Recently, NAC had slashed two-way airfare on Kathmandu-Delhi sector by around 50 percent to Rs 8,000 (excluding taxes). Prior to this, the national flag carrier had reduced two-way airfare on Kathmandu-Bangkok sector by 37 percent to Rs 15,700 (excluding taxes).
The reductions were made in an attempt to prop up the falling occupancy rates on its flights. Still, occupancy rate on Kathmandu-Delhi sector hovers around 50 percent, while occupancy rate on Kathmandu-Bangkok sector stands at around 60 percent.
"One of the primary reasons behind the fall in the occupancy rates is NAC´s inability to conduct flights regularly on time," a senior official of NAC told Republica. "That´s why we suffer the reputation of being unreliable and unpunctual airlines."
Currently, NAC is conducting all its international flights using two ageing Boeing 757s, one of which usually sits in the workshop for maintenance. Even on Wednesday, one of the NAC aircraft is in Israel for regular check-up, leaving the company with only one plane. Currently, this aircraft is covering all the international sectors, adding too much burden on this plane and resulting in delay or postponement of flights.
"If we can add more airplanes to our fleet and conduct flights on time, it will not take us long to restore NAC´s image as we are still one of the best airline companies in terms of in-flight services, including catering," the official said.
He added that new aircraft are also needed to gain an edge over other airlines in a very competitive air travel market. For instance, Indian Airlines, Jet Airways and Druk Air conduct regular flights on Kathmandu-Delhi sector. "Having known NAC´s reputation, people looking for reliable service rather than lower fares wouldn´t want to fly on Nepal´s national flag carrier," the source said.
NAC flies to six international destinations, namely, New Delhi, Bangkok, Hong Kong, Dubai, Doha and Kuala Lumpur. Of all these destinations, Kathmandu-Kuala Lumpur is the only sector which sees 90 percent occupancy rate since NAC enjoys monopoly on this route and because Malaysia is one of the most favored foreign employment destinations for Nepali migrant workers. Sectors such as Kathmandu-Dubai and Kathmandu-Doha also see influx of passengers largely because of flow of migrant workers.
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