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EDITORIAL

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 Kathmandu Thursday September 27, 2001 Ashwin 11,  2058.


RNAC air routes

The other day officials of the national flag carrier — Royal Nepal Airlines Corporation (RNAC) — vehemently resisted the government’s move to open regional air routes to Nepal’s private airlines. RNAC management does not seem to want these routes to slip out of its hands. But the state-run corporation has been on the brink of collapse as a result of political interference and corruption. Previously, RNAC had half a dozen jet aircraft working on its regional and international routes. However, successive governments have reduced these many aircraft to just two only. As a result of this and the fact that it did not have wide bodied jets, it has been unable to continue its services to Europe. Certainly, RNAC will not be able to resume its European operations so long as it remains a state-run corporation that cannot make key decisions on its own and that successive administrations milk like a cash cow. We have had more than an inkling of how such milking works after the Lauda and China South West scandals broke. Until RNAC sees better days and spread its wings westward again, it will remain desperately dependent on the regional routes that the government is now contemplating throwing open to private competition. That it has chosen to challenge the government’s decision on a technicality (it was not consulted on time as per the RNAC Act) is a measure of its desperation.

Against this backdrop, it may be useful to weigh the government’s move on its merits. The government has short-listed three private sector airlines for taking up the regional routes that RNAC now has a monopoly over. RNAC management seems to fear that private competition may push the ailing state airline from bad to worse. RNAC has been providing a poor service all along. Scheduled flights are plagued by delays and cancellations. Passengers have often expressed their frustrations through local newspapers. And tourists who visit this country have refused to use shoddy RNAC service. Poor management at RNAC is too obvious to be ignored. The government began opening up the market to the private sector after the restoration of democracy. There have been a dozen domestic airlines operating in the private sector since then. Half of them have acquired licenses for regional routes. Though not free from snags and glitches, the private sector civil aviation in Nepal has on the whole been a success story, in stark contrast to the national flag carrier. RNAC has just not been able to grow up with the times. Given this bad record and the political meddling there is no option but to open regional routes to the private sector if the exigencies of the tourism industry are to be met. That industry has hit an all time low and the government has to try and revive it. To do this, it must join hands with private airlines which have to be more commercially than politically responsive and provide a competent service just to remain in business.


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