Finance Ministry Suggests High Level Body To Reform NAC

The Ministry of Finance (MoF) has suggested forming a high-level committee to study the future course of action of the ailing Nepal Airlines Corporation (NAC) and address the ongoing staff agitation.
At a meeting held at the Ministry on Friday, Finance Minister Janardan Sharma suggested that it would be appropriate to form a committee under the coordination of Tourism Secretary with representatives from the Ministry of Finance, NAC and independent experts related to the aviation sector to submit a report with recommendations within 15 to 20 days.

He stressed the need for ending the agitation after holding discussions with the employees and conduct regular work of the corporation. Minister Sharma said that it would be easier for the government to take necessary decisions after studying the reports of various committees so far and suggesting suitable alternatives by the high-level committee.
On the occasion, Finance Secretary Madhu Kumar Marasini and Secretary at the Ministry of Culture, Tourism and Civil Aviation Yadav Prasad Koirala pointed out the need for strong political leadership for the reform in the corporation.

Stating that it was impossible to upgrade NAC with general reform, they said that necessary decisions should be taken at the political level. During the discussion, Managing Director of the NAC Dim Prasad Poudel made a presentation on the current situation of NAC and future strategic options.
He said that the financial condition of the corporation became weak due to political interference, over-recruitment and weak legal system.
The NAC currently has Rs. 50 billion debt and Rs. 11 billion in accumulated losses, said Poudel.

He said more than 550 employees were more than needed. He informed that the corporation had 230 employees per aircraft as different airlines of the world had an average of 125 employees per aircraft.
He said that various committees had so far studied and submitted reports for the reform of the corporation but they had never been implemented.

Source : TRN,