Nepal Airlines Corporation (NAC) has successfully brought its narrow-body Airbus A320 aircraft, registration number 9N-AKX, back into regular flight operations after a prolonged period of engine maintenance and contractual disputes. The aircraft, which had been grounded for an extended time in Israel, arrived in Kathmandu on January 19, 2026, operating a regular commercial flight via Tel Aviv–Dubai–Kathmandu.
The aircraft had been stationed at Israel Aerospace Industries (IAI) in Israel for engine maintenance works. Due to various technical, financial, and contractual complications, the aircraft remained there far longer than initially planned, raising concerns over mounting engine repair and lease-related expenses.
Dispute Resolved Through Negotiation
According to Nepal Airlines, the long-standing dispute between the corporation and IAI regarding engine maintenance and lease support costs has now been amicably resolved. The resolution was achieved through negotiations based on the existing “Maintenance with Lease Support” agreement between the two parties.
Following the negotiations, both sides signed a Memorandum of Understanding (MoU), paving the way for the installation of the repaired engine and the completion of all necessary technical and regulatory procedures. With these processes finalized, the aircraft was cleared for flight and returned to Nepal, marking a significant breakthrough for the national flag carrier.
Major Financial Relief for Nepal Airlines
In a major relief to the financially strained corporation, Nepal Airlines confirmed that the costs related to 12 months of engine lease and engine installation have been waived. The waiver was provided as compensation under the negotiated settlement, significantly reducing the financial burden that had accumulated during the aircraft’s extended grounding.
Instead of continuing with a leased engine arrangement, the aircraft has now been fitted with Nepal Airlines’ own engine, enabling long-term operational stability and cost savings. The corporation described the settlement as a positive outcome that protects national interests and strengthens its operational capacity.
Leadership Efforts Behind the Breakthrough
Nepal Airlines credited the successful resolution to the sustained efforts of its leadership and management team. Executive Chairman Amrit Man Shrestha, along with senior management officials, played a key role in pursuing negotiations and steering the process toward a favorable conclusion.
The corporation stated that the issue, which had remained unresolved for a long time, was finally settled through continuous diplomatic, technical, and managerial engagement. Officials emphasized that the resolution reflects the commitment of the current management to address legacy challenges and improve the airline’s overall performance.
All Four Aircraft Now in Operation
With the return of 9N-AKX to service, all four aircraft in Nepal Airlines’ fleet are now operating under the regular flight schedule. This development is expected to enhance the airline’s capacity, improve schedule reliability, and reduce flight disruptions that passengers had been experiencing due to limited fleet availability.
The resumption of full fleet operations comes at a crucial time, as air travel demand continues to grow and the airline seeks to strengthen its presence on both domestic and international routes.
Boost to National Carrier’s Image
The successful return of the aircraft and settlement of the engine dispute is seen as a morale booster for Nepal Airlines, which has faced criticism in recent years over operational inefficiencies and aircraft shortages. Aviation observers believe that restoring grounded aircraft and resolving costly disputes are essential steps toward rebuilding public trust in the national carrier.
Nepal Airlines expressed confidence that the return of the narrow-body aircraft will contribute positively to service quality, punctuality, and financial discipline.
Way Forward
The corporation reaffirmed its commitment to maintaining transparent operations, improving fleet management, and avoiding similar disputes in the future. Officials said lessons learned from the prolonged engine issue would help strengthen contractual oversight and technical planning going forward.
With all aircraft now back in service, Nepal Airlines aims to focus on route expansion, service improvement, and financial sustainability, reinforcing its role as Nepal’s national flag carrier.
