Thursday, May 27, 2010

Unity Air not to get flight permit

SANGAM PRASAIN

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KATHMANDU, MAY 27 - The Civil Aviation Authority of Nepal (CAAN) has said the air operator certificate (AOC) would not be issued to the Unity Air, run by Unity Life International, a network marketing which the government banned recently.

The airline has been issued the license to operate both domestic and international flights. The airline had planned to purchase a 150-seater jet for Rs. 6 billion for international flight.

On March 23, Unity Air, a new player in the aviation sector, was permitted international operation license by the Ministry of Tourism and Civil Aviation (MoTCA). It acquired the domestic license on October.

In the first phase, the airline had targeted Doha and Dubai, which are major Nepali labour markets. It had also planned to operate a daily flight in the Kathmandu-Delhi sector.

In the second phase, Unity Air had a plan to fly Kathmandu-Delhi, Kathmandu-Doha, Kathmandu-Dubai and Kathmandu-Kuala Lumpur by the end of 2010.

After the finance ministry directed its subordinate bodies to suspend all bank accounts in the name of the company and stop sale of all fixed assets including vehicle in the name of the company, the CAAN also initiated the move of not issuing the AOC to the airline.

"In this state, we will not issue the AOC," said Ram Prasad Neupane, director general of CAAN.

As per the civil aviation regulations, Unity Air should put up a security bond of Rs. 5 million and have a paid-up capital of Rs. 500 million to get the AOC. The terms of reference document costs Rs. 50,000.

On the domestic side, the airline had paid-up capital of Rs. 150 million and bank guarantee of Rs. 1 million.

Similarly, an airline operating on the international route needs to pay Rs 500,000 per route of operation as royalty. For domestic route, it has to pay Rs 5,000 per STOL (short take-off and landing) and Rs. 10,000 for hub airport route.

An airline that has fulfilled the terms of reference to go international must obtain an air operator certificate within six months and start flights within a year of acquiring it.

The airline loses the security amount, bank guarantee fund and license if it does not acquire the AOC within six months, said Birendra Kumar Singh, under secretary at the civil aviation ministry.

Singh said the finance ministry had not issued any letter to scrap the license so far. Ministry of Foreign Affairs, however, has sought the company's business plan submitted to the MoTCA.

"We don't have the authority to scrap the license since there are other bodies above us to take action," he said.
347 summit Everest in spring

SANGAM PRASAIN

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KATHMANDU, MAY 28 - The spring mountaineering season ended on May 25 with 347 climbers making it to the top of the world's highest peak. Among the summiteers, 157 are foreigners and 190 Nepalis, said Tilak Pandey, a government liaison officer.

According to Pandey, nine Sherpas and a foreigner ascended Everest on May 5 to fix ropes. On May 17, 93 climbers including 41 foreigners and 52 Nepalis made it to the summit. On the same day, Nepali world cyclist Pushkar Shah climbed Everest.

On May 22, Appa Sherpa, climbing with the Eco Everest Expedition, broke his own world record and reached the top of the world's highest mountain for the 20th time. Arjun Vajpai, the youngest Indian Everester, also made his successful ascent on that day.

May 23 saw 132 climbers including 62 foreigners and 70 Sherpas reaching the top.

On May 24, there were 26 summiteers (13 foreigners and 13 Nepalis); and on the last day of the season on May 25, 18 mountaineers reached the summit.

Chewang Nima Sherpa, in a bid to equal Appa Sherpa's record, made two ascents of Everest during the spring season just ended. He has 19 Everest ascents under his belt.

The Ministry of Tourism and Civil Aviation received applications from 26 expeditions to climb Everest during the spring season compared to 27 last year. Altogether, 245 mountaineers receive permits to ascend Everest.

The government has collected Rs. 220 million in mountaineering royalty during this spring season. The royalty for Everest ranges from US$ 25,000 to US$ 50,000 per expedition depending on the number of members (which should not exceed 15) and the route.

According to government statistics, 3,128 mountaineers have summitted Everest till date. This season, the 2010 IMG Everest Expedition-I was the highest royalty-paying agency. It paid Rs 10.08 million for 15 Everest expedition members. The International Everest Expedition 2010 was the second highest royalty payer with Rs 10.07 million for 15 summiteers.
Taskforce suggests turning NAC into public company

