Nepal Airlines Corporation grounds all its Chinese aircraft

The national flag carrier has, finally, grounded all its six Chinese aircrafts – from today – citing operational loss.
“Two aircraft had been already grounded earlier and the remaining four have also grounded from today,” Nepal Airlines Corporation (NAC) spokesperson Archana Khadka confirmed, adding that the NAC will, now onwards, be operating its two Twin Otter aircraft for domestic flights. “We have submitted a letter to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) to do the needful with the four aircraft that were grounded today.”
As the government has the entire ownership of those all aircraft, the NAC has handed over the responsibility to the ministry, which will now take further decision on what to do with these aircraft. The grounded Chinese aircraft could be returned or sold to other airlines company.
NAC had received one MA60 and one Y12E aircraft on aid from the Chinese government, whereas bought one MA60 and three Y12E from Chinese aircraft manufacturer Aviation Industry Corporation of China (AVIC International Leasing) to fly them on the domestic routes.
“The corporation’s board decided to ground all the aircraft, as all the six aircraft were not able to make any profit,” Khadka said, adding that the corporation has already faced losses amounting to Rs 1.90 billion till last fiscal year. “Thus, the national flag carrier cannot afford these aircraft anymore and now the government itself has to decide what to do with these aircraft.”
“The insurance cost of the Chinese aircraft is 35 per cent higher than other aircraft,” according to the NAC that has hired a different sets of pilots as the pilots with national flag carrier cannot fly the Chinese aircraft. “The NAC itself has to train pilots for the Chinese aircraft, which is a very expensive affair,” a board director of NAC said, adding that lack of instructor pilots for these aircraft has also made these aircraft more costlier than for other aircraft.
Similarly, the spare parts of the Chinese aircraft are also 75 per cent more expensive than those required in other aircraft. “It takes almost two months for the company to deliver the spare parts to Nepal,” the NAC claimed, adding that the aircraft had to be grounded for a long period waiting for the spare parts to come from China.
The NAC had signed an agreement with AVIC International Leasing in 2013 which saw the Chinese firm donate one MA-60 and one Y12E on condition that the carrier take three more Y12Es and one more MA-60 using a Rs 3.72 billion ($35.4 million) soft loan from China's Exim Bank. Nepal Airlines has slowly taken delivery of the promised aircraft, but has complained of their unsuitability for Himalayan terrain.
But after five years, and with the loss of above Rs 5 billion, Nepal Airlines Corporation, has completely grounded the Chinese aircraft from today. Nepali aircraft has been banned from flying into the European Union (EU), after Nepal acquired Chinese aircraft.    

