Prime Minister KP Sharma Oli has encouraged that the national flag carrier, Nepal Airlines Corporation (NAC)’s management be made useful and efficient and up-to-date.
PM Oli, who is additionally looking after the portfolio of the Ministry of Tradition, Tourism and Civil Aviation, issued directives for instantly forwarding the task of enlarging the NAC’s international destinations along with adept management of the national flag-carrier which is associated with the nation’s identity and prestige.
Addressing the 61st-anniversary function of NAC here today, he stated Nepal Airlines has a major role in also making the Visit Nepal Year 2020 campaign meaningful and stressed on producing an environment in which the NAC’s aircraft are operated within their full capability.
“The Corporation has all the powers to carry out its works. Boost your fleet and destinations. However, it is not good to only increase the variety of aircraft without any sound plan leading to the aircraft to remain grounded. I urge the management, come up with an appropriate way of enhancing the Corporation and then the government will decide what appropriate steps need to be taken. The kind of plan and destinations must be explored not only to service the debt but also that would make a profit,” PM Oli said.
The Prime Minister also urged the NAC management to pay serious attention towards the effective operation and improvement of services of the Corporation which remains as the suitable medium for the positive development of the economy of the entire nation.
NAC, which is currently at Rs 37 billion loss, has required Rs 20 billion with the government for the rise in its reserve budget. The representatives from the NAC’s employees associations had put an ask for purchasing 25 new aircraft within five years. It may be noted that many of the aircraft owned by NAC was not in operation owing to numerous reasons.
PM Oli, responding to it, had clarified that the government was not planning to procure new aircraft and keep them grounded until there was an effective management mechanism put in place in NAC.
“There must be a serious review of what caused NAC to suffer a loss of Rs 37 billion? The incumbent government is not carried away by any publicity. We have plenty of grounded aircraft.
They ought to be in the sky,” opined the PM.
According to PM, it was the duty of government to make NAC that is plagued by various challenges a success. “The government will give every possible support for NAC as it is a state-owned airlines corporation but it should be operated appropriately.”
He urged the NAC to make efforts for operating wide-body aircraft for long-haul flights. Based on him, in lack of an effective plan for expansion of destinations, NAC was at the economic crisis.
The PM saw, “NAC, in its 61-year-old history, has incurred loss worth Rs 37 billion. It is not a charity group. It should increase its business to sustain itself.”
Likewise, former State-Minister for Culture, Tourism and Civil Aviation Dhan Bahadur Budha stated works would be forwarded in a manner aiming at improving the capacity of NAC, expansion of international destinations and promoting tourism.
NAC executive Chairman Madan Kharel declared that the NAC was successful to establish itself as an internationally competitive air service provider company amid the heaps of challenges.
He also briefed the collecting that the achievement of anticipated profit became impossible as NAC resources, mainly aircraft in its possession, cannot be operated to the full power and the size of destination could not be extended. Based on him, procedures are on the progress to enlist Guangzhou of China and Riyadh of Saudi Arabia in the NAC destination soon.
NAC deputy general manager Ganesh Bahadur Chand said works were going ahead to increase the efficiency of the NAC with a good administration system and to escalate the list of destination.
NAC approved trade union leader Subash Dangi and NAC Employees Organisation chair Tarini Raj Dahal stressed on the need of improving the number of airplanes and destination points to improve the organization’s status.
NAC earns 7 .54 billion profit, users of international services improve largely
Based on the NAC report, till the first nine months of the current fiscal year, the NAC earned an income of Rs 7 .54 billion and this figure in the corresponding period last year was Rs 3 .85 billion. The variety of passengers using the NAC international flights during the first 11 months of the last fiscal year was 348, 528 whilst 569, 034 passengers traveled through its international flights during the corresponding period of current fiscal. This figure is 63 .5 percent more by the previous one. In 2018, NAC was the first airlines in the nation in terms of operating international flights. During this period, it provided its services to 493, 173 passengers and secured 11.7 percent portion in the aviation market. Currently, it operates international flights in eight destinations of six nations through two widebodies and two narrowbody aircraft while the domestic flights are conducted through nine aircraft and the flight service covers nine airports. It provides ground handling services to 30 foreign airlines firms.