Madhab Raj Ghimire*
Recent figure shows that Nepal Airlines come into third position to feed in passengers after Qatar and Jet Airlines. Our national flag bearer is not even able to make major market share holders within domestic aviation. The reason is being battle field of different interest holders; politician, bureaucrats or unions.
I neither want to go the CAAN, NAC side nor TIA side on these detail prospectuses. We are witness that East Asian colleague, Thai Airlines reached one of world’s top airlines and which is occupying remarkable numbers of aircrafts. In an opposite, we have NAC which is still struggling to buy two air craft’s last two years. While different stake holders’ wriggling within themselves, slowly, our air transport market share to foreign land is fading away.
Suspicion aroused while NAC sent money in an advance by violating public procurement act in haste manner to buy aircrafts. Anti- corruption voices came up to confront the decision. Due to, intervention of CIAA and Public Account Committee delayed of buying two aircraft and resulted more money exit beyond country through foreign airlines companies. Therefore, CIAA could have done to allow certain conditions to NAC to perform job for once and put restriction for future. That could have been win-win situation to all. Same rule applied last time by NRB CEO’s salary issues. In this case, CEO’S salary issue handled very refined manner. In fact this step has shown maturity of leadership of NRB.
NAC entire things are happening because of lack of effective regulatory regime in the air transport sector. In transport, airlines industry can adopt full competition in market. Here, our regulatory authority is not well enough to understand these factors to bring transparency into our air transport supposed to play for the market or regulatory efficiency, but it’s not happening.
As I mentioned above, we have regulator body for Air Transport, we have seen that CAAN doing nothing to improve ground handling which is frustrating to the international to national companies too. On the other hand, recent price setting with different airlines is working against norms of competition law. This might be collusive price fixing by the companies could be under anti- competitive practice. We learnt that the regulatory body, CIAA which is supposed to regulate pricing issues remained silent. This setting price could be considered as fair into competitive market if this price has formal authorization from regulatory body. Now, there are huge debates on so-called agent’s commission but no one pays the attention while national carrier could not able to cover prospective market.
These are problems so far for our air industry. Thus, we cannot just escape from the problem blaming others. First we need to make efficient CAAN on implementation all the decision on Air Industry. Second, NAC cannot survive constant political or unions destabilizing behaviors. It needs to be discouraged. Third, CAAN should award ground handing on the basis of free competition procurement procedure by breaking market share. Fourth, to develop cost effective price, different hubs need to verify including with geographical oddness of Jumla and etc. to reduced price to the regional air transport. Fifth, ticket bookings on early (advance) or late need to be based on business promotion which can be exempted but it should not be directed against competitors to wipe out from the market. Sixth, to bring healthy competition, there need to be introduce SGEI considering our geographical difficulties. Seventh, agent’s commission needs to be more transparent to combat variable price to the consumers. Finally, we have concern of security, International Civil Association Organization safety concern need to be address as per international standard.
Infrastructure Legal/Regulatory Consultant */ mrghimire@hotmail.com
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