Tuesday, December 14, 2010

NAC unions warn of stir

SANGAM PRASAIN

KATHMANDU, DEC 15 -

First, the Tourism Ministry decided to allow Air Arabia to operate flights in the Kathmandu-Kuala Lumpur sector under the Fifth Freedom Rights. Then came the parliamentary committee’s directive to scrap that decision. Now, Nepal Airline Corporation (NAC)’s unions have threatened that they will bring Tribhuwan International Airport (TIA) domestic operations to a grinding halt on Wednesday.

The NAC unions’ move comes two days after the parliament’s International Relation and Human Right Committee directed the tourism ministry to revoke the Fifth Freedom Rights given to Air Arabia.

Though the unions have presented four issues to justify their announcement to halt domestic airline operations the move, according to sources, is to pressurise the ministry to honour the parliamentary committee’s directive. “Our decision to halt domestic air operations at the TIA is meant to press the government to resolve the issues that are hampering NAC’s management and its future plans,” said Rajendra Regmi, president of National Employees’ Union at NAC.

The unions have also demanded that the government initiate the aircraft purchase process at the earliest and resolve the dispute between its executive chairman and managing director.

The tourism ministry, despite the committee’s directive, is yet to revoke its decision of granting Fifth Freedom Rights to Air Arabia. However, Tourism Secretary Kishore Thapa said the ministry has received the directive from the committee on Tuesday and also initiated the process to revoke the decision.

As per rules, it is the Civil Aviation Authority of Nepal (CAAN) that can cancel the privilege given to Air Arabia after getting orders from the tourism ministry. However, till Tuesday evening, the CAAN hasn’t received any such order from the ministry, said a CAAN source.

Giving a new twist to the issue, on Tuesday Abdul Wahab Mohamed K Al Roomi, director general of the Department of Civil Aviation, Sharjah, sent a letter to Tourism Minister Sharat Singh Bhandari, seeking his intervention to ensure smooth operation for the approved flights. “We have observed that certain sections of the media are highlighting a possible disruption of Air Arabia’s flight operation. However, given our excellent bilateral relationship between two countries and as per the Air Service Agreement, we hereby request your kind interference of your respectful authority to ensure smooth operation of the approved flights,” read Roomi’s letter. NAC is dead against allowing Air Arabia to operate Kathmandu-Kuala Lumpur sector as it would end the former’s monopoly in this sector. Currently, Kathmandu-Kuala Lumpur sector is the main lucrative route for the national flag carrier.

With the continuous surge in the number of Malaysia-bound migrant workers, the NAC doesn’t want any competitor in this sector. Air Arabia’s agent in Nepal argues that NAC hasn’t been able to cater to all passengers and there is space for one more airline in this sector.

Given NAC’s state of affairs, Air Arabia’s presence in the sector would surely hurt NAC’s market share. Further, Air Arabia has fixed the airfare much cheaper than that of NAC. As of now, Air Arabia has already sold around 600 tickets for Kathmandu-Kuala Lumpur flights. “We’ve not received any letter from the government stating that the permission given to us has been revoked,” said Rabi Singh of City Express, General Sales Agent of Air Arabia. “Hence, our flights will run as per schedule.”

PM denies meddling

KATHMANDU: Prime Minister Madhav Kumar Nepal on Tuesday said he did not exert any pressure on the Commission for the Investigation of Abuse of Authority (CIAA) regarding the plane purchase deal of Nepal Airlines Corporation (NAC). Stating that he did not try to influence the purchase deal by calling the CIAA secretary, the prime minister said, “My only concern was how the aircraft could be purchased on time and in a transparent manner.” The Public Accounts Committee had summoned the prime minister on his alleged pressure on the CIAA to slow down its probe into NAC’s aircraft purchase deal. (PR)