| Username |
Post |
| Shiva Shiva!! |
Posted
on 01-Dec-02 10:08 PM
RNAC is on sale. The total worth of RNAC is Rs 10 billion and is on sale for Rs 1.5 billion. Is it good to sale RNAC, the only flag carrier of Nepal?
For more details, please visit www.kantipuronline.com
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| Arnico |
Posted
on 02-Dec-02 12:38 AM
The assets are worth Rs. 10 billion re. But what are the total liabilities of the corporation? How much does it owe Nepal Oil Corporation, banks, aircraft maintenance companies, and companies from which it leased aircraft in the past?
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| gbncorg |
Posted
on 02-Dec-02 08:55 AM
Folks,
It seems good for all the corrupted Ministers and GMs, if Minister for Culture, Tourism and Civil Aviation Kuber Sharma sells RNAC because they get relief. When private sector holds the RNAC, there will not be any investigation of corruption.
Sharma, you are the damn Minister, who does not have courage to track corrupts down. Shame on you Sharma.
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| dirk |
Posted
on 02-Dec-02 09:40 AM
I think it's high time to privatize RNAC for the airline seems to have gone from bad to worse in the last 10 years or so. It is overstaffed and grossly mismanaged as it is. BUt, privatization should not affect various subsidized flights to remote airstrips where flights are crucial as a mode of transportation and commerce. e.g. Taplejung, Jumla, Bajura, Simikot, Bhajang, Dolpo, Lukla, Phaplu...etc.
It's a shame to see where Thai Airways is and where RNAC is. They were both started, I believe, in the same year, 1969.
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| protean |
Posted
on 02-Dec-02 02:07 PM
I think it is at a stage when it could go bankrupt. Its liabilities are very high.
The revenue seems to be always offest by all the impending lawsuits,, malfeasance, and above all lack of accountability. The failed attempts to impart a corporate atmosphere and discipline has always made this corporation operate at the behest of the vested group. The airlines should have been put for bid at least 5-6years ago, so that it could have balanced its debt with additonal equity. This would probably also have resulted in a more effective operation of the carrier.
We need more transparency in the modus operandi of all our institutions, and hopefully this might be a stride in that direction (although a bit late).
I wish more details of the corporate finances were spelt in this message by Mr Sharma.
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| Vision |
Posted
on 02-Dec-02 04:47 PM
RNAC has been the only success story of our past government. It remained one of the most preferred and safest airlines for many visiting this picturesque country. Not to mention the significant revenue it was generating. The fall of RNAC signifies how corrupt and selfish the government of the past 12 years have been. Perhaps, the only way to salavge is to sell it before it completely diminishes. And let's hope the new owners will take the 'flag carrier' to its' glory days. Good move!
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| chipledhunga |
Posted
on 02-Dec-02 05:30 PM
This is a very tough question. Certainly mismanagement, political interference, and corruption has driven our airline to the verge of bankcruptcy. Now at this point: Should we have a national flag career or not if it is making loss? Should we forget about the social obligations and stop flying to places like Rumjatar, Jumla, and Bajhang and be profitable flying on trunk routes such as Kathmandu to Biratnagar, Pokhara, Bhairahawa etc? Also the sale price offered is negligible compared to its assests? How much liablity does RNAC have? Commission ko kasle kati kati khadai chan? Also who is reponsible for the debts? There was a time when it had a healthy fleet of about 20 aircraft just a decade ago. Now only about 5 or 6 of them are operational. Let's just hope our national flag careers survives without being on the hands of the corrupt vultures, yet without forgetting the remote airstrips Taplejung to Darchula.
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| Bal Matlab |
Posted
on 02-Dec-02 06:08 PM
Namaskar hai friends,
New to this board, just thought of dropping some comments. I think the RNAC will get better if privatized rather than being with the government. If not privatized it might just be like the Trolley buses, which ended up closing at last.
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| protean |
Posted
on 02-Dec-02 07:54 PM
First of all, the condition of sale ,should be that the state owns part of the corporation's share, so that some of the flights to remote parts could still be continued.
But, aren't the airlines that are running today, operating in some of these areas, or only in the touristically popular destinations?
Couldn't the shares be floated in the market?
How are the private airlines faring currently? Last time I was in Nepal, I noticed that some of these were not generating sufficient profits, as they had been during their initial launch.
I think, there has to be a smooth handoff. Although, RNAC was beleagured by malfeasance and lack of accountability in recent years, some of its engineers, pilots, and staff, are sound and talented. That can't be forgotten.
The airline has been bringing in revenue, but also suffered losses, due to lack of planning,and serious involvement of vested groups in deals (case in point: Lauda Air Story). I don't think, the current staff can just be dimissed and an entirely new team brought in. The management could be a new one that performs and is accountable.
Therefore, I see a need for proper handoff, and the state having a stake at the corporation. I do see a combination of the current staff, and a new and sharp managament team, to be more beneficial to the airline.
Above all, transparency becomes imperative.
Let's see how this pans out.
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| Biswo |
Posted
on 02-Dec-02 09:31 PM
No doubt RNAC needs to be sold. Only fear is we may end up like in post-Communist Russia of earlier 1990s, where some rich people (oligarch) bought state owned factories in the cheaper than black-friday price, and got rich overnight.
