RNAC board to consider suspension of Europe flights

August 2, 2001
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The board of Royal Nepal Airlines (RNAC) will meet this week to consider an executive decision to suspend flights to Europe and Dubai from September 2 at the beginning of the peak tourist season, an aviation source said.

Nepal’s state airlines flies to Frankfurt, Paris and London in Europe. The Hotel Association of Nepal (HAN) has flayed the decision. The  “shocking decision” will adversely affect the hotel industry, a HAN statement said.

The suspension of flights comes after RNAC decided to prematurely terminate a lease for an aircraft with China Southwest Airlines two months ahead of its expiry on Sept 27 leaving the airlines only two aircraft to operate its international sector.

The lease with CSWA is being terminated from Sunday, a source said. Financially strapped RNAC has agreed to pay CSWA dues in installments by December this year while terminating the agreement. RNAC earlier annulled its controversial lease with Austria’s Lauda Air.

The decision also comes following declining tourist arrivals. Overall tourist arrivals declined by an unprecedented 56.83 percent in June as Indian arrivals fell by 72.48 percent during the same period. nepalnews.com be Aug. 2.