NAC concludes it needs more aircraft to stay in business
Concluding that the lack of aircraft is the number one hindrance on its path of survival and progress, the national flag carrier Nepal Airlines Corporation (NAC) has determined to buy at least one wide body aircraft in immediate future.
In a white paper of the corporation issued on Sunday, the NAC has pointed out the lack of aircraft as a major cause for its stagnation.
At the program organized to release the white paper, Minister for Culture, Tourism and Civil Aviation Pradip Gyawali and Tourism Secretary and NAC board chairman Madhav Prasad Ghimire expressed their commitment to carry out reforms in internal management along with pursuing the purchase of new aircraft including one wide body, which can operate in European sector, and another narrow body to operate at regional sectors.
"The need for a wide body aircraft to operate up to Europe and a medium size aircraft to operate in regional sectors has been urgently felt," said Ghimire.
A task force led by deputy general manager of NAC, K.B. Poudyal has been formed to study cost-benefit situation and recommend purchase of new aircraft within a month. At present, the NAC has been operating with the help of two ageing Boeing 757. It has cut down its operation to European and many other sectors due to lack of aircraft.
Tourism entrepreneurs have been demanding that the government revitalize the national flag carrier. They have said that a strong national flag carrier will go a long way in boosting tourism. Currently, many overseas tourist groups are said to have cancelled their planned trip to Nepal due to lack of airplane seat.
Meanwhile, speaking at the program on Sunday, general manager of NAC Gautam Das Shrestha informed that the corporation has still not been paid around Rs 48.6 million that were spent during King Gyanendra's visit to African countries last year.
According to its white paper, the NAC has total assets of Rs 7.95 billion and total liabilities of Rs 1.63 billion. It has two Boeing, and 4 Twin Otters that are in operation. The total number of staffs is 1509. The NAC earned profit of Rs 340.9 million in 2005/06. The NAC bears losses of Rs 180 million annually by operating in remote sectors whereas it earns income of Rs 600 million a year by providing ground-handling services to 13 international airlines that operate in Kathmandu. nepalnews.com sd Dec 04 06
