Nepal Airlines has been advised to hive off its flight operations and ground handling divisions.
The advice comes as the airline, which has been losing money in the recent past, prepares itself for a strategic management partner. The idea is that a more accurate economic picture of the flag carrier can be built up by separating the various services.
It is interesting to note that the carrier's ground handling activities at Tribhuvan International airport have been highly lucrative: reports suggest that Rs3bn in revenues have been earned on an annual basis. To put this into perspective, it accounts for around a third of the airport's total revenue. However, there is a darker side to the equation in that this profitability has been shoring up the losses incurred by the country's main airline.
