Overview
Domestic and international air passenger movements have increased significantly over the past decade, putting stress on Nepal’s civil aviation infrastructure. Kathmandu’s Tribhuvan International Airport (TIA), currently the country’s main international airport which has only one runway, handled 33,247 international flights in 2024, an increase of 5.68 percent. Pre-COVID, the airport handled approximately 400 movements per day (take-off and landing) and at peak times exceeded its stated maximum capacity of 35 flights per hour. The Ministry of Culture, Tourism and Civil Aviation and the Civil Aviation Authority of Nepal (CAAN) are planning civil aviation infrastructure improvement projects in Kathmandu and throughout the country; these are valued at around $1.3 billion over the next fifteen years.
Nepal is prioritizing the tourism sector, which has significant potential for growth. However, the sector’s trajectory will depend on maintaining traveler confidence following the September 2025 protests. Prior to the protests, domestic airlines planned to expand or replace aging fleets, which could increase demand for aeronautical parts, aircraft maintenance equipment, and related services. Relatedly, domestic airports may need to import additional ground support and airport equipment to accommodate fleet expansion, presenting potential opportunities for U.S. companies to supply aviation products, technology, and services.
Table: Exports/Imports of Airport and Ground Support Equipment (U.S. $ thousands)
2021 | 2022 | 2023 | 2024 | |
| Total Local Production | n/a | n/a | n/a | n/a |
| Total Exports | 2 | 319.4 | Not Available | Not Available |
| Total Imports | 22,477 | 18,908 | 31,864 | 51,836 |
| Imports from the US | 9,141 | 4,458 | 5,376 | 18,206 |
| Total Market Size* | 22,475 | 18,587 | 31,864 | 51,836 |
(total market size = (total local production + imports) - exports)
Total Imports: UN Comtrade Database
Imports from U.S.: UN Comtrade Database
Civil Aviation Authority of Nepal
Ministry of Culture, Tourism and Civil Aviation
Leading Sub-sectors
The best sub-sector prospects for U.S. businesses include aircraft spare parts and sales of small aircraft. As domestic airlines seek to expand regionally and increase their fleets, prospects for aircraft sales should pick up.
Opportunities
Private airlines in Nepal mushroomed in the early 1990s, providing opportunities for the sale of new and used short-haul, turboprop passenger aircraft. U.S. businesses are advised to target the aircraft spare parts market by establishing direct links with domestic airline operators in Nepal. Nepal’s private airlines, which previously limited their operations to the domestic sector, are gradually entering international operations.
Resources
Civil Aviation Authority of Nepal
Ministry of Culture, Tourism and Civil Aviation