National 5 (Spotlight Weekly)

Flying International

Cosmic Air begins its international flights service but will it survive amid competitive market

By A CORRESPONDENT

Last week on the day when Cosmic Air began its maiden flight to Indian capital New Delhi, Nepal Bangladesh Bank (NBB) issued a public notice for the auction of the property of two proprietors of liquidated private airline Mountain Air.

This is not the first case of publication of auction of public property deposited in the bank by the private airline operators. From Nepal Airways to other airlines, banks have issued similar auction notice. Besides, it is still fresh in the memory of Nepalese people how Necon Airlines - which was operating in the domestic sector handsomely - collapsed in a matter of one year after it began the operation of international flights to Patna and Benaras.

Aviation experts are watching closely how Cosmic Air's grand flights to international sector - New Delhi and Dhaka - will survive and if it collapses how many banks will have to issue such auction notices again.

Operating through a Fokker 100 jet engine, Cosmic has to compete with four major airlines in Delhi Sector and one state owned airline in Dhaka sector.

Following the riots of September, the tourist arrival has drastically declined. According to Nepal Tourism Board, the tourist arrival significantly dropped in October and November compared to the previous year.

If the situation is bleak and the competition is tough, what prompted the investors of Cosmic to start operation to New Delhi and Dhaka? "Frankly speaking, there are many banks with huge public saving, which will collapse along with airlines," said an aviation expert. "This is because the Ministry of Culture, Tourism and Civil Aviation issued the Air Operation Certificate to every Tom, Dick and Harry."

If the economics and market situation is any indication, no one sees any profit in these routes where region's renowned airlines are competing for their survival. In New Delhi route, there is already competition among Bhutan's Druk Air, Indian Airlines and Royal Nepal Airlines all semi-government and experienced private airlines with deep pockets like Sahara and Jet Airways - two fastest growing private airlines of India.

Where does Cosmic stand in this crowd? As an airline with just one aircraft and that, too, of an old model, it is going to be most difficult for Cosmic to make any profit. Since the airlines are capital-intensive businesses, where is the capital in Nepal to invest on the private airlines then?

At present, the Cosmic is offering cheapest fare among all six airlines with Kathmandu- New Delhi fare at Rs.4320 (US$ 60). However, its sustainability is a major challenge.

Raj Parishad Conference Kicks Off

The central regional conference of the Raj Parishad, which began in Kathmandu on Monday (December 7), has demanded definitive role for the King in the constitution. Its member former army chief Satchit SJB Rana had forwarded the proposal for amendment of the constitution.

Speakers at the conference called for changes in the constitution so as to make room for the King to play a constructive role and provide guardianship. The proposal is to be forwarded to the King. The participants of the conference trashed the protests by political parties who have said that Raj Parishad should refrain from entering into politics by organizing such conferences. Their demands for amendment of constitution including special powers for the King comes at a time when the Maoists and some political leaders have been demanding for constituent assembly.

The Raj Parishad also rubbished the demands for the constituent assembly. Among other issues raised in the proposal include making the president of its Standing Committee a member of the Constitutional Council ostensibly to balance-off politicization in appointments of heads of constitutional bodies; expanding the Raj Parishad to district level and so on. The proposal also spewed venom against the agitating political parties alleging they were helping increase the Maoist anarchy and foreign meddling by engaging in meaningless street protests.

The three-day conference will discuss the proposal in detail. Raj Parishad Standing Committee president Parshu Narayan Chaudhary and former president Keshar Jung Rayamajhi, among others, addressed the conference. Ex officio members of the Raj Parishad including Prime Minister, opposition leaders and ministers did not attend the conference. Jog Meher Shrestha, Land Reforms Minister and a leader of Rastriya Prajatantra Party (RPP), was the only one attending the conference from among the council of ministers who all are its members. According to the present constitution, the Raj Parishad is authorized only to recommend the name of heir to the throne at times of need.