Govt Seeks 11-Point Clarification from NAC Executive Chairman over Delay in Aircraft Repair

The Ministry of Culture, Tourism, and Civil Aviation has demanded an explanation from Nepal Airlines Corporation's (NAC) Executive Chairman, Yuvraj Adhikari, for sending both of the state-owned airline's widebody aircraft abroad for a comprehensive C-Check, leading to a service disruption during a high-demand period.

The ministry noted that the NAC had a significant business opportunity at this time due to high traffic and soaring ticket prices. It has given Adhikari a seven-day deadline to respond to an 11-point inquiry.

The ministry raised questions regarding the delay in aircraft repairs and C-Checks, arguing that these are routine procedures. It questioned why both Airbus A330 aircraft were sent for C-Check simultaneously, particularly when the procurement process for necessary parts and services was not initiated in time, resulting in prolonged service disruption.

Additionally, the ministry questioned the decision to select the Aircraft Maintenance, Repair, and Overhaul (MRO) company for the C-Check, despite its delays in completing similar work earlier. The ministry asked why Adhikari should not be held accountable for the financial damage caused by these delays.

The ministry also inquired about the decision to send a technical team whose visas had expired for the C-Check. It asked why an alternative team was not sent after renewing the visas, instead of negligently incurring additional financial liabilities for the NAC.

Further, the ministry requested an explanation for the loss caused by the NAC planes not operating at full capacity during a crucial period for Nepal's tourism sector and the major festive season. It emphasized that strategic planning and scheduling should have been in place to avoid grounding the aircraft during such a critical time.

The ministry also asked how many times the NAC had been fined in different countries for failing to fly on time and demanded details and reasons from the official. It referenced an incident last year when NAC suffered a loss of Rs 20 million after employees at the Dubai Station paid the amount based on details sent through a hacker's email without verifying the bank account information.

Finally, the ministry raised concerns about the increasing debt obligations of NAC. The letter questioned Adhikari's responsibility for the additional financial liability created by NAC's failure to pay Rs 51.26 billion in interest by mid-April 2024. The corporation's debt burden continues to rise due to its inability to repay loans taken from the Employees' Provident Fund and the Citizens' Investment Trust for purchasing aircraft.

Adhikari explained that the company initially promised to complete the C-Check of NAC's A330 aircraft 9N-ALY by August 25, 2024. However, due to additional technical issues detected during inspection, including main landing gear bush rotation, fuel tank problems, and rubber degradation, the aircraft is now expected to be ready by September 7.