National 10 (Spotlight Weekly)

'Our Immediate Problem Is Shortage Of Aircraft On The International Sector'

— MOHAN PRASAD KHANAL

MOHAN PRASAD KHANAL, who has spent four decades in the Royal Nepal Airlines (RNAC), was recently appointed managing director of the ailing carrier. Khanal, who has a long experience in the airline's marketing, spoke to SPOTLIGHT on the challenges confronting the RNAC. Excerpts:

You have been appointed managing director at a very critical time in the RNAC. How do you plan to cope with the situation?

Yes, I do agree that this is a very critical time. But having said that, I also see the prospects ahead. The RNAC has a lot of capability and many opportunities in the future. We should deal with the problems one by one. The major problem is the shortage of aircraft in the international sector. If we have one additional aircraft, we can easily cope with the present situation. Of course, we need to plan for the future, but we should go step by step.

How can you acquire an extra aircraft when you are acutely short of funds?

This is not a question of acute shortage of finance. Getting aircraft on lease and lease purchase is not difficult. If you have a viable project, you can earn and pay. The airline does not have difficulty in bringing an aircraft. The problem here is that everybody needs either a guarantee from the government or the finance is backed by firm financial commitments. We are discussing with the government and we are taking the issue with the responsible officials in the ministry. We will find some way out to get the aircraft. Otherwise, it will be very difficult to make any progress in reliability and punctuality. We need at least one aircraft.

It is said that excessive political interference has pushed the RNAC to the state of bankruptcy. Do you still face similar pressure now?

I was appointed less than three weeks ago but I have not faced any such circumstances. My superiors have said they will not interfere in internal affairs. So far, I have not faced any difficulties.

The RNAC is said to be a den of deep-seated vested interest. Do you think you can withstand undue pressure from undesirable sources?

I will try my best. I have no personal interest to become managing director. I have served the airlines for the last 40 years. I have only one interest, which is to upgrade the status and position of the airline. I want to contribute to building the image of the RNAC as an efficient, reliable and strong airline. This is my ultimate wish. I want to use my experience to do something constructive for the RNAC. I will do my best to resist undue pressure. If I find myself under compulsion to do anything that goes against the interest of the RNAC, I will quit.

If everything goes your way, how long would it take to restore the RNAC's image?

With the help of my staff, colleagues, and cooperation from the ministry, I am sure that I can show some progress in six months. For the carrier to regain its original image, it will take at least one year. I am confident of getting cooperation from the staff and from everyone outside the RNAC.

Do you think privatization is the solution to the RNAC's problems? How do you reply to those who are arguing for the privatization of the carrier?

Privatization is not the panacea of all diseases. If the government is not going to invest and if the government is not going to stand for the loan guarantee in getting aircraft, definitely we have to find some way. In such a scenario, the options could be joint venture with other airlines or privatization. I am not an expert on that.

At a time when you have a shortage of aircraft, you are introducing service to Kuala Lumpur and Singapore. How do you expect to manage your schedule?

We have two aircraft and can manage the new routes through them. These aircraft will fit in the schedule. It is difficult to continue for a long time with the two aircraft and such a schedule is not desirable. So, we must have a third aircraft to ensure reliability.

Have you talked with the officials on getting a third aircraft?

We have been exchanging views informally, but are yet to come up with a concrete agenda. We will give this issue priority.

When most of the airlines are flying to Kathmandu with modern aircraft with all facilities, how do you expect to compete with two old-model aircraft?

This is definitely a matter for serious consideration. If we have to concentrate on regional routes, these aircraft are pretty good and comfortable. We don't need bigger aircraft for the regional route. We need a wide-body aircraft in the routes like Osaka and China, but we cannot afford them for the time being. For the regional routes, the Boeing 757-type aircraft will serve the purpose. Having said that, we must plan for the future. For two or three years, we will go with narrow-bodied aircraft. But we should have a clear plan for the future.

Nepal is celebrating the golden jubilee of the first ascent of Mt. Everest and the government-Maoist cease-fire has sent positive signals in the global market. But one of your aircraft is said to be going for C-check. How do you plan to fill the gap?

One of our aircraft is going for C-check on May 31. We have already advertised for the sealed offer of aircraft. We are expecting to receive offers from various airlines. We will evaluate and try our best to bring in the substitute.

What is your vision for the RNAC?

As the national flag carrier, this airline has many potentials. We should plan for a few more aircraft. The RNAC needs at least four aircraft within five years. We must go to Europe and expand our route to countries where tourists originate. My vision is clear: we must heat the tourist-originating markets. Regional routes are all right for the time being, since we have aircraft constraints, and we have just a year ago pulled out from the European route. We must have wide body and long-range aircraft in future to go directly to destinations where tourists to Nepal originate.