promised to build an engineering college in the constituency.&nbsp; Thapa also promoted his own anti-establishment image within the NC, repeatedly reminding voters on the campaign trail that he represents the aspirations of the youth.&nbsp; On Thursday, as voting progressed, there were violent disruptions in two centres where voting was briefly halted. But Sarlahi district police spokesperson Saroj Rai told Nepali Times that there were no major problems. Police in collaboration with the Nepal Army sent the ballot papers to the district’s counting stations, where the votes are expected to be tallied through the night and the winner announced Friday morning.

Sarlahi-4 nervously watches ballot count

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Nepal election live results

As this report is uploaded, the latest results in Nepal’s election show that the Rastriya Swatantra Party (RSP) is headed for an even bigger sweep than most had predicted.
The RSP was leading by large margins in 49 of 165 constituencies, &nbsp;with the UML, NC and NCP trailing far behind. Prominent political figures from the old parties like K P Oli, Minwndra Prasad Rijal, Ishwar Pokhrel, Bishnu Prasad Poudel, Bimalendra Nidhi all seem headed for defeat.
It does look like the RSP’s bell election symbol is ringing right across Nepal — from cities to the remotest districts in the mountains and plains. The party’s blue colour is sweeping the land.
The Nepali people seem to have sent a clear message that they were throughly dissatisfied with the chronic failure of the three main parties to work in the national interest to create jobs and deliver development. It was also an expression of lingering outrage over the the 8 September massacre outside Parliament. &nbsp;
It now looks almost certain that Balendra Shah will get to be Nepal’s next, and youngest, prime minister. Hopefully he will be leading a cabinet of competent and honest technocrats. It remains to seen how the power equation between Shah and the RSP’s leader, Rabi Lamichhane will play out.
Lamichhane is out of jail on bail for fraud cases which he has called political vendetta by the previous regime. Both he and Shah are charismatic and ambitious. Their working relationship will determine Nepal's political stability and whether it can avoid the political cronyism of the past.
This election was not just about casting votes. It was about standing up to principles and a value system, and respecting the hopes and aspirations of Nepal’s youth. It to push for transparent government and against impunity — including for the gunning down of young Nepalis in cold blood.
<div class="embed-block"><iframe src="https://election-geo-dashboard.pages.dev/" width="100%" height="600" frameborder="0"> </iframe>Live election results as winners of candidates are announced.</div>
CAN DO MAN
Shah got mixed reviews as mayor. He was impulsive and ad hoc, but most people inKathmandu and beyond liked his can-do attitude and unconventional style which stood in sharp contract to the legacy leaders. Over his three year mayorship he showed more maturity and planning capacity.&nbsp;
But he always ran headlong into opposition from the federal government over his urban planning and other initiatives to make Kathmandu more liveable. Coming from a civil and structural engineering background, he was involved in building low-cost housing after the 2015 earthquake.
But his public persona is more tied to his irreverent rap lyrics that stood up for the marginalised underprivileged in society, while exposing the high-handedness and apathy of the state. But this also exposed contradictions because he also used his own municipal guards to beat and chase away street vendors and squatters.
But there is no doubt that a combination of the sharp messaging in his rap videos amplified by the algorithms of social media ignited Nepal’s youth to rise up. It was more about optics and emotion than policy and strategy.
He studied Kathmandu district for five years, visiting experts in every field before announcing his independent candidacy for mayor in 2022. Many like me in his own constitunecy did not know who he was and where he came from.
He is a year younger than my architect son, and I saw in him a reflection of my own son’s commitment to serving the nation. I voted for him to be mayor despite his sometimes erratic behaviour, which could be attributed to his youth.
The best sign of his strategic planning, which unsettled septuagenarian and octogenarian politicians, is the he did not grab the first easy option of becoming prime minister in September when GenZ activists offered him the post.&nbsp;
Joining RSP was a masterstroke, as was his challenge to Oli in Jhapa to project national branding. He needed a party platform and Lamichhane needed a popular prime ministerial persona since he himself could not hold the post.
Shah has shown the capacity to take risks when he believes the value justifies the action for the country. Now, he will have to show more strategic thinking on a national scale, as well as understand the delicate geopolitics of Nepal.&nbsp;
He must rise above the kind of crude social media posts that earned him followers on X, but did nothing to erase his erratic and impulsive image.&nbsp;
Some assume that behind his trademark RayBan shades is a closet dictator, and his past remarks about Hitler are still up on social media. He has in the past shown impatience with criticism, unleashing supporters on social media to troll detractors.&nbsp;
Even so, the public seems willing to place their hope on an educated young man with integrity and a proven record for planning at the helm. By tomorrow it will be clear whether the hope Nepalis have held has been fulfilled, and the coming years will show if the RSP will lead Nepalis to a better future.
The voters seem to have shown the door even to the NC despite the fact that under Gagan Thapa, the party had turned a new leaf. A strong government under Prime Minister Balendra Shah heading a carefully selected cabinet and a strong opposition of the NC, UML and other parties for check and balance may be just what we need for a stable Nepal.&nbsp;
Nepalis have collectively always shown maturity in elections. This time they have given a resounding endorsement for integrity and for good governance.

