Nepal Airlines (RA, Kathmandu) has issued a Request for Proposals seeking a consultancy to conduct a due diligence audit of the carrier.
According to tender documents seen by ch-aviation, the stated goal of the audit is to "conduct a detailed and comprehensive examination of Nepal Airlines' financial and other related information with a view to assessing its condition and determine the potential business and various risks associated". The carrier also expects the auditor to carry out a market and asset valuation.
Separate technical and financial proposals are to be submitted in English. The selected consultancy is expected to commence the audit in early October 2019 and complete it within 90 days.
Nepal Airlines expects proposals by August 29, 2019.
According to online newspaper OnlineKhabar, the audit marks the relaunch of a search for a foreign partner for the struggling flag carrier.
In early July, the airline decided to formally employ international managers in an effort to improve its corporate governance which has been attributed to the airline's lengthy stay in the red. In December 2018, the government said it was prepared to sell a 51% stake in Nepal Airlines and would launch a due diligence audit procedure in preparation for such a step. Turkish Airlines, Ethiopian Airlines, flydubai, and Qatar Airways have all been linked to a potential investment in the airline.
Currently, Nepal Airlines is wholly state-owned but is saddled with over NPR40 billion Nepali rupees (USD360 million) in debt.
