Kathmandu – The Nepal government has proposed involving the private sector in operating its two regional international airports Pokhara International Airport and Gautam Buddha International Airport under a partnership model, citing persistent low utilisation since their inauguration.
Finance Minister Dr. Swarnim Wagle presenting the federal budget for fiscal year 2026/27 in Parliament on Friday said both airports would be operated at full capacity in partnership with private sector.
The announcement effectively signals a policy shift away from state-led operation towards private management in an attempt to revive underperforming aviation assets.
Both airports were built with long-term expectations of boosting international connectivity outside Kathmandu but have struggled to attract sustained commercial traffic. Despite repeated government efforts to promote international flights, airlines have shown limited interest, citing low passenger demand, high operational costs and weak route viability.
As a result, the airports have largely fallen short of the projections made at the time of their inauguration.
The proposed partnership model is being presented as a corrective measure but it also reflects a deeper structural issue.
The mismatch between infrastructure expansion and market demand. In aviation terms, airports do not become viable simply by being declared international, they require consistent airline networks, tourism flows and cargo movement all of which remain uneven in Nepal’s regional cities.
Alongside this plan, the government has allocated Rs 1.53 billion for upgrading Tribhuvan International Airport, the country’s primary international gateway which continues to face congestion, limited expansion capacity and operational pressure despite being Nepal’s busiest airport.
The budget also states that a modality for the proposed Nijgadh International Airport will be prepared within six months, a project that has remained politically contested and environmentally debated for years with repeated delays over feasibility and land acquisition concerns.
Domestic aviation infrastructure is also set for expansion with night flights planned at Bharatpur Airport following upgrades and a list of regional airports including Surkhet, Talcha and Tarigaon identified for further development.
However, aviation experts have long cautioned that Nepal’s airport strategy risks prioritising construction over utilisation.
Both Pokhara and Bhairahawa airports illustrate this gap while infrastructure has been delivered at international standards, airline routes, passenger volume and supporting tourism ecosystems have not developed at the same pace.
The government’s renewed push for private sector involvement suggests recognition of these constraints but it also raises a key question, whether the core issue lies in airport management or in the broader economics of demand that even private operators may struggle to overcome.
For now, the budget signals a clear intent to keep expanding aviation infrastructure while simultaneously searching for operational models that can make existing assets commercially sustainable.
