NAC Contract Staff Removal
3rd November 2025, Kathmandu
Prime Minister Sushila Karki has issued a strong directive to Nepal Airlines Corporation (NAC) officials,ordering the immediate dismissal of contract employees recruited based on political or personal influence.
NAC Contract Staff Removal
The instruction, given directly to the NAC Board and management at Singha Durbar, signals a firm stance against deeply rooted corruption. The Prime Minister emphasized that putting an end to nepotism and favoritism within the national flag carrier is paramount.
This decisive action, focusing on NAC Contract Staff Removal, aims to restore integrity and operational efficiency to the struggling corporation.
Ending Nepotism and Favouritism
PM Karki, who also holds the portfolio of Minister for Tourism, did not mince words when addressing the airline’s leadership. She stressed the importance of honoring the recent widespread movements against discrimination and ill-governance.
She questioned the management’s ethics, pointing out the irony of new contract hires being made through personal connections even as youth movements demand an end to such practices.
The Prime Minister explicitly stated that the prevailing culture of favoritism and discrimination must cease. Furthermore, she expressed dissatisfaction with the arbitrary practice of holding back retiring employees. Such mismanagement, she asserted, is completely unacceptable and damages public trust in the state-owned enterprise.
The Scale of Nepal Airlines’ Financial Crisis
During the meeting, Acting General Manager Janakraj Kalakheti presented a stark financial overview of the corporation. The report confirmed that Nepal Airlines is currently grappling with accumulated losses exceeding Rs. 17 billion. This staggering figure underscores the urgency of the reform measures ordered by the Prime Minister.
PM Karki likened the corporation’s current state to “a wealthy household that is rotten inside.” She lamented that while the airline might appear respectable externally, its internal affairs are severely problematic.
Merely using the corporation to provide employment is an insufficient justification when the institution consistently operates at such a massive loss. Real and lasting institutional change is absolutely necessary.
Call for Hard Decisions and Implementation
The Prime Minister demanded that the NAC management take stern action to root out internal irregularities without succumbing to any pressure or influence. She warned officials against allowing any political or external pressure to deter them from carrying out their duties.
Beyond the immediate NAC Contract Staff Removal, PM Karki stressed the need for a planned implementation of past reform committee reports and recommendations.
The historical proposals for restructuring and operational improvement must be treated as actionable blueprints. The leadership must move forward with a clear strategy and full accountability to turn around the airline’s fortunes.
She reiterated the government’s commitment to supporting the NAC leadership in making the tough, unpopular decisions necessary for institutional survival and eventual success.
ICTFrame Analysis: A Step Towards Corporate Governance
The Prime Minister’s firm directive marks a decisive governmental intervention against political interference and poor corporate governance within a major public enterprise.
For a technology and business portal like ICTFrame, this story highlights the crippling effect of corruption on state-owned ventures. The removal of staff hired without merit is a painful but necessary step toward creating a culture of efficiency and transparency.
Reforming NAC, with its over Rs 17 billion loss, is not just an aviation issue—it is an economic necessity that requires leveraging modern corporate governance principles and perhaps, even a strategic infusion of technology-driven efficiency to stabilize its financial health. This push for meritocracy via NAC Contract Staff Removal is a positive step.
For more: NAC Contract Staff Removal