Nepal Airlines (RA, Kathmandu) Managing Director, Sugat Ratna Kansakar, says the airline has held preliminary discussions with an undisclosed Middle Eastern carrier over a possible stake sale.
Speaking to the Gulf News, Kansakar said the move comes after government, the airline's owner, mandated the board to find a strategic investor by the second quarter of next year.
While no firm plans have been laid out as yet, the government is reportedly willing to divest as much as 51% of the airline to a foreign partner Kansakar added. Though majority control would rest in the hands of foreigners, this would not affect Nepal Airlines' status as a national carrier.
Nepal Airlines is undergoing a restructuring programme aimed at turning the carrier into an attractive entity to any would-be foreign investors.
Nepal Airlines currently operates two A320-200s, one B757-200 (to be phased out shortly), two DHC-6-300s, one MA-60, and one Y12 on domestic Nepali as well as regional Asian flights. A maiden A330-200 is expected by year-end.
In all, Nepal Airlines is the latest state-backed carrier in South Asia after SriLankan Airlines (UL, Colombo International) to formally seek outside intervention. The Sri Lankan national carrier has already tendered for proposals with several firms including China's HNA Group, Turkish Airlines (TK, Istanbul Airport), ANA - All Nippon Airways (NH, Tokyo Haneda), and Garuda Indonesia (GA, Jakarta Soekarno-Hatta) having reportedly shown an interest in becoming a strategic partner.
