Towards bankruptcy
Towards bankruptcy
It seems that the downfall of
Nepal Airlines Corporation (NAC) is not too far considering its past and
current operational and management performance. NAC formerly known as Royal
Nepal Airlines country Corporation (RNAC) is the flag carrier of Nepal. Founded
in 1958, it is the oldest airline of the country. However, its management
always remained to be controversial due to direct or indirect interventions of
the past and present governments. It used to be and has been made a milking cow
by both the political leaders, ministers and bureaucrats. Its management always
found to be involved in corruption scandals.
Soon after it acquired six
Chinese aircraft six years ago, NAC has been incurring a huge loss. The current
loss has reached nearly Rs. 2 billion, mostly in insurance and operational
costs. If the NAC management does not come up with a realistic plan and program
in near future to handle its debt, the future of NAC is in limbo. What a shame?
