'Preparations underway for restructuring of NAC through management contract'

KATHMANDU: The government is gearing up to implement a management contract for Nepal Airlines Corporation (NAC).

Minister for Culture, Tourism and Civil Aviation, Sudan Kirati, stated that steps are underway for the NAC's restructuring through a management contract.

During a meeting of the International Relations and Tourism Committee of the House of Representatives (HoR) on Tuesday, Minister Kirati announced, "We are preparing to adopt this system as we need to incorporate a management contract for the Corporation's restructuring."

The Ministry has already submitted a proposal for a management contract to the cabinet. "A decision on this matter will be made shortly," he added.

Minister Kirati insisted that changes in the NAC were essential through a management contract, based on studies and recommendations from stakeholders.

He suggested that since the management contract approach has yielded positive outcomes in various countries, it could also be suitable for Nepal.

On this occasion, Minister Kirati revealed that the Ministry has concluded that the national flag carrier cannot continue in its current state, and plans have been devised to reform the organisation structurally.

Meanwhile, lawmaker Udaya Shumsher JB Rana emphasized the need for the NAC to strengthen its presence in the international market, even if it means adding more aircraft.

Similarly, lawmaker Dr Dhawal Shumsher JB Rana agreed that the NAC's management contract was appropriate, but insisted it should proceed only if relevant.

However, lawmaker Prem Suwal disagreed with the idea of a management contract for the NAC and urged everyone to take responsibility for improving the NAC's current status.

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