Nepal’s emerging domestic carrier Danfe Airlines is preparing to begin commercial operations with modern ATR 72-600 aircraft, while three Jetstream aircraft acquired from Guna Airlines remain grounded due to regulatory requirements. Danfe has taken over three Jetstream aircraft from Guna Airlines as part of a transaction that also involved settling its predecessor’s outstanding financial liabilities through the transfer of a Prime Bank loan.
However, the acquisition does not mean the airline can immediately deploy the aircraft for commercial flights. According to Danfe Airlines Chief Executive Officer (CEO) Abhishekman Shrestha, Danfe Airlines’ immediate priority is the introduction of ATR 72-600 aircraft, which are expected to form the core of its initial commercial fleet.
ATR 72-600 Remains the Priority
Danfe Airlines has already obtained a No Objection Letter (NOC) from the Civil Aviation Authority of Nepal (CAAN) for the proposed ATR operation. Danfe Airlines plans to induct at least one ATR 72-600 around the Dashain period and aims to commence commercial flights before considering the operational use of the smaller Jetstream aircraft.
Danfe Airlines has reportedly prepared a workforce to support the planned launch, with 22 pilots currently on standby. Recruitment for senior-level management positions is also underway, with the airline planning to accelerate pilot and operational training after Tihar. The strategy reflects Danfe Airlines’s intention to establish its initial operations around a modern turboprop fleet rather than immediately putting the acquired Jetstream aircraft into service.
Civil Aviation Authority of Nepal (CAAN) Approval Required for Jetstream Operations
Although Danfe has acquired the three Jetstream aircraft, the aircraft cannot automatically be incorporated into its approved operating fleet. Civil Aviation Authority of Nepal (CAAN) Information Officer Gyanendra Bhul said Danfe’s existing licensing and operational permissions are linked to ATR aircraft. According to the regulator, it has not received an official application from Danfe seeking approval to modify its fleet or add the newly acquired Jetstream aircraft to its operational plan.
This means Danfe must go through the necessary regulatory process before the Jetstreams can be used for scheduled commercial services. The situation highlights the importance of fleet approval and aircraft-specific authorization in Nepal’s aviation sector. Purchasing an aircraft does not by itself provide an airline with permission to operate it commercially.
Fleet Requirements Create Another Challenge
Danfe must also comply with the revised Airline Operators Certificate Requirements (AOCR) introduced by CAAN in February 2024. Under the revised requirements, new airlines are expected to expand their fleet to at least five aircraft by February 2029. The rules also require a new airline to have a minimum number of aircraft in its own inventory before receiving a formal Air Operator Certificate (AOC).
For Danfe, this makes fleet expansion an important part of its long-term operational strategy. While the airline is targeting the arrival of its first ATR before Dashain, it will still need to meet the broader regulatory and fleet requirements before establishing full-scale operations.
Commercial Launch Hinges on ATR Induction
Danfe’s immediate objective is therefore centered on bringing in its first ATR 72-600 and completing the necessary regulatory, technical and operational preparations. If the planned ATR induction proceeds as targeted, the airline could move closer to launching scheduled domestic services. The carrier is expected to focus initially on regional routes where ATR aircraft are well suited to Nepal’s domestic aviation network.
The three Jetstreams acquired from Guna Airlines, meanwhile, are expected to remain parked until Danfe obtains the necessary approval for their inclusion in its fleet and meets the applicable regulatory requirements. Danfe’s planned entry adds another potential competitor to Nepal’s domestic aviation market, but its commercial takeoff will ultimately depend on aircraft induction, regulatory clearance, fleet expansion and operational readiness.
