Kathmandu. Buddha Air, one of the leading private carriers of Nepal, has proposed to buy 5 percent stake in the national flag carrier Nepal Airlines Corporation (NAC).
Executive Chairman of Buddha Air, Birendra Bahadur Basnet, submitted the proposal to the Ministry of Culture, Tourism and Civil Aviation on Monday. He also suggested that the government should maintain 51 percent stake in Nepal Airlines, sell 20 percent to four strategic organizations including Buddha Air and sell 29 percent share to the general public.
Basnet has also suggested that the government will increase its stake in Nepal Airlines to 25 percent and the remaining 26 percent will be issued to the general public.
On the occasion, Basnet urged the ministry to sell shares at the rate of 5 percent each to four companies with a turnover of more than Rs 10 billion and which have received ‘A’ rating in the credit rating done by ICRA. Basnet also suggested selling 29 per cent shares to the general public to ensure greater national ownership and transparency.
TAG_OPEN_strong_17 Here are the reasons why Buddha Air is trying to buy 5% shares
- Experience of operating commercial airlines in a profitable manner for nearly three decades, starting from scratch and within the ambit of state rules and regulations (by the book).
- Ensuring that the existing destiny management partner of Nepal Airlines Corporation spending excessive resources but incurring losses will be eliminated from day one.
- Investment protection of all Nepalese ordinary shareholders and investors.
- Fleet Expansion Capacity: Since the government is not in a position to provide investment or full guarantee to increase the number of aircraft, the PPP model will provide the necessary flexibility for tourism investment and growth. The aircraft will be brought through project financing on the basis of commercial capacity.
Ability to provide professional guidance in managerial decisions related to central management selection, fleet selection, business planning÷ist planning and technical operations, and re-evaluation and initial evaluation of Nepal Airlines Corporation.TAG_OPEN_li_21
The Ministry had sought suggestions for the improvement of Nepal Airlines Corporation (NAC) on April 2.
