NAC request proposal for strategic management partner

Posted on by Suman Karki

National Flag carrier - aviationnepal

Photo: Nepal Airlines Airbus 320-233 ‘9N-AKX’ taxing at TIA, Nepal

NAC request proposal for strategic management partner

Mar 13, 2017

Reputed Airlines from five countries have been invited by Tourism Ministry for becoming a strategic management partner of Nepal Airlines Corporation. The corporation is seeking a long-term strategic management partner.

The request for proposal (RFP) was issued through the embassies of the US, Australia, France, Germany and the UK last week in Kathmandu. The deadline for submitting the proposals is 17th April of this year.

After the submission of proposals from the respective countries, the negotiations to acquire the management partner will be conducted. The five countries had been chosen as potential partners due to the reason that their airlines do not operate in Nepal. This will avoid situation of conflict.

A committee led by Tourism Joint Secretary Buddhi Sagar Lamichhane has suggested NAC to approach on a reputed international airline. The partnership can be continued for a period of 10 years. Operations, management, engineering, technical and financial are the main areas the partner can be given charge of.

Currently NAC is operating ground handling services at TIA which is a huge source of income to them. NAC has been urged to separate its ground handling and flight operation services to initiate improvements after taking on a strategic management partner.

NAC is in process of acquiring two wide-body A330 jet aircraft however; Lawmakers at Public Accounts Committee (PAC) claimed that addition of two Airbus A330 jets will be a burden for the corporation if the existing management is not improved. So, the performance of NAC will be boosted if it takes on a foreign strategic partner. NAC’s loan amount is expected to reach Rs 40 billion after acquiring two Airbus A330 by 2018.

NAC has been facing lots of criticism and problems for its failure to provide quality air service, efficiency and overall improvement. So, the national flag carrier is desperately in need of a potential foreign partner to improve its management and performance.

Experts from Air France were invited by RNAC in 1970 for improving overall management. Those experts handled almost all of the managerial works until 1973. In 1972, RNAC acquired first ever Boeing 727 jet in cooperation with the French carrier.

Nepal Airlines and Thai Air commenced their operation on same year but Thai Airways has always worked with dedication and has stood up in quality of service satisfying its passenger  where as Nepal Airlines has always been lacking behind. Thai today operates it flight to major cities globally where as the flag carrier of Nepal has always remained under dog in the global aviation industry. Thai currently owns numerous number of wide-body jets and Nepal Airlines at the other hand plans to bring its first wide-body on 2018.

Acquiring an appropriate international management partner from a developed country thus can help the flag carrier to improve its revenue and service.

 

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