NAC to operate flights at Japan and China in 2019

In the context of hot discussion on the irregularities of Airbus A330 procurement process going on within National flag carrier, Nepal Airlines Corporation (NAC) itself said that the internal management and service reinforcement has carried out at the war level.

After 55th annual report of the Auditor General reflected the error in wide body purchase process, this topic has reached to Parliamentary Committee. Likewise, the corporation has given clarification in the aircraft procurement process. The Medias have published different news about the corporation on the aircraft procurement process nearly for a month.

A statement issued by NAC on a Press conference on November 15 showed the profit, loss, capital and long-term debts of NAC that provided a clear hint of crisis in NAC.

According to the statement, long-term debt has reached around NRs. 37 Billions 580 Millions and the corporation has loan of more than NRs. 12 Billions from Citizen’s Investment Fund (CIF) at 10.5 per cent interest. The annual interest of loan only is more than NRs. 3 Billions. The sanctioned loss of the corporation has reached NRs.2 Billions 600 Millions and the authorized capital is NRs 300 Millions.

There is a lot of criticism regarding error in the aircraft procurement process, lacking commercial planning and A330 being grounded.

Leaving all the problems and bad vibes, the corporation has been planning to operate flights to new destinations by A330 aircraft and planned program for effective strategies to fight the market demands. A330 is preparing to operate in Seoul, South Korea and Riyadh, Saudi Arabia within a few months.

Madan Kharel, newly appointed executive chairman of NAC stated that the required process has been started by aiming to operate flights at Osaka, Japan from February and Guangzhou, China from March.

He also informed that the corporation will be operating 3 flights weekly from the first week of February in Osaka, Japan whereas after one month, it will also operate 3 flights weekly in Guangzhou, China. “ The required manpower and staffs will be arranged for Japan flights within 15 days”, he added.

According to the corporation’s plan, the wide body will be operating scheduled flights at Narita International Airport near Tokyo, Japan within next 6 months. Executive chairman Kharel said that the corporation is preparing to conduct flights with its wide body for 15-16 hours daily to Japan as well as long haul. Kharel said that the financial condition of NAC is satisfactory as the corporation had been doing business worth NRs. 25 Billions after adding 2 wide body aircraft and the the corporation had gained additional NRs. 25 Billions.

There is a financial problem because the corporation is not being able to operate flights at new destination he added. In the process of conducting commercial flights at new destination, Kharel convinced that with next 6 months, NAC is going to at a state of improvement.

Krishna Prasad Devkota, secretary of Ministry of Culture, Tourism and Civil Aviation, who was also a member of corporation board of committees, said that wide-body is preparing to operate at long haul destination with commercial plans. He said that wide-body will operate to Japan, China, South Korea, Riyadh and to other European countries very soon. According to Secretary Devkota, at present Wide body is operating for 6-8 hours.

The corporation has been operating for 3 days at Hong Kong, Bangkok for 4 days and 2 days at New Delhi.

The corporation operates international flights with its 2 wide body A330 aircraft, 2 narrow body A 320 and 1 Boeing aircraft. Similarly, for domestic flights, the corporation operates with its 3 Twin-otter, 2 MA-60, 4 Y-12e aircraft. The corporation has been operating to 8 international destinations and 22 domestic destination.

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