KATHMANDU, SEP 15 -
The process of appointing a new executive chairman of Nepal Airlines Corporation (NAC) through free competition is likely to proceed without legal hassles following the resignation of executive chairman Manarup Shahi.
NAC has been hamstrung by its ambiguous dual power structure with an executive chairman and a managing director who are often at loggerheads with each other.
Shahi’s resignation has cleared the way for the Public Enterprises Directorate Board (PEDB) to select a new chief executive who will have full executive powers. Shahi tendered his resignation to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) on Sunday.
PEDB chairman Bimal Wagle said that it would take some time to shortlist potential candidates from among the seven applicants.
The qualifications for the top post at NAC are a Master’s degree, 10 years’ experience in civil aviation and tourism promotion, administration, management, trade, production, engineering and law. The candidate should not have invested in the stock of private airlines.
However, industry experts have said that turning the crisis-ridden NAC around would not be possible only by bringing an experienced chief. The company needs to be operated in a strategic partnership under a private organisational model, they said.
Aviation analyst Hemant Aryal said that NAC’s new chief should have a better understanding of the business and be able to take bold decisions with an honest motive.
“Appointing an experienced chairman will not be enough to revive the national flag carrier,” said aviation analyst Kumar Chalise. “A strategic partnership is the need of the hour for NAC to overcome its present challenges.”
The government has proposed a number of times finding a private strategic partnership for NAC, but the idea has been dropped. Considering NAC’s poor performance at present, it could be difficult finding a partner or investor willing to put money in it. “First of all, NAC needs a base to attract a strategic partner. It should have a strategic advantage,” said Ashok Pokhrel, a travel trade entrepreneur, who is also a board member of NAC.
According to him, the new chief should be able to bring a strategic partner, and the government should allow the carrier to be privatised in order to attract a partner. “The sole reason that has brought NAC to this state is political interference, and this should be stopped if any reforms are to be done at the national flag carrier.”
Aryal said that no private or foreign player would be interested in becoming a strategic partner considering NAC’s present state.
The carrier’s international fleet consists of two ageing 757s, and flying them has become economically unviable due to high maintenance costs. It now flies to only five international destinations — Dubai, Doha, Bangkok, Kuala Lumpur and Hong Kong — compared to 14 cities in 2001.
Competition with other international carriers connecting Nepal is another major challenge for NAC. Nepal is served by 27 international airlines, nine of which entered the scene in the last three years.
Source: http://www.ekantipur.com/2012/09/15/business/nac-boss-appointment-process-to-move-ahead/360273/
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