Nepal Airlines Faces Severe Crisis Amidst Leadership Vacuum and Ministry Indifference

Kathmandu. The national flag carrier Nepal Airlines Corporation (Nepal Airlines) is currently going through the most serious crisis in its history. Stakeholders have been emphasizing the need for strong leadership and a clear action plan to revive the institution commercially.

However, stakeholders say that the Ministry of Culture, Tourism and Civil Aviation is not paying enough attention to this, posing a risk of creating a bigger crisis.

The Supreme Court had issued a mandamus order to the government in the last week of Jestha, ordering it not to 'pick and choose' in the appointment of Nepal Airlines Corporation's board of directors and to base appointments on merit. However, that jolt from the court does not seem to have awakened the Ministry of Tourism. Instead, the ministry is accused of being engaged in a new ploy to recruit its own people, disregarding the merit order in the old style.

• Sowing the Seeds of Controversy

Applications were invited for the post of Nepal Airlines Corporation's Board of Directors member through the Gorkhapatra on Jestha 12, 2083 BS. 27 people had applied for the open competition. The selection committee formed by the ministry had determined the marks based on educational qualification, experience, business plan, and presentation.

In this, 4 marks were allocated for educational qualification, 4 for experience, 15 for the action plan, 15 for presentation, and 10 for the interview.

In this process, Upendra Bahadur Karki came first in the merit order with 36.625 marks. However, the concerned minister Khadak Raj Poudel (Ganesh) disregarded the merit list and decided to appoint individuals with fewer marks, sidelining Karki, who was number one. Karki had gone to court, stating that this decision was against the spirit of the Good Governance (Management and Operation) Act, 2064 BS.

Subsequently, the bench of Supreme Court Justices Tekprasad Dhungana and Shanti Singh Thapa overturned the government's decision, ruling that it was flawed to select junior individuals without basis, without appointing those who received the highest marks. The court had stated: 'No one can be sidelined without basis and reason.' Accordingly, Karki and two other board members, who could not be appointed earlier, were appointed later.

• Ministry Awakened

Following the court's order, Upendra Karki and Bhim Chand have returned to the board of directors. Now, based on the minister's commitment and the open competition, the corporation's officials say that the executive chairman and vice-chairman should be selected from among those appointed as directors. However, a ministry official said that the ministry is preparing to proceed in the old style. According to that official, preparations are in the final stages to appoint Maheshwarbhakta Shrestha, who was third in the merit order, as the executive chairman, and Dr. Deepak Prasad Bastola, who was fourth, as the vice-chairman.

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Maheshwarbhakta Shrestha is a former employee of the corporation, who retired in 2049 BS. That official stated that the preparation to hand over the executive command of the corporation to him raises serious questions about the ministry's intentions. Karki and other board members in competition for this preparation are also dissatisfied. According to sources, the ministry is preparing to get a decision made by the Council of Ministers within a few days. However, Karki and other contenders have already stated that they will go to court again if such a decision is made.

This appointment preparation within the corporation is not just a struggle for positions but is also accused of being linked to significant financial interests and the manipulation of external syndicates. The syndicate is reportedly trying to establish leadership favorable to their interests by influencing some employees in the Prime Minister's Office. 'This is a big game to sink RNAC (Corporation) and fulfill the interests of external powers,' said an official of the corporation.

He insists that bringing individuals who are weak or close to interest groups to leadership, while sidelining qualified individuals, will further tarnish the institution's reputation. Officials from the ministry did not want to comment officially on this matter. When Ratopati contacted Minister Poudel and ministry secretaries for further clarification, they were unavailable.

• Struggling Corporation and Leadership Indifference

Nepal Airlines is currently in a very weak technical and financial condition. One aircraft has been sent to Italy for 'C-check', while four others require engine overhaul (maintenance). With major festivals like Dashain approaching, the aircraft are on the verge of being grounded. Despite calling for tenders twice for engine maintenance, no international company has submitted a bid. The main reason for this is said to be the leadership instability within the corporation and the opaque working style of the ministry.

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Foreign companies have stopped participating in tenders, expressing distrust in Nepal's government processes and the frequently changing leadership. Corporation officials say that in this time of crisis, the corporation needs a capable and experienced executive chief. However, the ministry's working style is keeping the institution in a state of indecision.

Prime Minister Balen Shah is also aware of this matter. A complaint reached him during the dispute over the appointment of board of directors members. The complaint registered at the Prime Minister's Office demanded the public disclosure of open competition marks and the halting of appointments made contrary to the spirit of good governance.