NAC for hike in domestic fares
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KATHMANDU, MAR 20 -
Nepal Airlines Corporation (NAC) Chairman Sugat Ratna Kansakar said on Friday that the flag carrier should hike airfares in the loss-making domestic routes. NAC’s annual loss in the domestic sector stands at Rs. 250 million.
He said the state-owned corporation will phase out its two B 757 aircraft, purchased in 1987 and 1988, within the next five years in view of the aircraft’s high operational costs.
NAC has spent US$ 4 million for C-check of the two planes over the last 18 months, Kansakar said at an interaction of the Management Association of Nepal.
“A simple cost-benefit analysis favours operation of these aircraft only for a few years.”
Amid plans to cancel the purchase of two aircraft—one narrow-body and another wide-body aircraft—from Airbus, he claimed that the wide-body aircraft is indispensable for tapping the European and Japanese markets.
“We can enjoy a monopoly in the two regions as governments of European countries
do not favour airlines from the Middle East
and Japan does not favour East Asian airlines, including Thai,” he said.
The government had decided to terminate the bidding process for the two aircraft amid allegations that the process was not transparent.
Kansakar said NAC aims to start four flights a week to Frankfurt and/or London, which amount to about 37,000 passengers a year covering 22 percent of the market.
Posted on: 2010-03-20 12:00
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