NATIONAL 9 (Spotlight Weelky)]

‘Politicians And Bureaucrats Have Ruined RNAC’

—RABINDRA MAN SINGH

RABINDRA MAN SINGH, managing director of Everest De Cargo and Everest Travel Service, stresses the importance of a strong national airline. The president of Nepal Freight Forwarders Association and former president of Nepal Association of Travel Agents, Singh spoke to SPOTLIGHT on how RNAC’s suspension of flights on the European sector would affect the tourism sector. Excerpts:

What impact will Nepal’s tourism industry face by the suspension of Royal Nepal Airlines flights on the European sector?

The suspension of RNAC flights on the European sector will have a lasting impact on tourism as well as the export business. As president of the Nepal Freight Forwarders Association, I am also concerned about the problems in exporting goods from Nepal to Europe after RNAC’s pullout from the sector.

What specific effects do you see on the export sector?

Because of the flights of RNAC, Nepalese carpet entrepreneurs and handicraft producers had direct access to European countries and could export their products through the national flag carrier. Along with the tourism sector, the discontinuation of the flights on the European sector will hamper export business, which is going to be unrecoverable. The government needs to seriously think about the country’s export business. RNAC’s flights to Europe have played a very important role in increasing the export of Nepalese carpet, garments and handicrafts, as it is the only airline that has direct flights to Europe. After the suspension of RNAC flights, importers in Europe will lose the opportunity to get Nepalese products directly from Nepal. Of course, other international airlines are there, but they have different rates and different methods of carrying goods. RNAC’s decision will hurt Nepalese export. It will take a long time to make adjustments with other airlines.

Many say RNAC simply failed to operate flights on the European sector. Do you agree?

The national flag carrier has already proved that it can operate successfully. It has been operating flights for the last 42 years in Nepal, and 14 years in the European sector. Despite all the problems and challenges RNAC has faced in its history, one of the major achievements of the airlines is that it has successfully operated in Nepal as well as on international sectors for such a long time. The decision of the RNAC to withdraw its flights from the European sector is very unfortunate. The government must do something to convince the RNAC management to resume services on the European sector.

How can you justify government subsidies to the national carrier to fly to Europe?

I agree that RNAC is losing a huge amount of money on the European sector, but it is not the result of the internal management of airline. If the government had allowed RNAC to operate without interference, the airline might not have had to incur such huge losses. Because of continual political intervention, the RNAC management has not found time to work independently in the interest of the organization. RNAC has seen three general managers in the last year. In such an unstable situation, how can an airline make profits?

Do you see any lapses in RNAC’s operational methods?

RNAC is a business organization and it is allowed to operate accordingly. RNAC as an institution has shown that it has the capability to successfully operate flights in Europe and other sectors. Despite political interventions and disruptions, the fact that RNAC has been serving the country for 42 years is no small achievement. Of course, RNAC has been very slow in expanding its fleet, but let us not forget that it has enhanced the prestige and credibility of the country when German Airlines Lufthansa withdrew its regular flights from Nepal. If we are to advance the country’s economic interests, we must have our own strong national flag carrier. Of course, other airlines may step in to meet the shortfall created by the suspension of RNAC flights to Europe, but RNAC is our own airlines on which we can depend. No one can deny the fact that it is RNAC that plays the major role in promoting tourism in Nepal.

What does the government need to do?

The government must take the initiative to rescue RNAC from the verge of collapse. There is still time to do so. I don't blame RNAC for its present sorry state. It is politicians and bureaucrats who have ruined the national flag carrier. Had the government given a free hand to the RNAC management, the country would not have had to face the present situation. Can we survive on foreign airlines alone? For the small land-locked country like Nepal, the national flag carrier is a means to maintain direct access to the world. If the flights are cancelled on the basis of profit and loss, RNAC may have to pull out from other areas, too. We have to applaud RNAC internal capabilities in the midst of all the external pressures it has been subjected to.

Do you see any seriousness on the part of the government in this direction?

The government doesn’t seem to be serious about the wider fall-out of the suspension of RNAC flights to Europe. I think the concerned ministries have to take bold decisions. If RNAC needs new aircraft, it must allow the organization to buy them. The government must stay as a guarantor. Before things go from bad to worse, the prime minister has to intervene. I think we can revive RNAC. The suspension of RNAC flights on European sector has come as another disaster in the Nepalese tourism sector after the royal killings. RNAC has already transferred its bookings to other airlines, but what is the government doing? It is duty of all of us to put pressure on the government to do something. The government must tell the people what it plans to do in this situation.

Some people say the private sector can fill the gap created by RNAC’s decision. What do you think?

Operating international flights requires more logistics as well as technical capabilities. One cannot operate international flights just by saying one wants to. The task needs expertise as well as capability. I don't think any private airline can step in to replace RNAC right now. I do not believe that private airlines can be an alternative to RNAC. The private sector will be in a position to operate on the international sector only after few more years of experience.

Do you think the government will do something?

Frankly speaking, the government has to do something. It can ask RNAC to buy another aircraft. If the government arranges another plane, RNAC can continue its flights Europe. One cannot justify RNAC’s decision to pull out from a route in which it has 14 years of experience. If other airlines can make a profit, why can’t RNAC? If RNAC does not want to operate along commercial lines, how can it be run? If we cannot operate an airline, how can we manage the country? This is the time to think about the country.

How do you see the entrance fees imposed on tourists by Kathmandu Municipal Corporation?

I am not against it, but what I want to see is utilization of the resources to improve services in particular areas. My concerned is more with the utilization of resources. We must give better service. The concerned municipalities must inform the people of their decision months before its actual implementation. Such fees exist in other parts of the world. If the local institutions use such resources to improve services, the fees can be justified.