Nepal’s Civil Aviation Authority (CAAN) has warned Himalaya Airlines that continued non-payment of approximately NPR629.2 million (USD4.1 million) in airport-related charges could lead to operational restrictions. The Kathmandu-based carrier’s winter flight schedule remains unapproved, but CAAN has not revoked or suspended its flight authorisation.
The arrears include about NPR440 million in passenger service charges collected from travellers but not remitted to the authority. They also cover landing, parking, navigation, cargo and other airport services. A separate update placed the remaining balance at NPR429 million after Himalaya paid NPR200 million.
Himalaya has proposed an immediate payment of NPR200 million and instalments for the remainder, offering ground-handling equipment worth about NPR500 million as collateral. CAAN previously approved an instalment arrangement in April, but the airline reportedly made only one payment before falling behind again. Additional charges and penalties could raise the total to approximately NPR700 million.
The airline has attributed its financial difficulties to higher fuel and airport costs, weak demand and restrictions on its ground-handling activities. Its accumulated losses have reportedly reached about NPR15 billion. CAAN faced a similar dispute with Himalaya in 2019, when the carrier owed approximately NPR250 million and subsequently entered an instalment arrangement.