Nepal's Guna Airlines has failed the financial audit conducted by the Civil Aviation Authority of Nepal (CAAN). CAAN recently conducted an audit of the airline after receiving an intimation that the airline has not paid its pilots and employees for over three months along with the authority’s service fee.
“Financial conditions are the backbone of the aviation industry. However, the audit we conducted a few days ago showed that the financial condition of the company is weak,'' Jagannath Niraula, spokesperson of CAAN, said, "We have already written to the company."
The airline has to pay over four million rupees to the authority as per CAAN.
If the airline fails to pay the dues, the airline won’t be able to sell its five aircraft that have been grounded for over a month now.
The airline claims that it plans to sell its five aircraft and bring in new, large and fuel-efficient aircraft.