By P.R. Pradhan
The Rastriya Swatantra Party (RSP) government, despite commanding a near two-thirds majority, appears to be following in the footsteps of its unsuccessful predecessors. Among the cabinet members, Minister for Civil Aviation, Tourism and Culture Khadga Raj Paudel appears to be one of the least successful. However, Prime Minister Balen Shah must bear ultimate responsibility for the failures of his ministers. Perhaps Shah may argue that problems accumulated over the past 36 years cannot be resolved overnight. Be that as it may, he cannot escape criticism for inefficiency and poor governance.
On the eve of the Dashain festival, both of Nepal Airlines Corporation’s wide-body aircraft were grounded. This demonstrates serious negligence on the part of the airline’s management and the government. The NAC management is well aware of the aircraft’s regular C-check maintenance schedules, yet it failed to manage them effectively. While other airlines operated their wide-body aircraft during the Dashain festival, Nepal’s national flag carrier was left without either of its wide-body planes. A landlocked country, Nepal has no viable alternative to maintaining and operating its national flag carrier. Nepal Airlines is the country’s aviation link with the wider world, connecting Nepal directly with other countries. Therefore, operating and strengthening the national flag carrier should be a top priority. Unfortunately, the minister has suggested leasing aircraft as a way out of the airline’s current crisis. Leasing, however, is not a comprehensive solution to its longstanding structural problems.
Numerous commissions have been formed in the past to recommend measures to improve the airline’s condition, but their reports and recommendations have largely ended up in the dustbin. Nepal Airlines, which operated relatively smoothly during the Panchayat era, is now in serious financial and operational distress. The reasons are well known. The government itself is adding to the airline’s financial burden by imposing high interest rates and taxes. At a time when commercial banks are restricted from charging interest rates above seven per cent, Nepal Airlines is compelled to pay interest at rates exceeding 10 per cent from the government institutions. Heavy customs duties while importing aircraft and spare parts further increase its operating costs. Under such adverse circumstances, it is difficult to imagine Nepal’s tourism sector flourishing to its full potential.
Around half a dozen aircraft remain grounded at Tribhuvan International Airport (TIA). The government appears incapable of resolving the problem, while Nepal Airlines continues to pay parking charges for these idle aircraft. According to sources, some of the grounded aircraft could be returned to operation, but vested interests are allegedly obstructing efforts to bring them back into service.
One Boeing 747 aircraft is among those grounded at TIA. It could potentially be converted into a cargo aircraft and operated by Nepal Airlines, subject to a technical and financial feasibility assessment. With the corporation facing a substantial deficit and lacking the resources to purchase new aircraft outright, making productive use of existing assets should be seriously considered.
According to aviation experts, Nepal Airlines needs at least 12 narrow-body and five wide-body aircraft to operate effectively in the international destinations and at least six STOL aircraft for operating them in remote domestic destinations. If the government is genuinely committed to revitalising the national carrier, it could explore lease-purchase arrangements through government-to-government agreements or provide appropriate guarantees to aircraft manufacturers and suppliers. Amending the existing procurement laws, granting greater operational autonomy to NAC management, and appointing competent officials on merit basis should be accorded the highest priority. The government could also reduce its financial burden by offering some of its shares to the public. Such measures could help put the national flag carrier back on the path to recovery.
Nijgadh Airport:
Tribhuvan International Airport is sometimes referred to as a “captain’s airport” because of the challenging terrain and demanding flying conditions in the Kathmandu Valley. Pilots without sufficient experience and the necessary qualifications are not permitted to operate flights into TIA. Therefore, the construction of Nijgadh International Airport, with multiple runways, is essential to expanding Nepal’s aviation capacity and supporting the growth of tourism.
In recent years, businesses have increasingly relied on large cargo aircraft to overcome various transportation challenges. However, TIA is not well suited to accommodating some of the largest cargo aircraft and meeting the country’s growing air freight requirements. The construction of Nijgadh Airport is therefore important not only for tourism but also for cargo transportation, trade and Nepal’s broader economic development.
To encourage regular flights to and from Pokhara and Bhairahawa airports, the government should introduce an incentive scheme that compensates airline operators for the additional costs and risks of operating these routes. A subsidy of at least Rs. 10,000 per passenger could be considered and incorporated into the ticket-pricing or incentive mechanism. In addition, value-added tax (VAT) on air passenger tickets should be waived to make air travel more affordable and encourage greater use of these airports.
Login to add a comment