NAC’s commercial plan fails

The commercial plan of Nepal Airlines Corporation (NAC), national flag carrier to earn annual NRs 8 Billion has become unsuccessful.

The corporation has become terribly unsuccessful to achieve its goal despite of changing leadership along with discontinuity of the old plan whereas new strategy could not make progress.

The liability of the corporation has reached NRs 2 Billion after the national carrier failed to pay loan amount taken to purchase wide body aircraft.

Tarani Dahal, Chairman of the Employee organization of NAC stated that the corporation could not carry out the business strategy as planned.

In 56th annual report, the auditor general estimated that the corporation will bear loss of 1 billion within 6 months after the wide body aircraft come to operation.

Nepal government appointed Madan Kharel as executive chairman of the corporation on September 16, 2018.

However, NAC could not achieve the progress after Kharel led the corporation for about 8 months.

Subash Dangi, Chairman of Trade Union of the corporation warned the leaders of NAC to improve the image of NAC.

He said that the corporation has been operating wide body aircraft in short routes knowing that the corporation operating flights at long-haul can earn more income and operating costs are less.

Likewise, Employees Provident Fund (EPF) and Citizen Investment Trust (CIT) have reported that the national flag carrier Nepal Airlines Corporation (NAC) has stopped paying the interest of loan taken from two organizations for procuring 2 A330s.

EPF and CIT have sought the help of government to aware the corporation about the interest payment. Ministry of Culture, Tourism and Civil Aviation (CAAN) has already talked with officials from NAC and loan providers.

However, NAC officials insisted that they are unable to pay the interest at the moment instead they require another NRs 20 Billion for running the organization smoothly.

The corporation hasn’t paid interest to EPF for the month of Poush and CIT for the month of Chaitra. As per the report, NAC is still to pay the pending interest of Nrs. 41 crore for its widebody aircraft and Nrs. 34 crore for narrow body A320s. The total interest amount remaining to be paid for EPF stands at Nrs 1.12 Billion whereas Nrs. 41 crore for CIT. The two loan providers are being skeptical towards NAC’s hesitation to pay the interest.

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