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Kathmandu, November 7: The High-Level Study and Recommendation Committee formed to reform Nepal’s civil aviation sector has suggested restructuring Nepal Airlines Corporation into three separate entities.

The committee, chaired by the current Minister for Industry, Commerce, and Supplies, Anil Kumar Sinha, submitted a report to the government recommending that, in the first phase of reform, the corporation’s ownership be changed to align with the Company Act, 2063 (2006). It suggests converting the corporation into a company, ensuring capital investment through government-owned institutions and funds, registering its shares, and establishing a new public company under the provisions of the mentioned Act.

Even after the completion of the first phase, the report recommends dividing the corporation—currently operating under a single structure—into three independent entities: Nepal Airlines Company Limited for ground handling services, Nepal Aviation Services Company Limited for international flights, and Nepal Airlines Corporation for domestic flights.

“After separating the three services, two of them can be listed on the Nepal Stock Exchange under a company model, while the third—responsible for domestic flight operations—can continue under the existing structure of the corporation,” the report states. “According to the current institutional setup, the domestic unit can continue as a government service provider by adding four aircraft: 18-seater planes for remote areas and suitable aircraft for accessible regions.”

The report further recommends increasing the corporation’s current capital from Rs 300 million to Rs 5 billion after the restructuring.

People’s News Monitoring Service.