Anand Acharya, London.

Nepal and the United Kingdom share a profound historical bond dating back over 200 years, anchored by the valour of the Gurkha soldiers and evolving into a vibrant partnership in trade, education, and tourism. As Nepal emerges as a premier adventure and cultural destination, the absence of direct flights between the UK and Kathmandu represents a missed opportunity for both nations. This business case, presented on behalf of Nepal’s official authorities, outlines the strategic and commercial imperatives for British Airways (BA) to launch direct London Heathrow (LHR) to Tribhuvan International Airport (KTM) services.
Key highlights include:
• Robust Demand: A Nepalese diaspora of 100,000–150,000 in the UK, 4,000–5,000 Nepalese students, and 32,000–40,000 British tourists annually, generating potential for 15,000+ round-trips and £9.75M–£12.615M in revenue for BA.
• Commercial Benefits: High load factors (70–80%) driven by seasonal peaks, premium cabin yields from tourists and professionals, and cost efficiencies via BA’s Boeing 787-8 fleet.
• Strategic Advantages: Enhanced bilateral ties, tourism growth (Nepal’s arrivals up 5% in April 2025 to 116,490), and positioning BA as a pioneer in South Asian connectivity.
• Social and Cultural Ties: Deepening the legacy of Gurkha loyalty, fostering people-to-people exchanges, and supporting sustainable development.

By initiating direct flights, BA can capture an underserved market, boost yields, and contribute to Nepal’s economic resurgence while honouring our shared heritage. We invite BA to partner with us for mutual prosperity.

Introduction: A Timeless Alliance Between Nepal and the UK
The relationship between Nepal and the United Kingdom is one of the oldest and most enduring in modern diplomacy, formalized in 1816 with the Treaty of Sugauli following the Anglo-Nepalese War. This pact not only ended hostilities but laid the foundation for a unique alliance, epitomized by the recruitment of Gurkha soldiers into the British Army—a tradition that continues to this day, with over 30,000–50,000 Gurkha veterans and families residing in the UK. The Gurkhas, renowned for their bravery and loyalty, have served in every major British conflict since the 19th century, symbolizing the unbreakable bond between our peoples.

In 2025, as we mark over two centuries of friendship, Nepal seeks to elevate this partnership through enhanced aviation connectivity. Direct flights from the UK to Kathmandu would bridge geographical distances, strengthen cultural exchanges, and unlock economic opportunities. Nepal’s government, via the Nepal Tourism Board (NTB) and CAAN, views BA as the ideal partner—leveraging your global reputation for premium service and operational excellence to pioneer this route.

Market Analysis: Untapped Passenger Demand
Nepalese Diaspora in the UK
The Nepalese community in the UK, estimated at 100,000–150,000 (including second-generation and naturalized citizens), forms a core demand base for home-going traffic. Concentrated in London and southeast England, this diaspora includes Gurkha families who travel frequently for family reunions, festivals like Dashain and Tihar (October–November), and holidays. With no direct flights, they endure 13–20-hour journeys via hubs like Doha or Dubai, creating frustration and opportunity for BA.

Nepalese Students in the UK

Over 9,000 Nepalese students were granted UK study visas in the year ending March 2024, with a 63% growth in enrollment, positioning Nepal as the UK’s sixth-largest source of international students. By 2025, this figure is projected at 4,000–5,000 active students, many traveling home during summer and winter breaks. Price-sensitive yet loyal, they favor convenient routes—direct flights could capture 20% of this segment, adding seasonal demand.
British Tourists to Nepal

Nepal’s tourism sector is booming, with 577,000 international arrivals in the first half of 2025, a record high. The UK ranks among the top sources, with 57,554 visitors in 2024 (up 8.9% year-on-year) and projections of 32,000–40,000 in 2025. Drawn to Everest treks, UNESCO sites, and spiritual retreats, British tourists seek premium experiences. Direct flights (9–10 hours vs. current connections) would boost arrivals by 20–30%, as convenience is a key factor in destination choice.
Total Potential Market: 110,400–167,000 passengers annually, supporting 15,000–27,000 round-trips (10–17% capture rate for BA).

