Nepal Airlines, grappling with poor management and financial crises, should shift to a contract management system to resolve its ongoing issues, suggest lawmakers.
During a meeting of the International Relations and Tourism Committee in the House of Representatives today, MPs emphasized that the airline’s problems are long-standing, and it is essential to bring about management changes to improve its condition.
Culture, Tourism, and Civil Aviation Minister Badri Prasad Pandey stressed the need to strengthen the corporation to control the rising costs of both domestic and international flight tickets. He highlighted that the country’s airspace must remain safe, and cooperation from everyone involved in the tourism sector is crucial. He also mentioned that improvements are necessary from aircraft procurement to operations and ticket sales. “We are working to resolve these issues,” Minister Pandey said, adding that the corporation’s executive director has been given a month to submit a plan for reform.
Committee member Udaya Shamsher Jabara remarked that the corporation’s issues are over two decades old and rooted in tradition, urging the need for management changes. He suggested that improvement would be difficult without such a change.
Another committee member, Bhim Prasad Acharya, also noted that without altering the management system, no other changes would be effective. He proposed that the airline’s management should be handed over to a contract-based system.
Member Sunita Baral emphasized the need to address the issues in the procurement process alongside management changes.
MP Shishir Khanal called for an investigation into the irregularities in aircraft procurement, suggesting that the committee should look into the matter.
MP NP Saud pointed out the managerial issues within the corporation and advocated for assigning managerial responsibilities to the private sector or adopting a contract management system.
MP Yogesh Gauchhan noted that the corporation is being run without an executive chief, arguing that the interests of the institution cannot be ensured under the leadership of someone who has been suspended.
During the meeting, the corporation’s executive director, Yubaraj Adhikari, provided an overview of the current situation and the challenges faced by Nepal Airlines.