Examining Nepal’s Aviation Struggles

Nepal’s aviation industry is a vital link between the country and the rest of the world, yet it continues to face obstacles that hinder its progress. Given Nepal’s landlocked geography and challenging terrain, air travel is not just a convenience but a necessity for trade, tourism, and connectivity. Contributing around 4 per cent to the national GDP, the sector holds immense potential to drive economic growth. However, outdated infrastructure, inefficiencies, and geopolitical roadblocks have prevented it from reaching its full capacity. 

Tribhuvan International Airport (TIA), Nepal’s main international gateway, handled 4.96 million passengers in 2024, underscoring its importance. However, the airport struggles to accommodate increasing traffic, with overcrowding, delays, and outdated systems in baggage handling and air traffic control making it a bottleneck. Designed decades ago, TIA is in dire need of modernisation to keep up with growing demand. Nepal’s geographical position between India and China presents both opportunities and challenges. 

Air safety ban

Beijing’s $216 million investment in Pokhara International Airport, as part of its Belt and Road Initiative (BRI), highlights China’s strategic interest in Nepal’s infrastructure. Yet, the airport remains largely underutilised due to India’s refusal to grant westward airspace access for larger aircraft, significantly limiting its operations. Similarly, Gautam Buddha International Airport, intended to attract Buddhist pilgrims and regional travellers, has struggled to secure international airline partnerships, resulting in financial losses for businesses relying on increased passenger traffic.

A major barrier to Nepal’s aviation growth is the European Union’s air safety ban on Nepali airlines, imposed in 2013. This restriction has not only blocked access to European markets but has also damaged Nepal’s global aviation reputation. The national carrier, Nepal Airlines, once a source of national pride, has suffered the most, with its market share dropping from 25 per cent in 2020 to just 11.28 per cent in 2024. Until Nepal meets international safety standards, the EU ban will continue to hinder expansion opportunities. Nepal’s tourism sector, which accounts for roughly 7 per cent of GDP, has also been impacted by aviation inefficiencies. 

Despite global interest in attractions like Mount Everest, Lumbini, and the Annapurna Circuit, limited direct flights from key markets such as Europe and North America make Nepal less accessible. Long layovers and complex travel routes discourage high-value travellers, further weakening the aviation sector’s ability to support tourism growth. The underutilisation of newer airports only adds to this problem. Geopolitical dynamics further complicate Nepal’s aviation challenges. As a landlocked country, Nepal relies heavily on its neighbours for airspace access and trade routes. 

India’s influence over Nepal’s aviation policies has, at times, resulted in restrictions that limit Nepal’s autonomy. Meanwhile, China’s growing investments, while beneficial, also come with strategic considerations. Balancing these relationships while ensuring Nepal’s aviation interests are protected requires careful diplomatic manoeuvring and long-term planning. The long-delayed Nijgadh International Airport project is another example of the difficulties facing Nepal’s aviation sector. Originally proposed as a solution to TIA’s congestion, Nijgadh was envisioned as one of South Asia’s largest airports. 

However, legal disputes, environmental concerns, and bureaucratic delays have stalled progress. If completed, the airport could transform Nepal into a regional aviation hub, but for now, it remains a symbol of missed opportunities. Addressing these challenges will require bold reforms and strategic investments. Upgrading TIA’s infrastructure should be an immediate priority, with improvements in terminal capacity, baggage handling, and air traffic management. Integrating underutilised airports like Pokhara and Gautam Buddha into the national aviation network through international airline partnerships and targeted marketing strategies could enhance their viability. 

Additionally, reviving the Nijgadh project with sustainable practices could help meet long-term aviation demands. Beyond infrastructure, policy reforms are crucial. Meeting international safety standards to lift the EU ban should be at the top of Nepal’s agenda. Achieving this would restore Nepal’s credibility in global aviation and open access to lucrative European markets. Strengthening regulatory oversight, adopting modern aviation technologies, and ensuring transparency in governance are key steps towards a more competitive aviation sector. Furthermore, diversifying partnerships with global aviation markets in Europe, North America, and East Asia would reduce overreliance on India and China, creating a more balanced approach to growth. 

Human capital

Investing in human capital is another essential component. Training and retaining skilled aviation professionals—including pilots, engineers, and air traffic controllers—will be critical for long-term success. Encouraging private sector involvement could also introduce innovation and lessen dependency on foreign expertise. By prioritising workforce development, Nepal can build a resilient aviation industry capable of competing on an international level. Nepal’s aviation sector is at a crossroads, facing both significant hurdles and immense opportunities. 

The potential to transform into a regional aviation hub is within reach, but achieving this will require decisive action. Modernising infrastructure, improving safety standards, and fostering stronger global partnerships are no longer optional—they are urgent. With the right reforms and investments, Nepal can overcome these aviation challenges, unlocking new economic opportunities and securing a stronger position on the global stage.

(Basnet is currently studying MSc in Air Transport Management at the University of Surrey, United Kingdom.)