Lauda Air deal draws flak

BY A STAFF REPORTER

Kathmandu Nov 15:Royal Nepal Airlines Employee’s Union and Nepal Airlines Pilot Association (NAPA) today said if the National Flag Carrier sticks to the lease agreement with Lauda Air, it would jeopardise its existence and the nation would have to pay a big price for the decision.

"RNAC would not be able to survive even for six months if the deal is not scrapped immediately," Salik Ram Acharya, Chairman of the Union said.

Aryal termed the agreement of being ‘unfortunate’ and said it was not in the interest of the Corporation.

"The flying routes charted out at the moment can accommodate only three aircraft. Moreover RNAC is curtailing its flight hours to operate the leased aircraft belonging to the China South West Airlines," NAPA Joint Secretary Captain S.R. Shrestha claimed.

In this backdrop, the leasing of a new aircraft cannot be justified, he said.

The agreement between the RNAC and the Austria based Lauda Air has been drawing flak from different quarters. The existing legal provision for leasing of any aircraft requires RNAC to make a global tender, which has not been done in the case of the ‘controversial agreement’, Shrestha maintained.

The Public Accounts Committee (PAC) of the Parliament has demanded that the RNAC officials submit the details of the agreement following claims that the agreement had been signed without abiding by the prescribed regulations.

"RNAC has already spent nearly seven billion rupees for leasing aircraft of different airlines," N.B. Rai, President of another RNAC Employees Union told a press conference organised by the Reporters’ Club here today.

RNAC will have to pay nearly 1.88 billion rupees to the Lauda Air for leasing its aircraft for a duration of eighteen months, he said.

Rai claimed that with all the money that has gone into the leasing of aircraft- nearly 8.88 billion rupees- RNAC could as well purchase a brand new Boeing 767 aircraft.

"The deal with Lauda Air was not signed because RNAC was in dire need for an additional aircraft but it was out of the greed to pocket huge sum of money in the form of commission," Rai stated.

Representatives of the RNAC Management team had also been invited to the press conference. But none of them turned up to defend the agreement.

"We suspect that there have been irregularities in the aircraft deal between RNAC and the Lauda Air," Subash Nemwang, PAC Chairman told the Rising Nepal.

The Cabinet had given a go ahead to the line Ministry for the signing of the aircraft deal.

"The Cabinet failed to furnish a convincing reply when inquired about the lease agreement with Lauda Air," Nemwang said.

He said that the Cabinet has instead asked PAC to seek the details of the agreement with the Ministry of Tourism and Civil Aviation.

Nemwang said the existing fleet of RNAC has the capacity to conduct 900 flight hours. The three wide bodied aircraft with RNAC are covering the 900 flight hours at the moment, given the fact that an aircraft can operate at least 300 flight hours, the need for an additional aircraft is questionable, he said.

"PAC is holding a meeting next Monday at eight in the morning to discuss the agreement," Nemwang said.

He said that PAC would settle the issue at the earliest possible and make public whether or not the lease agreement is in conformity with the legal provisions.

RNAC officials were not available for comment despite repeated efforts to contact them.

Acharya opposes Bandh, offers cut in prices

Kathmandu, Nov. 15 (RSS): Finance and Defence Minister Mahesh Acharya has appealled to the group of nine leftist factions to withdraw its two-day Nepal Bandh programme.

Mr Acharya, speaking at a Face-to-Face programme on the "Impact of Bandh on public life" organised by the Reporters' Club here today, spoke of the need to stop bandh or strike since the government is ready to change the pricing of petro-proudcts by incurring the loss of millions of rupees.

Wondering why the opposition parties are not trying to take coupons to the doorstep of the poor as the government aims to distribute coupons to some four million people, the Finance Minister made it clear that the government is ready to constitute an all-party committee to look into corruption and irregularities in the Nepal Oil Corporation (NOC).

CPN-UML leader and ex-Finance Minister Bharat Mohan Adhikari said his party extends moral support to the Bandh, adding that whereas the price of kerosene at international market has increased by 57.8 per cent, the hundred percent increase here cannot be justified.

MP Pashupati Shamsher J. B. Rana observed that the hundred per cent increase in the price of kerosene which is mostly used by the general public is unjustifiable.

Denying RPP's participation in Nepal Bandh programme beginning tomorrow, Mr Rana made it clear that his party is not in favour of the price increase.

NOC general manager Madan Sharma remarked that the corporation has to incur the loss of Rs one billion at having to sell kerosene at Rs 15.50 per litre.

Stating that in India kerosene is sold at Rs 16 per litre for ration card holders and at Rs 29 for others, Mr Sharma said 70 per cent of the people will benefit from the present price structure of Rs 15.50 per litre.

A host of other speakers including first vice president of Federation of Nepalese Chamber of Commerce and Industry Rabibhakta Shrestha, chairman of the Nepal Tourism Board Pradip Raj Pandey, president of the Hotel Association Nepal Narendra Karmacharya and tourism entrepreneur Bhola Thapa laid stress on the need for strikers to look for other alternative ways for protesting.

President of the Consumers' Association Harendra Shrestha also spoke on the occasion.

Japanese grant for iodized salt

Kathmandu, Nov. 15 (RSS):The government of Japan has agreed to extend a grant assistance of Japanese yen 537 million (approximately Rs. 369.4 million) to His Majesty's Government for the implementation of the project for improving storage capacity of iodized salt to eliminate iodine deficiency disorders in the Kingdom of Nepal.

The grant assistance will be used to construct storage facilities for about 7,000 metric tons in Biratnagar and Janakpur.

In addition to this, the assistance will be used to increase transportation capacity for the distribution of iodized salt and also to establish a laboratory for identifying iodine content in the salt. Necessary equipment will be installed for adding iodine to the required level.

The Nepalese side will provide necessary land for the construction of storage facilities, and will also bear the cost of electricity, telephone and water supply connection, and drainage and other incidental facilities estimated at Rs. 7.35 million.

The project is expected to be completed within one year.

An agreement to his effect was signed and exchanged in the Ministry of Finance today betweenHis Majesty's Government and the Government of Japan.

Secretary at the Ministry of Finance Dr. Bimal Prasad Koiral and Ambassdor of Japan to Nepal Mitsuaki Kojima signed the agreement on behalf of their respective governments.

His Majesty's Government has expressed sincere appreciation and thanks to the government of Japan for the assistance and for its continued interest in the devolopment of Nepal, according to a press release issued by the Ministry of Finance.