KATHMANDU, July 2: Minister for Culture, Tourism and Civil Aviation Khadka Raj Paudel said it is natural for Nepal Airlines Corporation to struggle to make a profit, noting that most airlines around the world operate on thin profit margins.
Speaking at the corporation's 68th anniversary celebration at its central office on Wednesday, Paudel said most airlines globally earn average profits of only 3 to 5 percent, making it unsurprising that Nepal Airlines continues to operate at a loss. He argued that the corporation's financial losses should not be treated as a major issue.
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The minister also said organizations with limited profit potential should avoid taking on large debts. Referring to the corporation's past borrowing, he described the decision to take on massive loans as shortsighted and said institutions should not borrow beyond their capacity.
Paudel pledged not to interfere in the corporation's management. He said he would fully respect decisions and recommendations made by the board of directors and would not obstruct them. At the same time, he said the ministry is closely monitoring the corporation's activities and warned that anyone found involved in wrongdoing would face strict action.
Speaking at the same event, Ministry Secretary Mukunda Prasad Niraula said political instability in the past had negatively affected the national carrier, but added that the current situation does not warrant pessimism.
Acting Managing Director Janak Raj Kalakheti said the corporation has shown encouraging signs despite facing numerous challenges. According to him, both passenger numbers and the airline's revenue have increased in recent months.
During the event, the corporation also launched its annual publication, Akash Bhairav, to mark its 68th anniversary.
Meanwhile, Archana Khadka, the corporation's spokesperson, said 264 people donated blood during blood donation drives organized at the corporation's central office and Tribhuvan International Airport as part of the anniversary celebrations.
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