Kathmandu- Royal Nepal Airlines Corporation (RNAC) is buying a new plane. This was probably the best thing to happen to the country’s flag carrier in almost ten years.
Although the Executive Chairman of Royal Nepal Airlines Corporation Bharat Bahadur Karki called it a ‘regular’ one, the press meet on Monday at Hotel Annapurna, instead of the corporation’s meeting hall, signified something different. In the last several years almost every news about RNAC was bad news. But at Monday’s meeting with the press, all the top officials of the Airline were almost beaming with pride and showed confident faces to the media.
The board of directors of the airline has decided that it plans do away with the much criticised practice of leasing an aircraft and this time it had decided to lease purchase a wide-bodied Boeing 767-300ER directly from the assembly line for its long-range flights to Europe and Japan.
The airline has also decided to buy two other short range aircraft for domestic trunk routes. The choice of these aircraft have not been decided, but the two aircraft under consideration are Dash-8 and ATR.
Additionally, the Executive Chairman of the Corporation Bharat Bahadur Karki claims that the reliability of the airline has improved to almost 100 per cent and the punctuality is also more than 90 per cent. There are also similar improvements in the domestic sector, he said. The executive chairman also said attempts have also been made to maintain fiscal and financial discipline within the corporation. The corporation has paid Rs. 150 million out of its overdraft loan of Rs. 650 million and an additional Rs. 250 million will also be paid within days. That means income is growing. Similarly, the corporation has recouped Rs. 20 million out of its Rs. 400 million debt and attempts are being made to get the remaining amount.
It may mean Royal Nepal Airlines is beginning to rise again after a period of bad management and wrong decisions.
However, the executive chairman failed to satisfy the inquisitive journalists about the real cost of the aircraft and how it plans to pay for them. The long haul aircraft alone is said to cost about US$80 million with its two engines costing US$ 6 million each.
Chairman Karki said the actual cost of the plane will be known only after the order has been placed with their requirements and specifications. That is where many suspect the kick-backs and commissions are involved. But the executive chairman tried to play down the suspicion saying that the anti-bribery law of the United States prevents any such thing to happen.
Still, the decision to buy an aircraft is the right decision made by the RA, which has already paid more than US$ 50 million for leasing planes to meet its flight requirements.
Nonetheless, this and other steps on financial and managerial improvements can be called a good beginning by the new management. The only thing is that it should live by and carry out its decisions.