Kathmandu Air Crash: The Financial Struggles And Kuber Group Links Of Saurya Airlines

At least 18 of the 19 people onboard the Saurya Airlines aircraft were killed when it crashed at the Kathmandu airport on Wednesday, as reported by local media.

The plane crashed during takeoff from Tribhuvan International Airport in Nepal's capital.

The pilot was rescued from the flaming wreckage, but the other 18 passengers were killed, according to police reports. Nepali police spokesman Dan Bahadur Karki stated that the flight was carrying two crew members and 17 of the airline's staff, with a foreigner among the deceased.

Gyanendra Bhul of Nepal's Civil Aviation Authority mentioned that the flight was being conducted for either technical or maintenance purposes.

All about Saurya Airlines

Inaugurated in August 2014, Saurya Airlines is a major contributor to Nepal's aviation and tourism sector. According to its website, the airline serves five domestic destinations "with three state-of-the-art modern aircraft operating daily."

The airline's current fleet includes Bombardier CRJ 200 aircraft, which can carry up to 50 passengers with a maximum payload weight of 5,942 kg. Dipak Pokharel currently serves as the chairman of the airline, as reported by CNBC TV 18. On December 6, 2018, operations at Kathmandu airport were halted for the airline after it failed to pay debts amounting to $355,000.

Amid financial constraints, the airline secured a major partnership deal with India's Kuber Group, which acquired a 49% stake in the airline for $5.6 million, according to an India Today report. The remaining stakes are held by other parties.

Reports indicate that the airline was permitted to resume operations in 2020 after part of its debt was paid. The airline operates three Canadian Bombardier CRJ-200 aircraft.

A July 2023 report in HRM Nepal claimed that the airline reduced its staff by 40% in a cost-cutting measure.

Further, a source told the outlet that the Kuber Group reportedly halted further investments in the company due to the lack of returns on their previous investment, as reported by CNBC TV 18.

Nepal's aviation sector

Nepal has a woeful track record regarding aviation safety, with the Himalayan nation witnessing a spate of deadly plane and helicopter crashes in recent times. While the aviation industry has boomed in recent years, it has been plagued by poor safety due to insufficient training and maintenance, according to AFP.

All Nepali carriers have been banned by the European Union from its airspace over safety concerns. Nepal houses some of the world's trickiest runways to land on. In January of last year, a Yeti Airlines flight crashed while landing at Pokhara, killing all 72 onboard.