Nepal Court Holds US-Bangla Airlines Fully Liable for 2018 Kathmandu Crash, Orders $2.74 Million Compensation | aviationbizz.com
Bangladeshi carrier US-Bangla Airlines is being subjected to unlimited liability for the occupants killed in the 2018 crash at Kathmandu airport, according to the Nepal’s court verdict released last week.
A Nepal court has ruled that Bangladeshi carrier US-Bangla Airlines bears unlimited liability for passengers killed in the 2018 aircraft crash at Kathmandu’s Tribhuvan International Airport, marking a historic first in Nepal’s aviation legal history.
In its detailed verdict released last week, the Kathmandu District Court held that the airline’s liability extends beyond internationally prescribed limits due to gross negligence and reckless conduct by the flight crew.
The accident occurred on March 12, 2018, when a scheduled US-Bangla Airlines flight from Dhaka to Kathmandu veered off course during landing. The Bombardier Q400 aircraft burst into flames upon impact, killing 51 of the 71 people on board. The victims included 22 Nepali nationals, 28 Bangladeshis, and one Chinese citizen. The tragedy remains the deadliest crash involving a Bangladeshi airline and the most fatal accident involving a Dash 8 Q400 aircraft.
While acknowledging the airline’s limited liability under the Warsaw Convention (1929) and its Hague amendment (1955), the court ruled that Article 25 applies in this case. This provision removes liability limits where damage results from intentional, reckless, or grossly negligent acts.
Judge Diwakar Bhatta, who issued the ruling on July 20, 2025, concluded that the crash resulted from pilot negligence and reckless decision-making, making the airline fully liable for compensation.
The court cited findings from flight data and cockpit voice recorders, which showed pilot fatigue, mental stress, confusion during landing, violations of standard operating procedures, and impaired judgement, despite the aircraft being technically sound.Excluding the standard $20,000 insurance payout already received by each family, the court ordered US-Bangla Airlines to pay $2.74 million (Rs378.6 million) to 17 affected families.
The compensation awarded by the court varied depending on the victims’ age, profession and dependency status. Families of MBBS students received between $170,000 and $179,000 each, while the family of a neurosurgeon was awarded $277,548. The family of a Himalaya Airlines employee received $107,170, and compensation for a 67-year-old nurse was fixed at $45,301. Survivor Dr Samira Byanjankar, who sustained serious injuries in the crash, was awarded $44,290. All amounts exclude the insurance payment already made.
The court rejected the airline’s arguments that compensation should be capped at $20,000 and that Nepali courts lacked jurisdiction. It ruled that Nepal was the destination of the passengers and that the crash occurred within Nepali territory, granting the court full jurisdiction. The ruling also referenced international precedents and provisions under the Montreal Convention (1999), reinforcing that airlines bear unlimited liability when negligence is proven.
Nepal has recorded 70 air crashes over the past seven decades, resulting in nearly 1,000 fatalities, yet no airline had previously been held financially accountable in court. After a seven-year legal battle, the court concluded that US-Bangla Airlines’ wilful misconduct and failure to operate under required safety standards caused the tragedy, setting a major legal precedent for aviation accountability in Nepal.
Video Courtesy: FL360aero
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