CAAN grounds Guna Airlines

KATHMANDU: Civil Aviation Authority of Nepal (CAAN) has grounded all the aircraft of Guna Airlines which is suffering from a serious financial crisis.

The aviation regulator took the decision as the airline had been failing to pay its pilots and other staffers, and also clear its dues to other parties.

CAAN wrote a letter to Guna Airlines on Monday afternoon instructing the domestic carrier to ground all its flights.

“We took the decision as there are fears that the eroding financial situation of the company could compromise aviation safety,” CAAN Spokesperson Jagannath Niraula said.

The airline has a fleet of five Jetstream aircraft.

Guna Airlines was started in 2009 by Guna Group having business interests in multiple sectors. The main promoter of the group is Rajendra Shakya. The airline, however, ceased operations in 2009 after the group fell into a financial crisis. The airline was then acquired by helicopter operator Simrik Air which renamed it and operated fixed-wing services under Simrik Airlines.

Guna Group, however, revived its airline business with Guna Airlines taking to the skies again in September, 2021.