Prime Minister (PM) KP Sharma Oli has said the government cannot provide even a penny in loan or investment to the Nepal Airlines Corporation (NAC) in the current situation.
Addressing the 61st anniversary of the national flag carrier on Monday, PM Oli, who is also overseeing the Ministry of Culture, Tourism and Civil Aviation after the death of Rabindra Adhikari, made it clear that the government will not provide money until the NAC's management improves.
The NAC has been demanding budget with the government after struggling to repay installments for the loan taken to procure wide-body planes. "There are planes but no pilots. No destinations. There is no certainty about destinations. Management is chaotic. We should bring strategic partner if you can't handle. Do it fast if you can," Oli stated.
He also warned the management to not remain in illusion that the government will provide money with closed eyes as it is the national flag carrier. "We cannot give money when you demand so many billions without doing the necessary works. There must be guarantee of good management for that."
He added that the government can make any kind of intervention for successful operation of the NAC. He said the institution should not always depend on the government.
Reminding that airlines is not a thing of charity even though it is a service, he pointed that its operation is not like that of a health camp. "What is the progress of 62 years? There is debt of Rs 39 billion. This is not a sector of charity," he stressed. "You must earn yourself. We bought six planes but there are no persons to fly them. We procured wide-body planes but there are no destinations. Only the NAC is in loss. Everyone including those who work there, use the planes and fly them are making profit. Why is the NAC alone in loss?"
He also warned the NAC management for trying to fly to wrong places instead of choosing the right destinations. He raised questions about trying to fly to other Japanese cities instead of Narita.
He said the NAC should operate in full capacity as the government is preparing to celebrate Visit Nepal 2020.