Representative of airline firm trying to influence court

The family members of Nepali passengers killed in the US-Bangla aircraft crash in March last year blamed the Nepal representative of the airline company for trying to influence the court hearing.
Organising a press meet in Kathmandu today, they claimed that the Nepal representative of the airline company has refused to provide compensation amount they are seeking and resorted to intimidating them to sort the issue out of court.
On November 1, senior advocate Devendra Pradhan – from Pradhan & Associates – who is representing the airline company, sent a letter to the victims’ legal adviser putting pressure to withdraw the case and settle the matter through personal discussion, informed legal adviser of the family members of the victims Amrit Kharel.
The Nepali law firm hired by the Bangladeshi carrier has been pressurising the families of victims to withdraw our lawsuit, Kharel said, adding that it is against their fundamental right to a 'fair trial' and the 'independent judiciary’ system.
A scheduled US-Bangla Airlines flight from Dhaka to Kathmandu – on March 12, 2018 – crashed while landing at Tribhuvan International Airport (TIA) and 51 passengers including 22 Nepalis were killed. There were 71 people, including four crew members, aboard the 76-seater Bombardier of the US-Bangla Airlines. The families of seven of the deceased passengers – including MBBS students Ashna Shakya, Anjila Shrestha, Meeli Maharjan, Neega Maharjan, Princy Dhami, Sanjaya Maharjan and Shreya Jha – filed the suit in Kathmandu District Court on July 31 for unlimited compensation citing wrongful death, nearly a-year-and-a-half after the disaster.
“The hearing was set for November 6,” the plaintiffs' lawyer Kharel said, adding that the victims’ family postponed it after the law firm – Pradhan & Associates – emailed me stating that ‘the report prepared by Nepal’s Accident Investigation Commission was not admissible as evidence as per various Nepali statutes’.
The commission released its report in January 2019, concluding that the captain of Flight BS 211 was 'stressed and emotionally disturbed'. Evidence confirmed that the captain was mentally unstable and unfit to fly.
The families of the seven medical students who died in the crash have sued the airline for $19.09 million, Kharel said, adding that the lawsuit was filed based on the report of the government's Accident Investigation Commission. “But a copy of the email dated November 1 reads that Pradhan & Associates already knew that the court proceeding slated for November 6 will be dismissed for lack of jurisdiction.”
Though out of the court settlement is a usual practice but putting pressure on victims’ families is illegal.
According to the father of one of the victims Anjila Shrestha, Bidhur Man Shrestha, they had knocked on the court’s door after the airline refused to pay reasonable compensation. “The law firm had offered $50,000 per person,” he said, adding that they have been frequently pressurising to take the compensation amount that they have fixed.
The families of the victims have already been given $20,000 as an advance payment.
“Advocate Pradhan also claimed that six out of the seven cases would be dismissed by the court during the hearing that was scheduled for November 6,” Shrestha said, adding that the families of the victims have the right to file a lawsuit, and it’s their fundamental right.
However, the email – sent by Pradhan & Associates to the plaintiff’s lawyer Kharel and distributed at the press meet – reads that the plaintiffs have relied on claims of 'gross negligence' and 'willful misconduct' under Article 25 of the Warsaw Convention 1929, which is not applicable to these lawsuits. “We prepared to raise these issues very strongly apart from other issues before the court to seek dismissal of these lawsuits,” the email reads, adding, “It is our belief that plaintiffs can still avoid the unfavourable situation.”
US-Bangla wishes to extend plaintiffs a full and final settlement out of the court on the terms offered to them previously in order to avoid lengthy litigation which definitely will take several years, it adds.
The email ends with somewhat threaten, “Please judge your action accordingly. We are more than happy to discuss this matter further.”
The families of the 15 other Nepali victims and a Bangladeshi victim have also been seeking legal remedy to get their rightful compensation separately by hiring another law firm in Kathmandu.
US-Bangla Airlines took insurance coverage of $107 million through two local insurance companies – Sena Kalyan Insurance Company and Sadharan Bima Corporation – consisting of $7 million for the aircraft and $100 million for passenger liabilities.
However, after receiving the e-mail from Pradhan, the victims’ families had postponed the hearing citing that one of their advocates was unable to attend the hearing.
Families of the seven victims, who were all pursuing MBBS in Bangladesh, had filed a joint lawsuit on July 31 demanding total compensation of Rs 2.10 billion after the Bangladeshi airline company failed to release the applicable compensation amount. After that the airline company had offered $50,000 to each victim family. However, the families have refused to settle, seeking compensation that includes study expenses and expected income of the deceased students.

Airlines add flights to ease festive commute

Domestic airline companies have increased flights to facilitate festive commuters.
According to Airlines Operators Association of Nepal (AOAN), the airline companies have increased flights to destinations where the flow is comparatively higher. “Airline companies have increased the number of flights to various destinations as per the demand of the public,” AOAN spokesperson Yog Raj Kandel said, adding that the passengers have been complaining that they are facing hassles in obtaining air tickets, thus additional flights will ensure availability of air tickets during Dashain festival. “The airline companies have increased up to 50 per cent flights to various destinations depending on the flow of passengers.”
The flow of air passengers during Dashain has gone up significantly in recent years forcing the airline companies to add flight frequency also due to bad road conditions. This year too, the airline companies are ready to further add more flights in Dashain, if required, he said.
However, the passenger occupancy in flights from Kathmandu to various destinations is almost 100 per centbut occupancy in the flights to Kathmandu is less than 20 per cent due to out flow of people from Kathmandu to their respective home districts. It is expected that almost 2.5 million people will leave Kathmandu during Dashain festival. According to the Traffic Police, almost 1.5 million people have already left the valley till today.
Likewise, transport entrepreneurs have also added vehicles on routes where the flow of passengers is higher.
According to general secretary at the Federation of Nepalese National Transport Entrepreneurs Saroj Sitaula, they have added the buses on long and short routes to cater to the urgency of the passengers to reach home for festival. The Department of Transport Management has also opened all land routes for all public vehicles across the country.