Bells ring all over Nepal

After Thursday’s election, Nepalis are in a wait-and-watch mode. The Election Commission says counting ballot papers will be expedited this time, and the results for the First-Past-The-Post (FPTP) will start being declared within days. In 2022, it took three weeks for the final results to be tallied.&nbsp;
But winning an election is only half the challenge for the parties, forming a government under parliamentary politics is like a complicated mathematical equation.&nbsp;
In 2022, the Nepali Congress (NC) emerged as the biggest party, winning 89 seats. But the UML with 78 seats and the Maoists with 32 formed a minority government. In fact, Sher Bahadur Deuba did not become PM then despite leading the biggest party in Parliament.
This time, there is an unmistakeable Rastriya Swatantra Party (RSP) wave led by its prime ministerial candidate, Balendra Shah. Besides his own popularity, Shah represents change which most Nepalis are clamouring for after decades of corrupt and feckless coalitions that did not deliver.&nbsp;
The past months of campaigning has seen massive youth engagement on social media through memes, AI clips, and viral images. Digital content that appeals to emotion rather than policy debate between candidates shape electoral outcomes in Nepal and elsewhere. &nbsp;
Shah represents GenZ aspirations, and was their candidate for prime minister. It was only when he declined that Sushila Karki was nominated. None of the political parties in the recent past -- new, old, or revolutionary — have won enough seats to go it alone.&nbsp;
The most recent majority government was formed by the short-lived Communist Party of Nepal after the UML-Maoist merger in 2022. But that rare two-thirds majority collapsed after a power struggle between K P Oli and Pushpa Kamal Dahal. The only party to have won a majority was the NC in the 1991 and 1999 elections. But it is near impossible for it to repeat this success now, even with Gagan Thapa's rebranding of the party.&nbsp;
We have compiled these possible scenarios for election outcome in order of likelihood:
RSP gets a majority
RSP hits the magic 138 to form a government entirely on its own. Balendra Shah wins Jhapa-5, and becomes the new prime minister at 35, the youngest ever to hold the office in Nepal. But danger lurks: there could be a personality clash between Shah and Lamichhane who are both equally ambitious. History could repeat itself.&nbsp;
RSP wins but does not get a majority
RSP is likely to sweep the most votes, but what if it does not secure enough seats for a majority? It would need a coalition partner and Nepali Communist Party (NCP) under Pushpa Kamal Dahal could fit the bill, but only if it has the numbers. The RSP is not likely to team up with the UML or NC.
The NCP is relatively untainted by the 8 September events, and also has former UML defectors like Madhav Kumar Nepal and Bhim Rawal who could bag their rural vote banks. After all, there are no permanent foes in politics. If the royalist RPP and Tarai-based Janata Samajwadi have enough seats, those could be options for the RSP. &nbsp;
NC is second
The NC under the new leadership of Gagan Thapa could become the second biggest force and form a government with RSP in a power-sharing deal with Shah. This would be the most stable scenario since the RSP and NC have competent and idealistic young technocrats. Thapa himself embodies a strong combination of both old and new politics to navigate the system for more efficient government. But then Thapa and the RSP's Rabi Lamichhane do not get along.
NC and NCP form a majority
If the NC becomes the largest party but not by a big margin, it could join up with the NCP and Ujyalo. Teaming up with the UML would likely face backlash with the party and outside. If Gagan Thapa becomes prime minister he will face internal pressure from both Deuba loyalists. Same old story.
Minority coalition of NC, UML and NCP
RSP becomes the first party but does not get a majority, paving the way for the three legacy parties to cobble together a minority government. While this is possible in Nepal’s parliamentary system, such a scenario is likely to lead to more instability and dissatisfaction among young Nepalis demanding change, and even trigger street unrest. &nbsp;

airbus

Nepal Airlines has new planes, but no new plans

Turkish expansion

Sarlahi-4 nervously watches ballot count

Nepal election live results

Bells ring all over Nepal

The magic 138