The Nepal Airlines Corporation (NAC) Reforms Recommendation Committee has advised that the national flag carrier needs more financial investment to enhance its competitiveness. Led by former Nepal Rastra Bank Governor Dipendra Bahadur Chhetri, the committee submitted its report to the Minister for Culture, Tourism, and Civil Aviation, Sudan Kirati, emphasizing the necessity of additional capital for the NAC’s improvement.
The committee, composed of CA Piyus Anand, Captain Om Gurung, Tikaram Rai, and Sahara Neupane, highlighted that various governments often inject capital into international airline companies during special circumstances. In light of this, the government should consider investing more capital in the state-owned corporation to make it competitive with other players in the industry.
Presently, the NAC is facing a serious crisis with a negative net worth of Rs 4.9 billion as of fiscal year 2078/079 BS. The NAC’s total debt stands at Rs 48.3 billion. The report recommends that the NAC should explore avenues for obtaining concessional loans and expand its operations to reduce its debt.
Additionally, the committee suggests that the Chief Executive of the NAC should be selected through an open competition conducted by a committee led by the Vice-Chairman of the National Planning Commission. The adoption of modern management systems through management contracts is also proposed.
Furthermore, the committee suggests that the NAC could transition to a company model by welcoming a strategic partner.
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