Though Nepal Airlines is the flag carrier of Nepal, it has not been able to allocate profit and is in poor financial condition because of instability inside the corporation and poor management. According to the officials of Nepal Airlines Corporation (NAC) and minister of Tourism Board and Civil Aviation for the smooth operation, management, and prosperity of the corporation , NAC will be operated by German airline Lufthansa.
With the consensus and permission of Prime Minister Sushil Koirala, NAC will be solely operated by Lufthansa. According to the proposal of Lufthansa, it will take the lead and operate NAC in three-stage. Firstly, it will collect and analyze all the necessary information of the corporation for which NRS. 3 crore 21 lakh and 55 thousand will be paid by NAC. Secondly, Involvement in management and 2% of the total profit of 2015 and 2016 will be also given to Lufthansa.
Thirdly, the reestablishment of the corporation and its development will also take place to make NAC independent and economically strong with more aircraft on its fleet.