Kathmandu,  April 26: The Royal Nepal Airline Corporation (RNAC), the National Flag Carrier of the nation, could be incurring losses in millions of rupees once more due to managerial bungling in the process of leasing an aircraft. It may be recalled that the Corporation has not been able to recover the money to the tune of US $ 300,000 that was deposited in a foreign bank by some officials while trying to lease an aircraft more than one year back.

This time also, it is alleged that RNAC stands to lose around Rs. 300 million because of a delay in leasing an aircraft from the lowest bidder in the tender called for by the Corporation.

The process to lease another aircraft for RA’s international flights started when the lease of the Boeing B-757 of China Southwest Airlines was about to expire on March 27, 2000. The then management of the Corporation had called for an international tender to lease another aircraft.

The then Executive Chairman of the Corporation had revealed that as the Boeing Company could not deliver a new Boeing 767 for another two years, RNAC was forced to lease another aircraft of the same made. The RNAC management had earlier said that they would lease-purchase a brand new B 767-300.

However, after the calling of the first global tender, the most transparent way of leasing an aircraft, it was disclosed when the tenders were opened on February 29 that only one bidder had the type of aircraft as had been specified. But even that bidder, Ansett Australia, did not submit the 2.5 per cent of the bid bond which amounted to around US $ 600,000. So not even one valid tender was received.

In the meanwhile sources claim that other parties interested in submitting a tender started to check on how many B767s that were less than five years old were actually available in the market. This can easily be done through the Internet. According to ehe infornation  received through the Internet, it was revealed that only three companies, Ansett Australia, Royal Bruniei Airlines and City Bird Airlines of Belgium had such aircraft available for leasing.

But even out of these three, it was found that Royal Brunei had two B767 300s one of which was already leased to Air Algerie and the second one was grounded due to serious engine trouble. City Bird had not participated in the first tender bid and only Ansett had the available aircraft, but it was quoting a very high price as compared to the normal rate.

Furthermore, when even the second global tender, with similar conditions as the first – low age restriction and 2.5 per cent bid bond – was announced, many in the aviation sector suspected that there may be foul play, and some wanted to award the leasing contract to a particular company. RNAC could be the loser as the Corporation would have to pay a hefty amount to Ansett that was quoting a very high price. Fortunately, this tender was also scrapped for various reasons and then a third global tender was called on 12th March in which the age restriction was relaxed and the bid bond was brought down to a more reasonable figure of US $ 25,000. This move made it possible for other interested parties to also participate in the tender bids.

Also, being a new tender and not a re-tender, when the bids of the third tender were opened on 18th April, as 15th April happened to be a Saturday, it was revealed that five tenders had been received. Among them Babcock and Brown of Northern Ireland, Great Britain had put in a bid at the rate of US $ 3,375 per flight hour and also submitted a bid bond, Nepal Trade Concern had made a bid at the rate of US $ 6,000 per flight hour and it had also submitted a bid bond, City Bird of Belgium had filled the tender through Transaction Pacific at the rate of US $ 5,450 per flight hour and it had also submitted a bid bond, whereas A and H Aviation of UK had not submitted a proper bid bond and there was a controversy on the tender of Ansett on whether its seal had been tampered with.

As per  the tender opening procedure, before opening the envelopes containing the tenders, the sealed envelopes were circulated and it was observed that some parts of the outer seal had come off in the envelope of the Ansett tender, but the cellotape beneath the wax seal was intact. Yet, in spite of no objections from the competing bidders, sources claim that some representatives of RA themselves objected and refused to open the envelope. This was where some people in the aviation field suspected that there may have been vested interest at play, because the bids of other companies had already been read out.

Thus the  tender was not opened on that day and instead the envelope was sent to the national Forensic Lab at RONAST and it was investigated by the chief of the Lab. A reports was given that the envelope had not been tampered  with on 19th April itself, yet, some officials at the Corporation still refused to open the tender.

Critics say that this was a ploy to give more opportunity to Ansett to withdraw its tender as it was priced too high. Sources said, the company indeed sent a fax some time later that it wanted its tender returned. Thus on this ground officials refused   to open the tender even the next day. Aviation sources informed that universal tender rules do not allow tender bids submitted within the declared due date to be withdrawn, if this was done the bid bond could be confiscated.

But finally the tender was opened on Friday April 21st. It was revealed that Ansett had quoted a price of US $ 4,300 per flight hour for a seven year old plane and US $ 4,100 for a five year old aircraft.

Basing calculation on a usage of 300 hours a month as specified in the tender notice, this would mean that over the 18 month long tender period, this offer would be almost Rs. 300 million more expensive than the lowest bid submitted. This sum can be arrived at when the difference between the price  quoted by Ansett and the lowest bidder Babcock and Brown is multiplied by 300 hours and 18 months.

The present government, which has come with a strong commitment to fight corruption within government institutions, would do well to seriously look into this matter and not allow any irregularities to take place in the effort of the National Flag Carrier to lease an aircraft, sources say.

Making further delays in leasing the much needed aircraft, could also cause further losses not only for RNAC, but also to the whole tourism sector of the country, they pointed out.