A Nepalese court orders US-Bangla Airlines to pay $2.74M in compensation for the 2018 Kathmandu crash, marking a landmark decision in South Asian aviation law.
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| Seven years after the deadly crash of Flight 211, Nepal’s court delivers a $2.74M ruling against US-Bangla Airlines, redefining airline accountability in the region. Image: CH |
Kathmandu, Nepal — July 26, 2025:
In a landmark verdict for South Asian aviation law, the Kathmandu District Court has ordered US-Bangla Airlines to pay $2.74 million in compensation to the families of victims killed in the crash of Flight 211 in March 2018. The scheduled flight from Dhaka to Kathmandu crashed during landing at Tribhuvan International Airport, claiming 51 lives out of the 71 people onboard.
The court found the Dhaka-based airline guilty of gross negligence and wilful misconduct, setting a rare legal precedent in Nepal, where civil aviation litigation has historically resulted in minimal or no compensation. The verdict follows a seven-year legal battle and represents one of the most significant aviation liability rulings in the region to date.
Presided over by Judge Diwakar Bhatta, the court awarded varying compensation amounts to 17 victims’ families, in addition to the $20,000 per family already paid under mandatory international aviation insurance obligations. The ruling excludes these insurance payments and instead focuses on actual damages, which were determined based on financial loss, emotional trauma, and human suffering.
Among the awarded were families of 13 MBBS students, with individual compensation ranging from $170,000 to $179,000. Dr. Bal Krishna Thapa, a prominent neurosurgeon, was awarded $277,548, while the family of a nurse and a severely injured survivor were granted lower but significant amounts. The ruling also emphasized that US-Bangla’s early settlement offer of $50,000 per victim was inadequate and rejected by most families, who demanded full legal accountability.
The court based its decision on the Warsaw Convention of 1929 and its 1955 Hague Protocol amendment, as neither Nepal nor Bangladesh had ratified the more modern Montreal Convention at the time of the crash. Legal experts note that the Montreal Convention—which Nepal adopted later in December 2018—offers broader protections and higher compensation ceilings, but was not applicable retroactively.
Court officials confirmed that the airline had insurance coverage of $107 million, including $100 million in passenger liability, underwritten by Bangladeshi insurers. Despite this, the court concluded that financial responsibility could not be limited to insurance alone, especially in light of the pilot's impaired mental state and failure to operate the aircraft safely—factors deemed evidence of wilful misconduct.
Lead attorney Amrit Kharel, who represented several families, said the case highlights the legal distinction between insurance and compensation, noting that passenger insurance is often built into ticket prices and does not absolve airlines from further liability. “This ruling is a victory for justice, accountability, and human rights,” Kharel said. “It proves that airlines cannot hide behind insurance clauses when negligence is involved.”
Families of the victims, while expressing mixed feelings over the compensation amount, welcomed the ruling as a long-awaited step toward justice. Bidhur Man Shrestha, whose daughter Angila was among the deceased, said, “We fought for years not just for money, but for truth. This is recognition of our loss and the airline’s fault.”
Legal analysts believe this judgment will have a far-reaching impact on how airline accountability is enforced in Nepal and beyond. By opening the door to unlimited compensation in cases of proven negligence, it could prompt stricter oversight of aviation safety standards, pilot training, and operational protocols.
The full text of the ruling is expected to be published soon, offering further detail on the court’s reasoning and the methodology behind its compensation calculations. Nonetheless, the decision already marks a major milestone in the intersection of international aviation law and passenger rights in South Asia.