LOCAL NEWS THE RISING NEPAL (DAILY)

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.

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