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Nepal Court Orders US-Bangla Airlines to Pay $2.74 Million Compensation for 2018 Kathmandu Crash Victims

Nepal court orders US-Bangla Airlines to pay $2.74M to 2018 Kathmandu crash victims’ families, marking a legal milestone in aviation accountability.

Nepal Court Orders US-Bangla Airlines to Pay $2.74 Million

In a landmark ruling that may redefine aviation accountability in Nepal, the Kathmandu District Court has reportedly ordered US-Bangla Airlines to pay $2.74 million (approximately NPR 378.6 million) in compensation to the families of victims who died in the 2018 Tribhuvan International Airport crash. This decision marks a rare legal victory for families affected by air disasters in South Asia and sets a significant precedent for aviation litigation in the region.

Background: The 2018 Kathmandu Aviation Tragedy

The crash occurred on March 12, 2018, when Flight BS211, a Bombardier Dash 8 Q400 operated by US-Bangla Airlines, crashed during landing at Tribhuvan International Airport (KTM) in Kathmandu, Nepal. The aircraft, en route from Shahjalal International Airport (DAC) in Dhaka, Bangladesh, carried 71 people on board.

As the flight approached Kathmandu, the plane deviated from the runway path, veered out of control, and crashed into a football field adjacent to the airport, erupting into flames. Despite emergency response efforts, 51 people lost their lives, including 22 Nepalis, 28 Bangladeshis, and one Chinese national. The disaster remains one of Nepal’s deadliest civil aviation accidents in recent history.

Court Orders Compensation for Families

According to The Kathmandu Post, the Kathmandu District Court ruled in favor of 17 plaintiffs, including families of 16 deceased passengers and one survivor, ordering US-Bangla Airlines to pay a collective $2.74 million. Each affected family had previously received $20,000 through initial insurance settlements. However, the new court-mandated compensation is viewed as a more substantial form of justice for victims’ families who have been fighting for accountability for over six years.

The case was overseen by Judge Diwakar Bhatta, while court official Deepak Kumar Shrestha noted that a formal written verdict would be issued in the coming days. The lawsuit was filed under Nepal’s Civil Code, which permits damage claims for wrongful deaths, even in international aviation matters.

US-Bangla Airlines Responds with Denial

In response, US-Bangla Airlines has publicly denied any formal notification regarding the verdict. The airline’s spokesperson, Kamrul Islam, labeled the news reports as “false and fabricated,” adding that the airline’s legal team is investigating the matter. He urged media outlets not to spread unverified information.

Nonetheless, US-Bangla has not yet stated whether it will appeal the ruling. Under Nepalese legal procedures, the airline has the right to file appeals with the High Court and eventually the Supreme Court of Nepal.

A Legal Milestone in Nepal’s Aviation History

If the court ruling stands unchallenged or is upheld by higher courts, it will be the first time in Nepal’s legal history that a foreign airline is held financially liable to this extent for an aviation accident. It represents a historic shift in the country’s approach to airline accountability.

Previously, compensation in aviation-related deaths was mostly handled through insurance companies or international treaties such as the Montreal Convention, without formal judicial intervention. This decision by a Nepalese court to order direct and significant compensation underscores the country’s evolving legal approach to aviation safety and corporate responsibility.

A Shift in Global Aviation Liability Precedents

The implications of this case extend beyond Nepal. Legal experts suggest that this ruling could influence courts in other developing nations, where aviation law remains underdeveloped and where victims’ families often struggle to receive adequate compensation.

This landmark decision may also lead to increased scrutiny of airline operations in South Asia, especially for carriers operating regional routes with limited oversight and variable safety standards. Moreover, airlines may be prompted to re-evaluate safety protocols, pilot training, and airport coordination practices to avoid similar incidents and legal consequences in the future.

The Aftermath and Continued Pursuit of Justice

Survivors and the families of victims have expressed a sense of vindication after years of waiting. Many of them have campaigned tirelessly for justice, working with Nepalese legal authorities and aviation advocates to ensure the tragedy wasn’t forgotten.

Tribhuvan International Airport, where the accident occurred, has since implemented additional runway safety measures and improved pilot communication protocols, following recommendations from Nepal’s Aircraft Accident Investigation Commission (AAIC) and Bangladesh’s Civil Aviation Authority.

Meanwhile, the compensation case may still face delays if US-Bangla Airlines appeals the district court ruling. Until the verdict is finalized, any financial relief remains uncertain. However, the case has already achieved something more profound: a shift in the way aviation tragedies are legally addressed in Nepal.

Travelers and Airlines Must Stay Informed

As air travel in South Asia continues to expand, incidents like the US-Bangla crash highlight the importance of international aviation safety compliance and legal frameworks that support victims and their families.

Passengers are encouraged to understand their rights under global conventions such as the Montreal Convention, which governs airline liability in international travel and mandates compensation for injury or death.

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