Reforms In RNAC
MINISTER for Culture, Tourism and Civil Aviation Kuber Prasad
Sharma has said that His Majesty's Government was making an alternative plan to improve
the financial as well as managerial conditions of Royal Nepal Airlines Corporation,
Nepal's national flag carrier. In an interview to The Rising Nepal the other day, Minister
Sharma spoke of three alternative plans for the development and improvement of the
services, management and financial situation of the national flag carrier. One of the
three alternative ways, as said by Minister Sharma, is converting the Corporation into a
public limited company. The condition of the Royal Nepal Airlines Corporation (RNAC) has
been very bad over the last few years. Despite having monopoly until a decade ago, RNAC
had not been able to run in profit. With the introduction of economic liberalisation, the
government opened up the aviation sector to private investors. As a result, more than a
dozen private airlines have come up in the domestic as well as international market. RNAC
has now been facing stiff competition. This is the age of competition. In this changed
context, RNAC also needs to make changes and improvement in its services as well as
management in order to compete with the private sector and march ahead in the race.
However, the national flag carrier does not seem to have changed its style and management
as it used to be during the monopoly era. As a result, RNAC has suffered a lot. Other
reason for the deteriorating condition of RNAC is political intervention. The past
experiences have shown that the RNAC leadership changed with the change of Minister or
government. As RNAC has long history and goodwill in Nepal's civil aviation sector its
image and history must be protected. For this, an effective plan is a must for the
improvement of the national flag carrier. The alternative plan and corrective measures
that the government is seriously working out is the demand of time if RNAC is to be
protected and improved. Once political interference was discouraged and corruption curbed,
it would be a big step forward for the improvement of the Royal Nepal Airlines
Corporation. Similarly, professionalism and business motive also seem to be lacking in the
management of the RNAC. Ever since the present government came to power political
intervention has been reduced and the corporation has started seeing some signs of
improvement. However, the sense of competitiveness is lacking. Unless the sense of
competition was developed in the management as well as among staff, it cannot prosper to
the desired extent. If implemented, the alternative ways that the minister has mooted
would definitely go a long way in the history of RNAC.
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