SANGAM PRASAIN


KATHMANDU, MAY 26
A taskforce formed to study the procedures to convert Nepal Airlines Corporation (NAC) into a company has suggested that it be converted into a public limited company under the public-private-partnership model.
The taskforce submitted its report to the Minister of Tourism and Civil Aviation Sarat Singh Bhandari on Wednesday. Minister Bhandari said that the ministry was committed to implementing the recommendations in the report. "NAC would be viable if it was converted into a company," said Bhandari.
The government on Jan. 11 had formed a taskforce under the coordination of Murari Bahadur Karki, under secretary at the Tourism Ministry. However, the PPP model has been proposed by the government and other stakeholders several times in the past.
The taskforce has recommended that the new company be named Nepal Airlines Corporation Limited (NACL). It has recommended that the authorized capital and issued capital of the company be Rs. 30 billion and Rs. 28 billion respectively. It has suggested reducing the government's stake in the airline. According to the report, after converting NAC into a company, the stake of strategic partners will be 51 percent and the government's stake will be 49 percent.
Of the share allotted to the government, the taskforce has suggested that 10 percent be sold to tourism entrepreneurs, 5 percent to NAC staff and 15 percent to the general public. The remaining 19 percent should be kept by the government, said the taskforce.
The report has suggested that NAC be allowed to exercise the rights of the national flag carrier and ground handling authority even after its conversion into a company. The existing salaries, allowances and other facilities will remain unchanged, and the jobs of all the staff must be guaranteed, says the report.
The report has said that the amount of the investment will not be the decisive factor while choosing strategic partners. Experience in international aviation and financial and management capacity should also be taken into consideration when selecting strategic partners, states the report.
The Tourism Ministry will forward the report to the Ministry of Finance for further assessment. Meanwhile, NAC's overall assets have been evaluated at Rs. 16.80 billion. The assets evaluation report has valued the lands and buildings owned by NAC at Rs. 12 billion.
Three Star hotels settles disputes
Sangam Prasain
KATHMANDU, DEC 04, 2009- Maoist-affiliated hotel workers have settled their disputes with the management of three leading five-star hotels.

All Nepal Hotels and Restaurant Workers' Union (ANHRWU) and the management of The Yak & Yeti, Hyatt Regency and Del' Annapurna on Thursday agreed to increase the salaries of the workers on a flat rate.

According to ANHRWU general secretary Prakash Shrestha, Hotel Del' Annapurna has agreed to increase Rs. 1200, while, Hyatt Regency and Yak and Yeti agreed to increase Rs. 1300 in the workers' existing salaries.

The ANHRWU was demanding a 40 percent increase in salary and a 100 percent increase in dearness allowances. "We are holding discussions with the management of the Radisson Hotel," said Shrestha.

"We hope to reach a settlement with Hotel Malla, Hotel Everest and Hotel Dwarika's by Sunday," he added. B.K Shrestha, managing director at the Radisson Hotel informed that discussion was in progress.

According to Shrestha of ANHRWU, the management of the five-star hotels and the respective unions initiated the process to solve the dispute after Hotel Association of Nepal (HAN) stepped aside from the issue. Maoist-affiliated ANHRWU began agitation in three five-star hotels-Radisson, Hyatt Regency and Yak and Yeti-two weeks ago.

ANHRWU has also given an ultimatum to the hotels in Chitwan, Pokhara and Nagarkot to meet their demands.

Madhav Om Shrestha, general secretary of HAN said that the union had been holding talks with the management of different hotels since Wednesday.

There are 65,000 workers working in different hotels and restaurants across the country directly and indirectly and there are 1300 to 1400 restaurants in the Kathmandu Valley.
Reds’ donation drive has pvt sector quaking
SANGAM PRASAIN
KATHMANDU, APR 26 -
The business community is tearing its hair, quaking in its boots and bemoaning the state of afffairs, severally, over the forcible donation drive launched by the UCPN (Maoist). For the entrepreneurs, it is a nightmare that they feel they will never wake up from.

Maoist cadres on Monday vandalised the office of Hulas Steel at Kantipath after its parent organisation Golchha Group refused to entertain their demand for a huge sum of money. “They were demanding Rs. 5 million from us,” said Diwakar Golchha, a Constituent Assembly (CA) member and industrialist. According to Golchha, two CA members representing the Maoists were also involved in the vandalism but he did not give their names. He said that his organisation has reported the incident to the police.

This is not an isolated case. Entrepreneurs have complained that the Maoist drive is rampant in Kathmandu, Bhairahawa, Butwal, Narayangadh, Hetauda, Birgunj and Biratnagar as well as other places.

President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi said the business community is terrorised by the forced nature of the donation drive. According to FNCCI sources, the Maoists are demanding amounts ranging from Rs. 50,000 to more than Rs. 1 million from entrepreneurs.

The Maoists have also asked the business community to manage food, shelter and clothes for the Maoists activists who have come to the capital to participate in the May 1 mass protest.

However, the Maoists denied allegations of extortion saying that it is just a rumour being spread to defame them. Senior Maoist leader Janardan Sharma said Maoist chairman Pushpa Kamal Dahal has requested the business community to provide donation voluntarily.

Hoteliers also have complained that they are being forced to pay above Rs. 200,000 for five-star hotels and above Rs. 50,000 for two-star hotels. According to businessmen, owners of big shops in the capital have been told to cough up above Rs. 100,000 each.

They have complained to the police that the Maoists have ordered them verbally and in writing to manage food and shelter for the Red cadres. Many hoteliers in Kathmandu Valley, Dhulikhel and Nagarkot have received such letters. Ongoing housing projects have also been told to provide shelter to Maoist cadres.

The Confederation of Nepalese Industries (CNI) has requested all concerned not to impose bandas and strikes.
Hotels’ kitchen fires burning low

SANGAM PRASAIN
KATHMANDU, MAY 04 -
Star-hotels across the Capital are facing shortage of perishable goods like vegetables, dairy products and meat items due to the indefinite general strike called by the UCPN (Maoist).

