30 August 2024, Kathmandu
The Ministry of Culture, Tourism, and Civil Aviation has issued a formal request for an explanation from Yuvraj Adhikari, Chairman of Nepal Air Service Corporation (NAC), following significant disruptions in service due to simultaneous C-checks of two widebody aircraft.
Government Demands Explanation from NAC
The government has given Adhikari a seven-day deadline to respond to concerns regarding these issues.
The decision, announced by Tourism Minister Badriprasad Pandey, comes after NAC faced severe operational disruptions when both widebody aircraft were sent for mandatory C-check maintenance simultaneously. This action led to significant service interruptions, affecting flight schedules and passenger services.
The Ministry has requested a detailed written explanation from Adhikari, including objective reasons and evidence for the decision to send both aircraft for maintenance at the same time. The Ministry’s inquiry includes addressing eleven specific issues, ranging from procedural lapses to financial mismanagement.
Among the key questions, the Ministry has asked why NAC chose a maintenance, repair, and overhaul (MRO) company that failed to complete the work on time and why there was a lack of transparency and quality in technical testing and spare parts procurement. Adhikari is also required to explain why expired visas of technical staff led to further delays and the resulting damage to NAC’s credibility and operational efficiency.
Additionally, the Ministry has raised concerns about NAC’s failure to manage its assets effectively, the financial losses incurred due to fines from delays and fraudulent activities, and the overall decline in the corporation’s performance. The Ministry has questioned the chairman’s responsibility for the additional financial liabilities and losses incurred, including a significant loss of approximately 2 crores due to a phishing scam.
The letter also highlights NAC’s poor strategic planning, particularly during peak tourist seasons and important festivals, which has exacerbated the service disruptions. It demands clarity on NAC’s failure to manage its loan obligations and the impact of employee layoffs on the corporation’s financial health.
Minister Pandey emphasized that NAC, as the national flag carrier, must operate safely, competitively, and profitably. The Ministry’s action reflects concerns about repeated negligence and inefficiencies that are undermining NAC’s operational standards and financial stability.
In light of these developments, the Ministry’s request for explanation underscores the urgent need for NAC to address its operational challenges and restore its service standards to maintain its role as a key player in Nepal’s aviation sector.
Government Demands Explanation from NAC