Himalaya Airlines announces direct flight to Dhaka

Himalaya Airlines has announced the direct flights on Kathmandu-Dhaka-Kathmandu route from July 22. The airline will operate its A320–214 narrow bodied aircraft on the route, configured with 150 Economy Class and 8 Premium Economy Class seats, it said, adding that the airline has a fleet of three new Airbus 320-200. “The new flight schedule offers expedient travel options for leisure and business travelers.”
Bangladesh being a major volume market for Nepali tourism, the inbound connectivity shall focus predominantly on getting Bangladeshi tourists on board, the airlines informed. “With the airlines’ regular flights to Middle East destinations like Doha, Dubai-Abu Dhabi, and Dammam, the new sector shall also significantly project Kathmandu as a transit hub for Bangladeshi passengers.”
“We take pleasure to announce our connectivity to another Asian Destination, Dhaka in Bangladesh shouldering our role in contributing to the promotion of tourism and business amongst neighboring countries,” said vice president–administration Vijay Shrestha.
“This connectivity will boost new business opportunities between Nepal and Bangladesh and shall also serve as a bridge between the Middle East Countries and Bangladesh,” he said, adding that Himalaya Airlines shall be committed to continuing excellent service flavored with Nepali hospitality to its valued passengers. “The thrice weekly schedule have convenient timings, where flight H9 678 departs from Kathmandu at 11:10 hours (local time), and lands at 13:10 hours (local time) in Dhaka. The return flight H9 679 departs from Hazrat Shahjalal International Airport at 14:10 hours (local time) the same day and arrives at Tribhuvan International Airport (TIA) at 15:20 hours.”
The Free Baggage Allowance for both the routes is 25 kg for Premium Economy Class and 20 kg for Economy Class, he added. “The airline aims at ensuring on-time flight performance.”
The airline has appointed SAir Air BD Ltd as its General Sales Agents (GSA), who will represent the airline in Bangladesh and will be responsible for the airline’s sales and marketing, market development, reservations and ticketing services.
Established in August 2014, Himalaya Airlines – a Nepal-China joint venture provides international air services to five destinations including Abu Dhabi, Dammam, Doha, Dubai, and Kuala Lumpur, apart from Dhaka as the sixth one.

Nepal Airlines to auction second Boeing

Nepal Airlines is publishing an auction notice for its last Boeing 757 – marking the the end of the five-decade long Boeing era in Nepal – on Friday after its board has approved ‘in principle’ the proposal to retire the age-old American aircraft.
The NAC has formed an expert committee to auction the Boeing. “The auction notice will be issued on Friday,” a source at the Nepal Airlines informed. “It’s a long process,” he said, adding that the NAC will have to give 45 days for potential buyers to submit their bids.
The NAC was planning to auction its last Boeing after the arrival of the Airbus A330s last year but was delayed after the allegations of financial irregularities in the purchase of the wide-body jets.
Nepal Airlines was initially planning to retire its last Boeing 757 after C-check – which will cost Rs 250 million – as it can significantly affect the aircraft’s resale value but changed the idea though the Gandaki was due for a C-check in February-end.
The national flag carrier also plans to auction off the Boeing’s spare parts as it will now have an all-Airbus fleet. The state carrier has set the minimum sale price at $7.8 million for the 31-year-old vintage Boeing ‘Gandaki’ with registration number 9N-ACB and its spare parts.
The narrow body twin-engine jet is valued at $5.4 million out of the total sale price by the NAC, which is technically bankrupt even after buying widebody Airbus. The NAC has not been able to pay its installment of loan to the Employment Provident (Fund) and asking the Finance Ministry to rescue it by paying the installment.
Nepal Airlines Corporation – the then Royal Nepal Airlines Corporation (RNAC) – entered the jet age in 1972 by acquiring a Boeing 727. The first Boeing 757 named Karnali and bearing registration number 9N-ACA, arrived in 1987. Gandaki – the narrow body twin-engine jet – was delivered the following year in 1988. The NAC has already sold its first 757 ‘Karnali’ to BB Airways of Bhaban Bhatta, for $1.46 million in December 2017.
Nepal Airlines has decided to sell off both the 757s as they were no longer profitable to fly due to their high maintenance costs compared to the revenue they bring in.
According to Nepal Airlines, the Boeing 757 burns 4 tonnes of fuel per hour, compared to 2.5 tonnes for the Airbus A320 aircraft. The NAC – in the move to phase out Boeing and adding Airbus fleet – currently possesses two 158-seater A320 jets delivered in 2015, and two 274-seater A330 jets delivered in 2018, in its international fleet.

