Speaking at the meeting on Tuesday, Minister of Tourism and Civil Aviation Lokendra Bista said he along with his team is determined to procure eight Chinese aircraft in responsible and transparent manner. [break]
MoTCA has signed an agreement with China-based AVIC International to purchase five 19-seater Y-12 and three 56-seater MA 60 aircraft. Minister Bista said the government is preparing to procure five aircraft in soft loan and three on grant. “EXIM Bank is studying the proposal and is positive to grant a loan,” he added.
Deputy General Manager of NAC Ganesh Thakur said the airline is facing a loss of 50 percent in operating cost in domestic sector as there is no government subsidy for operating to rural areas.
IRHC on Tuesday had summoned minister Bista, secretary of MoTCA Dr. Ganesh Raj Joshi, officials of Civil Aviation Authority of Nepal (CAAN) and NAC to enquire about procurement of Chinese aircraft and the condition of Tribhuvan International Airport (TIA).
The meeting also directed the ministry to work for making Tribhuvan International Airport (TIA) safe, secured and organized. MoTCA has been directed to closely monitor the security of private airlines operating in domestic sector as well.
President of the committee Padam Lal Bishowkarma said Fifth Freedom Right should be implemented making sure it causes no harm to NAC.
The right of Fifth Freedom allows an airline to carry passengers from its country to another country through a third country. Air Arabia was preparing to operate flight under Fifth Freedom about a year ago, which however couldn´t after the protest of NAC employees.
NAC auctions grounded Chinese aircraft to cut losses