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NAC employees against decision to lease aircraft

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By No Author
KATHMANDU, March 26: Pilots and staff of Nepal Airlines Corporation (NAC) have come out against the management’s decision to lease an aircraft from North American Airlines, stating that the state-owned company should focus on purchasing its own plane rather than hiring. The divergent views have come to the fore at a time when NAC is about to finalize the deal with the American carrier.



Some two months ago NAC started a public bidding process to lease a plane for a period of six months. Of the 19 companies that participated in the bidding, North American had quoted the lowest rate of US$3,690 per hour of flight. NAC management may award the deal to the American company any time now. [break]



The addition of the aircraft to NAC’s fleet is expected to spruce up its service which has been labeled ‘unreliable’ by many. The state-owned company at present has only two jet airliners, one of which is in the garage most of the time, forcing cancellation or postponement of many scheduled flights.



“We know NAC is in a critical condition. And we are not against their move. All we are asking is an assurance to purchase at least one aircraft,” Bobby Bikram Singh, vice-president of Nepal Airlines Pilots Association, told myrepublica.com. Singh was referring to the commitment expressed by the government in the budget speech to arrange funding for the purchase of at least two new aircraft for the company.



He said: “When the government has given a guarantee to acquire necessary funds for buying the planes, NAC should have pursued this option rather than wasting its time leasing an aircraft.” The three employees´ associations at NAC have also supported the demand raised by the pilots’ association. However, no demonstrations have been held so far to highlight the demands.



NAC is acquiring the aircraft from North American on a wet lease, under which the aircraft supplier provides the pilot, bears the maintenance cost, and insures the aircraft and crew. NAC has to pay a minimum of Rs 82.19 million per month for the wet lease.



This is the first time the state airline is leasing an aircraft since 2001.



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