Following lack luster performance, Nepal Airlines finds Secretary Kedar Bahadur Adhikari as its new chair to guide airlines to fly high

Feb. 24, 2020, 12:38 p.m. Published in Magazine Issue: VOL. 13 No. 13 ,Feb.21-Mar.12,2020(Falgun.09, 2076) Publisher: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

With the lackluster performance of management in the last one year, Nepal Airlines Corporation has been facing a severe crisis in operation, failing to generate much needed revenue to pay back loans and interest.

From the very beginning of his appointment as Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai set priority to make Nepal Airlines Corporation functional and effective. Minister Bhattarai’s effort backfired due to misunderstanding with the management of NAC.

Ambitious and committed to make difference in tourism sector, minister Bhattarai has already taken numbers of initiatives to make tourism sector vibrant. The appointmnet of Adhikari as a chairman is one of the step to start reform in NAC.

Secretary of Culture, Tourism and Civil Aviation and chairperson of board of director of Nepal Airlines Corporation Kedar Bahadur Adhikari said that the experienced employees of NAC have to suggest which model needs to be followed in reforming national flag carrier.

Assuming the office of chairperson of board of directors of Nepal Airlines Corporation, secretary Adhikari has assured senior executive of NAC that he will support their efforts to make NAC efficient and strong.

Adhikari has suggested the management of Nepal Airlines Corporation (NAC) to either bring a strategic partner or adopt a company model for operation of NAC.

While assuming his duty as NAC’s new Chairperson, Adhikari urged the management to come up with a concrete turnaround plan for NAC.

“Even though NAC is a state-owned company, the government is very positive about switching the operational modality of NAC,” he said, adding, “The government is also ready to amend the rules if the NAC decides to adopt the company modality.”

He added that administrative improvement is equally important to rope in investors.

“A lot of airline companies had to be shut down due to their weak management. Learning from such incidents, it is very important to change the operation modality of the NAC,” he said, further directing the NAC management to conduct a study and table a proposal to the corporation’s board as soon as possible.

Stating that tourism is one of the fastest growing industries in the world, he added, “As a national flag carrier, NAC has to play a significant role in development of the country’s tourism sector.”

All the department heads of NAC briefed Adhikari about current status of national flag carrier. The post of NAC board chairman had become vacant after former executive chairman Madan Kharel resigned on January 20.

Secretary Adhikari said that the management needs to forward jointly suggesting making management effective and efficient. He said that many airlines around the world have collapsed because of weak management. Secretary Adhikari also directed the senior officials to enhance the competitive capacity of the airlines. He said that the Ministry was ready to support NAC.

He said that the government has invested in national flag carrier and the current model can be changed if the new model makes NAC efficient. He also directed to reform in its administrative structure to make it more attractive to investors.

Acting managing director Ganesh Bahadur Chand expressed the hope that Nepal Airlines will make progress under the leadership of experienced and capable secretary as its chairperson. During the program, heads of different corporate departments presented their activities and progress.

Having had a working experience in several ministries and departments, secretary Adhikary can bring change in NAC and its operation system.

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