Kathmandu court orders US-Bangla Airlines to pay full compensation for 2018 crash

Kathmandu court orders US-Bangla Airlines to pay $2.74 million compensation to families of 2018 Flight 211 crash victims. This historic verdict holds the airline responsible for gross negligence and sets a new precedent for aviation safety in Nepal.

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Rabindra Bhattrai
Rabindra Bhattarai is a respected finance expert, widely known for his contributions to Nepal’s capital market through research, and authorship on stock market investment and financial...
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The Kathmandu District Court has ruled that US-Bangla Airlines must pay $2.74 million in compensation to the families of the victims of the 2018 Flight 211 crash. The amount excludes the $20,000 insurance payout already given to each family. The tragic crash took the lives of 51 people.

What Happened?

Flight 211, carrying 71 passengers and crew, crashed while landing at Tribhuvan International Airport, killing 51 people. Among the victims were 22 Nepalis, 28 Bangladeshis, and one Chinese national. The Bombardier Q400 aircraft burst into flames on impact, making it the deadliest accident involving a Bangladeshi airline and the deadliest for this aircraft model.

This is the first time in Nepal’s aviation history that families have won such a large compensation case. Nepal has had about 70 air crashes over seven decades, causing nearly 1,000 deaths, but no airline had been held legally responsible before.

Court finds airline guilty

After a seven-year legal battle, the court found US-Bangla Airlines guilty of gross negligence and willful misconduct. The judgment highlights the pilot’s questionable mental condition and the airline’s failure to fly the aircraft safely, despite it being airworthy.

Detailed compensation for victims and survivors

The court awarded specific compensation amounts to individual victims’ families. For example, each of seven MBBS students lost in the crash will receive around $170,000, excluding insurance. Other victims, including a neurosurgeon, a nurse, and an airline employee, also received compensation based on factors like financial loss and emotional suffering.

Survivor Dr. Samira Byanjankar, who suffered serious injuries, was awarded over $44,000, again excluding insurance.

At the time, US-Bangla had $107 million insurance coverage, including $100 million for passenger liabilities. However, the court clarified that insurance payments and legal compensation are different. Compensation is the airline’s responsibility for negligence and cannot be replaced by insurance alone.

Many families initially considered accepting a $50,000 settlement per victim offered by the airline but chose to pursue legal action instead, seeking full and fair compensation.

Ruling sets new precedent for airline liability in Nepal

This landmark verdict allows victims or their families to sue airlines for unlimited liability in cases of willful misconduct or gross negligence. It is expected to push airlines in Nepal and the region to improve safety standards, training, and maintenance to avoid costly penalties.

The court relied on the Warsaw Convention and its Hague Protocol, which regulate airline liability for international travel. Nepal had not yet adopted the Montreal Convention—the newer legal framework—when the crash occurred.

Families feel justice has been served but pain remains

Bidhur Man Shrestha, father of one victim, said,

“We are still not happy with the compensation, but at least we won the case. We got justice after seven long years.”

Advocate Amrit Kharel, who represented the families, said this decision is a “historic win for human rights” and sends a strong message about airline accountability worldwide.

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Rabindra Bhattarai is a respected finance expert, widely known for his contributions to Nepal’s capital market through research, and authorship on stock market investment and financial management.
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