Since three consecutive days, the hospitality sector which was already affected by mass cancellation of bookings made earlier by tourists coupled with the Maoists’ donation drive is now suffering from a shortage of victuals.

According to hoteliers, there is adequate food grains and other items in stock for more than four months and there is little chance of such items falling short. It is the shortage of greens, meat and dairy products that has landed them in trouble.

Five-star hotels that were normally consuming over 10-20 kgs (single vegetable items) are now facing a severe shortage since Tuesday.

“We are having a tough time procuring vegetables and meat,” said Krishna Shrestha, purchase manager of Hotel Everest, adding that there was hardly 3-4 kgs each of vegetable items at the hotel.

According to him, the pitiful quantity has to suffice to feed the 350 staff apart from the guests staying at the hotel. “Due to the shortage of dairy items and meat, three restaurants inside the hotel have already been downed their shutters,” he said.

He said that the hotel used to procure vegetables from Kalimati market. “However, the strike over three consecutive days has forced us to manage foodstuff in the evenings from local vendors and markets near the hotel,” he said.

The hospitality sector and the common are however, getting some respite as the Maoists have allowed markets to open from 6 pm to 8 pm everyday for purchasing essential supplies. However, essential supplies, particularly perishable goods, are in short supply due to the lack of means of transportation.

“We are running out of stock of fresh vegetables and meat items,” said Chudamani Sunwar, a cook at Hotel Shankar, Lazimpart. He said that the hotel had stocked fresh vegetables and meat items for three days and all the stock has been exhausted.

The hotel usually consumes over 80 kgs of vegetables (varying according to customers) each day. The consumption of meat and meat related items was 40-45 kgs each day before the strike. He said that the hotel management is managing the supply of vegetables through itinerant vendors and porters.

Murari Biyala of Grand Hotel, Tahachal, said the hotel used to purchase vegetables worth Rs 6,000 to Rs 8,000 daily but now the purchase has plunged to Rs 2,000 to Rs 3,000 each day. “Unavailability of vegetables has worsened the situation,” he said.

He further said that the hotel was managing to supply some common vegetables but there was a shortage of expensive vegetables like as mushroom, beetroot, broccoli, among others.

Madhav Om Shrestha, executive director of Hotel Association of Nepal, said tourists putting up in different hotels in the Capital are anxious to leave the country at the earliest. On the other hand, the number of arrivals has started dropping.

Vegetable markets are mostly closed and within the given time by the Maoist to open, they provide only a few vegetables. This has also increased the prices of essential supplies.
Maoist strike hits domestic airlines
SANGAM PRASAIN
KATHMANDU, MAY 04 - The nationwide indefinite strike called by the UCPN (Maoist) has compelled domestic airlines to cut down the number of regular flights across the country since two days. Airlines officials said that they were compelled to cut the number of regular flights by over 40 percent due to low passenger bookings. If the strike prolongs, regular flight movement may reduce by over 60 to 70 percent, different airlines officials said. According to them, the cancellation of a single flight results in the loss of at least Rs 100,000. They said the lingering strike may compel their companies to cut more of the regular flights. Buddha Air said that passenger movement had dropped to 540 from the usual 1,500 each day. "We have reduced our regular flight operations by more than 50 percent," said Rupesh Joshi, marketing manager of Buddha Air. According to him, Pokhara and Biratnagar sector flights have been reduced to a single flight per day from the regular four per day. Similarly, Agni Air has totally stopped the Kathmandu-Biratnagar sector flight on Monday. There were four daily flights in the sector. "On Sunday, there was a single flight in the sector and we have decided to operate one aircraft in Biratnagar on Tuesday," said Pramod Pandey, marketing manager of Agni Air. According to him, regular flights in Bhairahawa and Bhadrapur have been reduced to just one per day. Earlier, the airline was operating three regular flights in each sector. Pandey said that on Tuesday they have planned two flights against the regular four flights. However, flights in Lukla and Jomsom have not been affected. The airline is operating five regular flights in Lukla and three in Jomsom. He said that there was some tourist movement in Lukla and Jomsom, and as a result the airline remained unaffected. "We are bearing a 40 percent loss daily compared to what we used to collect when the fare collection was normal," Pandey said. Yeti Airlines has reduced its regular flights by 50 percent due to low passenger bookings in different sector. The airline has also merged its Kathmandu-Dhangadi sector flights with its Nepalgunj flight. Binay Shakya, manager of Yeti Airlines, said they were compelled to reduce a dozen flights to two flights in Pokhara, three flights in Bhadrapur and two in Nepalgunj and Bhairahawa, respectively, on Sunday. Guna Airlines also has cut three flights in the Kathmandu-Pokhara sector from its regular five flights. Prajwol Thapa, marketing manager of Guna Airlines, said flights in the Kathmandu-Biratnagar sector were totally cancelled on Sunday. The airline used to operate two regular flights in the sector. "However, flights scheduled in Simra remain unaffected," he said.