NAC begins yet another fresh process to buy jets
KATHMANDU, OCT 16 -
Nepal Airlines Corporation (NAC) has begun another fresh process in its seemingly endless quest to buy aircraft. The move by the national flag carrier to expand its skeleton international fleet follows the Cabinet’s go-ahead on Aug 1 to procure narrow-body jets.
The airline’s board on Friday directed the management to conduct a route, market and business analysis before placing an order for the planes. The government has agreed to be guarantor for the planned purchase.
Meanwhile, the old procurement process that is stuck midway will be scrapped. “The government is positive about buying jets as soon as possible, but there can be legal complications if the old process is not terminated,” said a board member. “We are making our very best efforts to expedite the process.”
The board has decided to collect suggestions from legal experts and the stakeholders concerned on how the old process can be dumped.
On Oct 26, 2009, the NAC board had decided to purchase two aircraft from Airbus—an Airbus A320-200 (narrow body) and an A330-200 (wide body). However, as the purchase plan ran into dispute, the now defunct parliamentary Public Accounts Committee directed the government to cancel the deal on Dec 28, 2009.
Subsequently, on May 25, 2010, the Ministry of Finance directed the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) to scrap the purchase process. The plan was revived on Dec 29, 2011.
NAC has not been able to induct new aircraft into its fleet for the last two decades as every procurement effort has got mired in controversy. NAC is now down to five planes from 19 more than two decades ago. The first of NAC’s two Boeing 757s arrived in 1987.
MoCTCA officials said that operating 757s had become economically unviable due to their high maintenance costs compared to the revenue they generate. As political interference in NAC has been cited as the main reason for its ailing position, the government is currently engaged in appointing a managing director through free competition.
The Chief Executive Appointment Recommenda-tion Committee headed by the chairman of Public Service Commission has recommended three names to the Cabinet from among five shortlisted candidates after evaluating their presentations. This is the first time the government is appointing the chief at NAC through free competition. The Cabinet will appoint one from among the three for the top post.
