Nepal govt explores management contract to restructure NAC

Kathmandu: The government is preparing to operate the national flag-carrier Nepal Airlines Corporation (NAC) under management contract. 

Minister for Culture, Tourism and Civil Aviation Sudan Kirati said that processes have been advanced for the management contract of the NAC for its restructuring. 

At a meeting of the International Relations and Tourism Committee of the House of Representatives (HoR) on Tuesday, Minister Kirati said, “We are preparing to go for this system as we are required to embrace the management contract of the Corporation’s restructuring.” The Ministry has already sent a proposal for a management contract to the cabinet. “A decision will be made soon on this agenda,” he shared. 

Minister Kirati argued that reforms in the NAC were inevitable through management contracts based on the studies and recommendations of the stakeholders. Since the management contract modality has generated good results in different countries, this model could be appropriate in Nepal too, he claimed. 

On the occasion, Minister Kirati shared that the ministry has drawn the conclusion that the NAC cannot be run in the existing situation and that plans were being prepared to run the organization by bringing about structural reforms. On the occasion, lawmaker Udaya SJB Rana said that the NAC’s presence should be made robust in the international market even by adding more aircraft. 

Likewise, lawmaker Dr Dhawal SJB Rana said that the NAC’s management contract was appropriate but it should advance only on the basis of relevance. However, lawmaker Prem Suwal opposed the idea of operating the NAC through a management contract and called for all to become responsible for reforms in the NAC.