Nepal Airlines to take delivery of last two expected Y12s

Nepal Airlines is shortly taking delivery of its two final Y12E aircraft after securing qualified flight crews. Nepal Airlines has secured three senior pilots, seven co-pilots and an instructor pilot for the Chinese aircraft. A technical team will shortly be dispatched to China to inspect the aircraft ahead of their arrival in Nepal, according ot the national flag carrier.
The NAC had signed an agreement with AVIC International Leasing in 2013 which saw the Chinese firm donate one MA-60 and one Y12E on condition that the carrier take three more Y12Es and one more MA-60 using a Rs 3.72 billion ($35.4 million) soft loan from China's Exim Bank. Nepal Airlines has slowly taken delivery of the promised aircraft, but has complained of their unsuitability for Himalayan terrain.
This June, Nepal delayed delivery of the two remaining Y12Es as it only had one qualified pilot for the type. Once the aircraft are received, they will be deployed along domestic routes which had previously been suspended due to a lack of aircraft.
"Demand for air seats in the domestic sector has grown several-fold due to the poor state of national highways," Nepal Airlines' managing director Sugat Ratna Kansakar said, adding that keeping the planes parked in China is a bad idea. 

NAC decides to bring remaining Chinese aircraft

The Nepal Airlines Corporation (NAC) has decided to bring the remaining four aircraft from China.
Issuing a statement today, the national flag carrier said that it was bringing the aircraft in two phases. It plans to bring one Modern Ark MA 60 and one Harbin Y-12E, in the first phase, and the remaining two in the second phase. The MA 60 is a 56-seater aircraft, while Y-12E can fly 18 people.
NAC also said that it decided to bring the aircraft because the prices of these aircraft is lower compared to similar aircraft manufactured in European countries.
“The price of MA 60 and Y-12E is lower compared to similar aircraft made in European countries,” the statement said, adding that the Chinese aircraft can operate flights to 20 airports across the country.
The NAC is already flying one MA 60 and one Y-12E it received as grants from the Chinese government. These aircraft, however, have been facing various technical problems.
NAC officials say the Chinese manufacturer has promised to resolve the problems like maintenance, availability of spare parts, cost of training pilot and insurance, among others.
Nepal and China had sign a loan and grants agreement to bring six aircraft – two MA 60s and four Y-12E – on November 13, 2013. As per the agreement, China had arranged soft loan worth Rs 3.72 billion to purchase the aircraft. The interest rate for soft loan has been fixed at 1.5 per cent.
The NAC took delivery of MA 60 in April, 2014, while the Y12-E joined its fleet seven months later. But the aircraft made loss as their operating costs was far higher than what they earned. NAC earned only Rs 141 million from MA 60 in the first year of operation, while its expenditure was Rs 405 million. Similarly, Y-12E earned Rs 12.2 million in the first nine months of its operation, compared to its operating cost of Rs 67.5 million.
NAC is working to increase its domestic fleet to increase its market share which has been dwindling in recent years.

Simrik Air flies 63,000 passengers in a year

Simrik Air flew some 63,000 passengers in the first year of its operation.

The airlines that started with mountain flight a year ago, today, has been flying to Pokhara, Bhairahawa, Simara and Lukla with its two 19-seater Beech craft and two 19-seater Dornier aircraft, according to the airlines.

The airlines has around 85 to 90 per cent occupancy, it said, adding that it is planning to add flight frequency to Lukla from next month, and adding new route on Pokhara-Jomsom and Kathmandu-Tumlingtar soon.