Monday, December 13, 2010

MoTCA to rescind, Air Arabia m’sia route


The ministry will issue the notice shortly to the airline, mentioning that the decision taken by the constitutional body cannot be ignored


SANGAM PRASAIN

KATHMANDU, DEC 14 -

The Ministry of Tourism and Civil Aviation (MoTCA) will issue a ‘notice of revocation’ to Sharjah-based Air Arabia that was allowed to operate flights in the Kathmandu-Kuala Lumpur airspace by the ministry on Dec. 2 under the Fifth Freedom Traffic Rights.

A day after the Parliament’s International Relation and Human Rights Committee directed MoTCA to revoke the decision, ministry secretary Kishore Thapa said it will issue the notice shortly to the airline, mentioning that the decision taken by the constitutional body cannot be ignored.

“We were waiting for the letter from the committee regarding this decision. The letter will be forwarded to the airline as soon as we receive the directive,” said Thapa.

Air Arabia was set to start service in this sector from Dec. 16. However, following pressure from the Nepal Airlines Corporation (NAC) and lawmakers, the committee took the decision to this effect. It said its decision was based on the ‘violation of Nepal Airlines Act-1962’. “We (the MoTCA) cannot overrule the decision made by the constitutional body. However, we will not be liable alone for any possible problems in this issue. The government will also have to suffer if any problem arises,” added Thapa.

The committee had also directed the ministry to amend the existing Air Service Agreement (ASA) to safeguard the country’s interests. Secretary Thapa said such a legal process needs an extensive discussion and the ministry will discuss the matter with the Ministry of Foreign Affairs and the Ministry of Home Affairs.

Even if the committee had not revoked the ministry’s decision, NAC still had another alternative to stop Air Arabia from operating. An international airline is required to sign an agreement with NAC to land at the Tribhuvan International Airport.

An agent of Air Arabia in Nepal said the government overlooked the woes of Nepali passengers who are compelled to fly to Malaysia through India and Bangladesh in the absence of NAC aircraft. “Permission to Air Arabia operation could have made things easier for those Nepali migrant workers.”

On Sunday, the committee meeting chaired by Padma Lal Bishwokarma concluded that the ministry violated the NAC act by allowing Air Arabia to operate Kathmandu-Kuala Lumpur flights. The committee said that it would hurt the national carrier’s business in the most lucrative sector.

The Kathmandu-Kuala Lumpur sector has emerged as the one of the most lucrative sectors for NAC over the last two years. NAC earns Rs. 8 million from a single flight, thanks largely to Nepali migrant workers.

With the continuous surge in the number of Malaysia-bound migrant workers, the NAC does not want to share this sector with other airlines. Air Arabia had also targeted migrant worker passengers.

According to the ministry, the decision was taken considering the lack of sufficient flights in this sector. The ministry was of the view that allowing Air Arabia in this route would bring in more tourists during Nepal Tourism Year-2011.

Reduced import raises, LP gas shortage fears

SANGAM PRASAIN

KATHMANDU, DEC 14 -

A number of gas bottling companies are facing a shortage of LP gas as Nepal Oil Corporation (NOC) has been receiving less than half of its quota from Indian Oil Corporation (IOC).

The bottlers said that gas shipments from Haldiya had resumed after a week while imports from Barauni had been slashed by 50 percent.

The Nepal LP Gas Industry Association (NLPGIA), the umbrella organization of

bottlers, said that NOC

had slashed imports by over 40 percent.

“There is little in stock after NOC slashed the regular quota, however, if the corporation does not fulfil the regular quota, a gas shortage is likely to cripple the country soon,” said Suresh Prajapati, general secretary of the NLPGIA.

The association said that although bottlers did not have adequate gas to supply to the market, they were relieved with the recent strike called against the price hike of petroleum products, as the dealers did not supply gas in the market.

According to the association, IOC has started forwarding the price of LP gas fortnightly as per the international price that has compelled NOC to cut imports as the price of gas in the international market was surging everyday and NOC was unable to make payments.

For the last 10 days, bottlers have been getting about 5 bullets (1,250 cylinders) from Barauni. The reduction in imports has forced three bottling companies to shut down, Prajapati said.

Gas sellers said that last month they received only 9,000 tons. The country’s monthly requirement of LP gas is 12,000 to 13,000 tons in the summer while in the winter, demand crosses 18,000 tons. Increased load-shedding has also push up demand in the winter.

“Now, the winter has started and consumption of gas will climb, however, if the issue is not sorted out, the country is likely to face a gas shortage soon,” Prajapati said. Until Oct. 13, gas bottlers have received only 50-55 percent of the regular supply.

However, NOC said that there would be no shortage of gas. “Although, shipments were down slightly in the last month and the first half of this month, the situation is improving,” said NOC spokesperson Mukunda Dhungel.

Dhungel said that trucks are being loaded and imports would ease within three-four days.

Meanwhile, the Gas Dealers Federation Nepal said that they have planned to continue a phase-wise agitation against the price hike on gas. “Our meeting scheduled for Wednesday will decide the next phase of the protest if the government does not heed to the demand to roll back prices,” said president Gyaneshwor Aryal. The dealers did not sell gas on Dec. 12.