Commercial Benefits: High-Yield Opportunities for BA

Revenue Projections
Launching 3 weekly direct flights using BA’s Boeing 787-8 (200–220 passengers at TIA due to MTOW restrictions of ~200,000 kg) could yield £9.75M–£12.615M annually at a 70% load factor (180 passengers/flight). Breakdown for 15,000 round-trips (60% diaspora, 20% students, 20% tourists):
• Economy (75%, £600/trip): 11,250 trips = £6.75M (primarily diaspora/students/budget tourists).
• Premium Economy (18%, £1,200/trip): 2,700 trips = £3.24M (mid-tier diaspora/tourists).
• Business Class (7%, £2,500/trip): 1,050 trips = £2.625M (affluent tourists/diaspora professionals). Tourists elevate premium yields, pushing average fares to £840 and revenue toward £12–15M with 75–80% load factors during peaks.
Load Factor and Operational Efficiency
• 70% Baseline Load Factor: Achievable with diaspora (festival peaks) and tourists (trekking seasons: October–November, March–April).
• Cost Savings: Direct 9–10-hour flights reduce codeshare dependencies (e.g., with Qatar Airways) and avoid delays from hubs. TIA’s 24-hour operations (post-March 2025) enable flexible scheduling, minimizing monsoon impacts (June–August).
• Break-Even: Reached in 1–2 years at 70% load, with MTOW-based fees offset by the 787-8’s fuel efficiency.
Competitive Edge
Currently, 11 airlines serve UK–Kathmandu via hubs (e.g., Qatar Airways via Doha, Emirates via Dubai), but no directs exist. BA can differentiate with seamless service, capturing price-sensitive economy (matching Air India’s £612) and premium segments (leveraging your Executive Club for Gurkha loyalty).

Strategic Benefits: Advancing Bilateral Prosperity
Tourism and Economic Growth
Direct flights align with Nepal’s goal of 1.5 million arrivals by 2025, boosting GDP (tourism contributes 6.7% or $471M annually). For BA, this opens Nepal as a gateway to South Asia, with potential codeshares to Pokhara or Gautam Buddha airports. Incentives from CAAN include reduced landing fees for new routes and marketing support from NTB.

Enhanced Connectivity and Partnerships
TIA’s upgrades (expanded capacity to 7M passengers, improved navigation) ensure reliability for BA’s operations. A BA partnership could include joint promotions, visa facilitation for British tourists, and sustainable tourism initiatives—positioning BA as a leader in eco-friendly aviation amid Nepal’s Himalayan conservation efforts.

Social and Cultural Ties: Honouring Shared Heritage
The Gurkha legacy is the heartbeat of UK-Nepal relations, with Gurkhas serving as cultural ambassadors. Direct flights would facilitate family visits, cultural festivals (e.g., Nepali New Year in London), and educational exchanges, fostering intergenerational ties. Nepal’s diverse heritage—Buddhist stupas, Hindu temples, and vibrant festivals—resonates with the UK’s multicultural society, promoting mutual understanding and social cohesion.
In an era of global challenges, this route symbolizes resilience and friendship, supporting Nepal’s development goals (e.g., remittances from diaspora) and the UK’s post-Brexit outreach to Asia.

Conclusion and Call to Action
Direct UK-Kathmandu flights represent a win-win: commercial success for BA through untapped demand and premium yields, and strategic advancement for Nepal via tourism and ties. With a ready market of over 110,000 passengers, proven feasibility, and our shared history, now is the time to act.
Nepal’s authorities commit to facilitating regulatory approvals, marketing collaborations, and incentives. We propose a joint working group to explore launch timelines—let’s turn this vision into reality and soar together.

(Anand R Acharya is airlines, aviation and travel enthusiast with a 40 years of experience in national and international domain)