Nepal aviation: 27 foreign airlines dominate as tourism recovers 

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Competition in Nepal’s international market is intensifying significantly as Nepal Airlines pursues expansion after taking delivery of its first widebody aircraft. The government-owned flag carrier recently added two A330-200s, which will be used to add capacity on several of its eight existing international routes as well as to launch services to Japan, Korea and Saudi Arabia.

Over the past three years tourism has expanded rapidly in Nepal, recovering from a devastating earthquake that struck Kathmandu in Apr-2015. However, Nepal Airlines has not expanded since adding two A320s in 1H2015.

Foreign airlines dominate the Nepalese market, accounting for 90% of international passenger traffic. While Nepal Airlines is eager to improve its market share and benefit from the tourism boom, it will have to overcome stiff competition from foreign airlines, which enjoy large economies of scale and strong brands. 

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