US-Bangla Ordered to Pay $2.7M for 2018 Kathmandu Crash

The District Court of Kathmandu has ordered US-Bangla Airlines to pay $2.74 million in compensation to families affected by the 2018 crash at Tribhuvan International Airport, which claimed 51 lives. The landmark ruling, delivered seven years after the tragedy, marks the largest compensation order in Nepal’s aviation history.

Background of the Incident

On 12 March 2018, a US-Bangla Airlines Bombardier Dash 8 Q400 aircraft crashed during landing, missing the runway and catching fire. Among the 71 passengers on board:

• 28 were Bangladeshi
• 22 were Nepali
• 1 was Chinese

The disaster resulted in the deaths of 51 individuals, including students and professionals.

Court Ruling Details

The Kathmandu court found US-Bangla guilty of gross negligence and failure to operate an airworthy aircraft. The court ruled that the airline must pay additional compensation beyond the standard $20,000 insurance amount provided by insurance companies.

The judgment also clarified that compensation is to be calculated based on economic, humanitarian, physical, and psychological factors.

Compensation Breakdown

Note: The amounts listed exclude the $20,000 insurance payout and are considered standalone compensation.

Legal History and Implications

In July 2019, families of the MBBS students filed a case against US-Bangla, rejecting the airline’s initial $50,000 settlement offer. After years of legal proceedings, the court ruled in favour of the plaintiffs.

Key points from the legal judgment:

• The ruling cited pilot’s mental condition and organisational mismanagement as primary causes.
• The court invoked the Warsaw Convention (1929) and Hague Protocol (1955) to determine liability. The Montreal Convention (1999) was not applicable as neither Nepal nor Bangladesh was a signatory at the time of the accident.
• The ruling distinguishes insurance from negligence compensation, affirming that insurance is a passenger right tied to the ticket, while compensation for negligence is separate and obligatory.

Future Appeal

US-Bangla’s spokesperson, Md Kamrul Islam, stated that the airline’s legal team will appeal to a higher court.

Meanwhile, lawyer Amrit Kharel, representing the families, said:

“This judgment confirms that insurance is not compensation. This is a landmark case for ensuring passenger rights and accountability in aviation.”

Observations and Precedent

The Kathmandu District Court noted that this judgment sets a precedent for future aviation incidents, stating that any deliberate negligence or grave misconduct by an airline may entitle victims to further compensation beyond insurance.

This is the first time in Nepal’s history that such a substantial compensation amount has been awarded directly to victims’ families following an aviation disaster.