NAC hesitates to discuss about Wide body
16th Nov, 2018 | Tourism Mail Crew
KATHMANDU, Nov 16: Nepal Airline Corporation (NAC) conducted the press meet on Thursday in which they issued the white Paper which stated the current financial status of the company.
As per the information provided by whitepaper, NAC’s cash flow condition further deteriorated after its two wide-body aircraft started operation on August 1. Following NAC’s inability to fly its Airbus A330 wide-body aircraft in a full-fledged manner, the corporation has been facing huge loss in the operation of these aircraft. NAC has made Rs 264 million earnings through its two A330 wide-body aircraft — between August 1 and September 15 — while it has spent Rs 756 million for their operation.
While questions were raised about the purchase of white body aircraft, whether it is bought in lease or by purchasing and about the frequent grounding of NAC’s Aircraft the officials couldn’t give the answers. The sources of NAC have also stated that enough market analysis was not done before purchasing the wide body aircraft as NAC’s wide-body aircraft have not been able to fly to long-haul destinations which they were meant for.
The Executive Chairman of NAC, Madan Kharel also urged the government to provide financial support. Acknowledging that NAC has not been able to make use of its wide-body aircraft properly, Kharel said the government’s support to NAC was essential until the corporation was able to stand on the firm financial ground by operating the wide-body aircraft in a full-fledged manner.
The whitepaper stated that along with the procurement and operation of wide-body aircraft, NAC’s overall debt has reached Rs 32.87 billion and its debt to equity ratio is 14.40:39.82. As NAC has to pay interest of the debt at 10.5 per cent per annum, the corporation has been facing cash flow problem.