CAAN set to increase taxes
Half year tax collection Rs 500m

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KATHMANDU, Feb 27 - Civil Aviation Authority of Nepal (CAAN) collected Rs 500 million in taxes within first six months of the current fiscal year. The whopping collection, as it might seem, that too only two years after its establishment, may project an image of being sustainable and self-reliant. But, CAAN, is yet to be achieved it.

Lately, to facilitate in making CAAN more endurable, officials are working to increase the taxes levied upon the passengers at the Tribhuvan International Airport. As per the information received, the preliminary homework has been completed and the final decision is likely to come soon.

Each passenger presently pays Rs 600 as airport tax. The maximum that the government can levy is Rs 1000, according to International Civil Aviation Organization (ICAO) rules.

According to officials at CAAN, the Authority can never reach the desired sustainability: not even if tax collection continues at the current rate throughout the year, unless taxes are hiked. Says Basudev Shrestha, chief of the Finance Department, "The CAAN will take another five years to be self-reliant. The present surge in tax collection is, however, a positive sign towards its sustenance."

CAAN last year had incurred losses of Rs 100 million. While its collection stood at Rs 900 million, the expenses then had been 1 billion. The government had to inject additional Rs 160 million. Also, the government, at the time of establishing CAAN after scrapping the Aviation Department, had invested Rs 1 billion.

Officials are optimistic that despite last year’s losses, CAAN would not have to borrow from the government this year. However, they added that CAAN is still not in a position to repay the amount that it owes to the government.

Despite the autonomy granted to CAAN, incongruous policies of the government, in addition to laxity in announcing CAAN regulations, has curtailed the freedom with which CAAN can operate. Political interventions in CAAN’s normal operations have rendered efforts to make the Authority sustainable largely redundant, lament officials.

TEAN threatens to go on agitation

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KATHMANDU, Feb 27 - Telecommunications Employees Association of Nepal (TEAN) came down heavily upon the Nepal Telecommunications Corporation (NTC) Management Board for taking decision against the interest of the Corporation.

The TEAN has criticized the Board for the decision of procuring C-DOT exchange system, which is incapable of providing local billing and for operating email and internet services.

Speaking at a press meet organized here today, Tanka Lal Shrestha, Chairman of TEAN, said that operating telecom services in an absolete C-DOT system, has incurred a huge loss of revenue, as the customers pay only the minimum tariff of Rs 181.5 per month irrespective of number of calls they make.

"At a tourist destination like Nagarkot, the NTC is operating on the C-DOT system, from where it could earn a good amount of money. Discarding the suggestions of the employees the board has again decided to purchase the same system under political pressure, which is not going to benefit the corporation as well as the users", he warned.

Low tariff collection also results in low revenue generation. Therefore, the government should immediately retract the decision, he demanded.

The employees also criticised the Nepal Telecommunications Authority (NTA), the regulatory body of telecom services, for awarding the contract to a private party violating the existing telecom laws.

"The NTA has awarded the contract to operate cellular mobile phones to the Khetan Group violating the Telecom Act 2053 Clause 22 (2), which states `No licence will be given to another party to operate cellular mobile phone before five years of granting a licence to one party’. And it has been just over a year and the NTA has awarded the contract to the Group, violating the laws", charged Ghana Shyam Rai, General Secretary of TEAN.

They also accused the NTA of failing to discharge its duty as the VSAT (very small aperture terminal) users and VSAT network providers are illegally operating dial pad and internet telephony for international calls, causing a great loss to NTC and to revenue subsequently.

"Except for issuing licence, the NTA has done nothing more than taking decisions that are detrimental to the state-owned Nepal Telecommunications Corporation. The government should think about it seriously. If such unlawful practice is not stopped in time, it will be disastrous for the Corporation and the nation."

Similarly, they also accused the Khetan Group for placing a bid of unrealistic amount of royalty in the competitive bids, which they claim, would make the NTC bankrupt as the standing laws require NTC to pay equal royalty being a licensee of the NTA.

They also expressed their apprehension about the conversion of the Corporation into a company, as per the Company Act, regarding the future organisational structure, job guarantee and conditions of the service of the employees and distribution of shares.

They also threatened to start strong agitation if the government continues to adhere to its irresponsible behaviour.

Qatar Airways to induct A330 and A380 aircraft

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KATHMANDU, Feb 27 - Qatar Airways is set to become the latest customer for both the A380 and the A330. Having decided to acquire two of Airbus’ all-new very large airliner plus two options, Qatar Airways becomes the ninth customer for the highly successful aircraft, a press release said.

"The new A330 and A380, with their unsurpassed cabin comfort, economy and reliability, will help us to remain a leader in this field," says Qatar Airways Chairman HE Sheikh Hamad bin Jassem bin Jabor Al Thani.

Launched in December 2000, the A380 today has won 66 firm commitments from nine customers, plus another 54 options. It is the only firmly launched new programme in its class, and has won every single competition for very large aircraft so far.

Deliveries of the A330-200s will begin in April 2002. They will be used to replace A300-600Rs on Qatar Airways’ flagship Doha-London route and other services to Europe and Asia, as well as to inaugurate new nonstop services to the Far East. The A330s will seat 235 passengers in a first, business and economy layout.

Qatar Airways currently operates a fleet of six A320s and seven A300-600Rs on airline services, as well as an Airbus Corporate Jetliner and an A340 on behalf of the Qatar Amiri Flight. It is thus well placed to integrate the A330 and A380 into its fleet.