RNAC to be converted to public limited company

By Kedar Bhattarai

KATHMANDU, Feb 16: The Board of Directors of Royal Nepal Airlines Coporation (RNAC) has decided to operate the 43-year-old national flag carrier as a public limited company under the Company Act - 2053.

Assistant Minister for Culture Tourism and Civil Aviation Ravi Bhakta Shrestha disclosed this at a programme here today. He said that the government would give its decision once the RNAC management committee submits its report. The decision was taken at the recently-held meeting of the board in accordance with the recommendations made by the study committee headed by the then member of the National Planning Commission (NPC), Dr Shankar Sharma, almost a year ago.Dr. Sharma, currently the vice-chairman of the NPC, believes running the RNAC under the Company Act is the only way out to attract private sector participation and rescue it. "It could attract big investors and help it become a big public company like other international airlines."At the forum, Assistant Minister Shrestha said that other international airlines were free to operate in Nepal under its open sky policy until RNAC is self-sustaining.Asked whether the government was doing any homework to re-operate the services of Singapore Airlines and Lufthansa, he said "We are trying to bring in new airlines." He also informed that Martin Air was starting its service in Nepal. The assistant minister said that the government was doing the necessary homework to reduce the airport tax. A committee has been formed under the chairmanship of a joint secretary to study the matter.

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