KATHMANDU: Only three of Nepal Airlines Corporation's twelve aircraft are being utilized on foreign trips, and the airline is currently experiencing serious difficulty. An A330 plane that was scheduled to return to Italy for maintenance has been delayed for more than 50 days and is projected to take another two weeks to return, which is making the issue worse. The corporation may be dissolved within a year owing to its failure to pay bills, according to staff from the Ministry of Culture, Tourism, and Civil Aviation, if the scenario continues.
The decline of NAC can be traced back to political interference after 1990. The acquisition of six Chinese aircraft during former Prime Minister Pushpa Kamal Dahal's tenure led to further issues when these planes were grounded and have remained inactive since 2018. The annual insurance and parking fees for these grounded aircraft exceed Rs 200 million. Additionally, one Twin Otter aircraft has been idle for a decade, and two others have been out of service for a week, disrupting domestic flights. The international flight schedule is also affected, with cancellations to destinations like Japan and India.
A recent investigation into the NAC's management revealed significant procedural failures, including unauthorized maintenance of aircraft and a lack of proper planning for engine replacements. The report highlighted mismanagement and negligence, noting that the NAC's Executive Chairman Yubaraj Adhikari lacked aviation knowledge and failed to address critical maintenance issues. Political influence and bureaucratic inefficiency have been major contributors to the corporation's problems.
Financially, NAC is struggling with a Rs 34 billion loan, which has increased to Rs 49 billion due to unpaid interest. Despite attempts to address the situation, the corporation has only repaid about Rs 5 billion of its over Rs 10 billion liability in the past three years. The investigation report, which includes findings of significant financial losses and operational mismanagement, awaits implementation. The current government’s response and plans to resolve NAC's issues remain uncertain.
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