Kathmandu, October 8 : The Ministry of Finance has opined that the Nepal Airlines Corporation (NAC) does not reserve any right to ground the Chinese aircraft without any proper reason. The ministry submitted this opinion to the NAC through the Ministry of Culture, Tourism and Civil Aviation.
Earlier, the national flag carrier had decided not to fly any of the six China-made aircraft that include four Y-12 and two MA-60 from July 30 citing mounting economic losses.
According to reports, it suffered the losses amounting to Rs 1.9 billion from Fiscal Year 2071/72 to FY 2075/76 while operating them. Similarly, there are estimations that such losses could reach a staggering Rs 2.3 billion in the current fiscal. High insurance premium, expensive spare parts and dearth of pilots are ascribed as the major factors behind this financial anomaly.
In order to cope with the very anomaly, the NAC management had asked the Ministry of Culture, Tourism and Civil Aviation to permit it to stop using the Chinese airplanes. However, this ministry could not issue such a permission on its own since the aircraft were purchased on the basis of subsidized loans and grants. So, it chose to call upon the finance ministry for taking the necessary step regarding the matter. After this, the finance ministry sent a letter to the NOC furnishing every detail vis-a-vis its decision to dump the aircraft purchased from the northern neighbour.
According to the reports, the NOC has already submitted such letter to the Ministry of Culture, Tourism and Civil Aviation. After making the necessary assessment of it, the ministry will forward it to the finance ministry for its final decision.
