A committee set by the government to serve changes in Nepal Airlines Corporation (NAC) has urged the corporation to quickly add two Airbus 320 aircraft to fly to newly-identified destinations.
A former secretary at the Ministry of Culture, Tourism and Civil Aviation Sushil Ghimire stated it was essential to discover suitable destinations through sector analysis.
“The additional aircraft will add flight frequency in the destinations where the NAC is making a profit, and operate flights to NAC-identified destinations Riyadh, Seoul, Beijing, Shanghai, Tokyo, and Australia where the passenger flow is high,” Ghimire told.
A report done by the committee on Wednesday has advised the NAC to get aircraft direct from the manufacturer as it preserves clarity and makes the work more comfortable. The report also suggests the NAC incorporate a representative of the government or the Ministry of Finance in the NAC’s board while arranging to secure aircraft.
The report stated that the corporation’s reliability grew weak and its destinations reduced as of the government’s inability to compromise on getting aircraft, apart from the lack of material.
It stated that the NAC should have done preparation for the new system before moving to Airbus from Boeing. It should have amplified manpower including the pilot, engineer and other technicians with the selection of appropriate targets, the report stated, adding that the NAC seemed lagging in this regard.
While the presentation of the report, highlighting the value of sector inquiry, Ghimire told less occupancy price in the flights was creating the losses.
“Even if the NAC followed the recommendations provided by us, we cannot project it to make profits right after the implementation,” stated Ghimire.
Ghimire added, “Unless the national flag carrier becomes strong in itself, it will be hard for the country’s tourism sector to develop.”
The committee resolved that the public enterprise should resolve itself as a company and distribute 5% share to the public.
Tourism Minister Yogesh Bhattarai had established the five-member committee on August 7 to begin changes in the national flag carrier.
Former Secretary of the ministry of tourism, Sushil Ghimire had started the team of chartered accountant Subodh Kumar Karna, management consultant Dim Prasad Poudel, captain Sudhir Sumsher Rai, and the tourism ministry’s joint secretary Buddhi Sagar Lamichhane.
The team was given the responsibility of investigating earlier reports submitted to develop the NAC’s overall circumstances, classifying and analyzing the NAC’s legal and management capabilities. The team was also mandated to act a work-plan for quick and long term growth in the corporation.
The corporation has a total loss of Rs 5.21 billion and has a loan amount of Rs 40 billion. The government’s stake in the corporation is at Rs 31.04 billion.
Read more related articles about Business articles: Click Here
Follow us on Facebook and stay up to date with the latest content