Kathmandu- Nepal Airlines Corporation has appointed a new executive head after operating without leadership for nine months

The government has appointed Maheshwar Bhakta Shrestha, the chairperson of the Nepal Airlines Corporation Board, as Executive Chairperson. The Cabinet on Tuesday entrusted him with both the responsibilities of chairperson and general manager.

The national flag carrier had been without a chief executive since October 23, 2025. Shrestha is a former employee of the corporation and returns to lead the airline two decades after leaving the organisation.

Having served Nepal Airlines for 25 years, Shrestha said he accepted the position to address the carrier's mounting challenges.

'The situation is far from satisfactory. I agreed to take on the leadership to help revive an institution that has reached a difficult stage,' he told Biznessnews.
He said the government's top priority is to reform the corporation and transform it into a company model, adding that he accepted the role with a commitment to lead that process.

'Operating the corporation under its current structure will not produce meaningful results. My first priority will be to convert it into a company model,' he said.
Nepal Airlines is currently facing a severe financial crisis. It has been unable to repay loan instalments and interest borrowed to purchase aircraft, and its liabilities have exceeded its assets.

The airline's market share has fallen sharply from 25 percent to 11 percent over the past four years.

Two wide body and two narrow body aircraft used for international operations have remained grounded for months because of delays in engine overhauls and the procurement of spare parts.

The situation is expected to worsen in the coming months, with both wide body aircraft at risk of being grounded. The corporation has yet to appoint a company to carry out engine maintenance or arrange replacement engines through leasing.