Private sector urges government to buy aircraft for NAC

The private sector has requested the Prime Minister to immediately take decision on buying aircraft for the ailing national flag carrier.
Submitting a Petition to him at the latter's office, they said that Nepal Airlines Corporation (NAC) needs an aircraft from any manufacturer as the aircraft is important not the manufacturer.
"The NAC has not bought an aircraft for last 24 years," said the memo signed by presidents of over two dozen organisations including Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Kush Kumar Joshi, Confederation of Nepalese Industries president Binod Chaudhary, Nepal Chambers of Commerce president Surendra Bir Malakar and Hotel Association of Nepal president Prashiddha Bahadur Pandey.
"When NAC management decided to purchase aircraft strictly following the Public Procurement ACT (PPMO) the top management have been accused of graft," they said, requesting the government to immediately authorise the purchase of aircraft to save the Nepali travel industry, national carrier and also to benefit the Nepali labour, who are at the mercy of international carriers flying to Nepal.
They claimed that te tender was legal and should not be cancelled under any condition. "If airbus is not the right choice then Boeing aircraft should be bought, but at the government has to buy aircraft fro the national flag carrier at any cost," according to them.
"If the aircraft is not bought the country’s image will suffer internationally and the government and people will be perceive as liars," they reasoned, blaming the anti-graft body for conspiring to close the national carrier. "If the tender is cancelled, NAC will not be able to buy aircraft for another five to 10 years which will definitely lead to a closure of NAC."
At present the price of the aircraft has gone up by 10 per cent to 15 per cent, which will eventually not only lead NAC to inable to buy another aircraft but also cause heavy loss."
They claim that the NAC has followed the Public Procurement Act and sent the lock up money as commitment fee, which ensures delivery of aircraft on time and guarantee the price will not increase.
"Had there been not political bickering, the NAC would have received one aircraft by last September 15 giving boost to the Nepal Tourism Year 2011," they added.
The NAC is buyig the A320 for $41.5 million for one aircraft where as Air India has recently ordered 49 A320 for $43.5 million due to an increment of $2 million recently.