Make everything transparent and sell the damn white elephant.
[ Rumour is that Mr Kuber Sharma himself has that much money (of course, I don't believe that).]
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| czar |
Posted
on 02-Dec-02 09:57 PM
Royal Nepal Airlines started its operations in July of 1958 or thereabouts with two Mc Donnel Douglas DC -3's. Same 'gooney birds' that swarmed over the skies of wartime Europe in the 1940's.
The fledgling airline, Shahi Nepal Bayoo Sewaa, operated from a 'gaucharan' off to the east of the bagmati and west of the manahara river. In Patna, a steam roller was disassembled and flown into smooth the bumps of the cow pastures, from which reluctant cows had to be shooed off.
Many years later, it was a chilly and bright 1972 afternoon as the first Boing 727, call sign 9N-ABD, landed in Kathmandu. The era of jet travel for RA had begun in Nepal.
Since the late 70's, its been a steady downhill with each successive government using RNAC as a cash cow to be bled mercilessly. And a suitable place to park neer do well kith an kin for every bum who sat in any chair of note in the country. The airline began to swell faster than a compromised virgin. That was the beginning of the end.
I am no fan of SOE's, but the national flag carrier is no smoke stack industry to be consigned to the heap of history with such an ill concieved plan. I am well aware all the clever economic arguments that can and will be put forth to support the move.
I am all for it. With one caveat: Plan the bloody thing out to the last detail ! All this haste seems to reek of financial skullduggery and all manner of mischief. I know RA well, and I mean well. I don't sound like a trusting soul? Pardon me, but I am a tad suspicious of all the same ole crooks getting up to the same ole tricks. Leapords and their spots and all that sort of thing, you know ?
The one sticking point that hardly seems to have registered is this: bi-lateral air agreements. These agreements are signed between Goverments, allowing each other's arilines access to desitinations and the number of flights that can be operated.
Other than the US, and a few low cost carriers coming up in the EU, EVERY airline is either state owned or the state has a sizeable stake in them. For all intents and pursposes, the bilateral air agreements are binding for State owned airlines. NOT private carriers. Until this is clarified, RA as a private entity flies straight into turbulence that may well cause it to crash and burn.
The moment RA heads to private hands, NO Destination it flies to has any reason to let it LAND ! Why would any foreign government allow RA any preference as opposed to, say Necon, which is also just another private air carrier ?
In the short time that the right honourable minsiter has warmed the seat of the Ministry of Tourism, I doubt his team has had the time to think this through completely.
Of all the cockamanie, dumb assed things this transitional government team has and will do, for now, this about takes the cake. Those jokers seem to have outdone even themselves with this ill considered move to do a fire sale of RA.
The more's the pity that all those fine, capable and harworking souls who kept the carrier afloat all these years are to be brushed aside and given no say in things. Even now.
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| Biswo |
Posted
on 03-Dec-02 12:04 AM
>In the short time that the right honourable minsiter
> has warmed the seat of the Ministry of Tourism, I
>doubt his team has had the time to think this through
>completely.
Czarji,
Interesting perspectives.
One more news in today's Kantipur basically says Kuber Sharma didn't mean it. Well, he probably said it in 'hachuwaa', according to some businessmen.
Kuber Sharma, it seems, not only said in Hachuwaa that the government's gonna sell the RNAC, but he also said in hachuwaa how much it would cost.
Will these freaks , handpicked by a capricious ruler in Narayanhiti, be less whimsical and tell us what the hell is the government's policy? Home minister says one thing, and retracts, probably Kuber is gonna retract soon, no one take Mandalji seriously otherwise his speeches are also troublesome, those ministers who said 'prices wouldn't increase' the day before the increase of petrolium prices, someone was saying something about the proposal by Maoists etc. etc., and I am pretty sure this council of ministers will be known more for prevarication by the ministers than anything else when it will disgracefully leave the Singha Darbaar.
Some one rightly said, Andher Nagari Chaupat Raajaa.
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| LamjungKunchha |
Posted
on 03-Dec-02 12:36 PM
I am trying to analyze what in the World King G is thinking when he makes these stupidly succidal decision. Here are the lists:
1. Throws pulbicly elected PM and calls him inept. Takes the executive power and promises he would consult with Political Parties to form the next government. He snubs the political parties and leaves for Gurkha for Dashain leaving behind the political mess and unstability he created.
2. Comes back and meets with Political parites and next day anounces his cabinets and still resumes his executive power himself. The members of the cabinets are professionals and non of them were endorsed by political parties. Supposedly clean cabinets includes either political novices or formerly tainted faces.
3. The newly inducted ministers start making irresponsible comments. They make comments one day and retract another day as if they are still talking in a tea house and nobody is listening. This can be attributed to their failure to understand the new responsibility.
4. He meets with Policial Parties again and next day he enlarges his cabinets with the controversial people. Most of them were cast aways in the political organizations as a slap to the poitical parties. Most of them immidiately follow their predecesor and start to play the game of making and retracting comments.
5. Then comes the mother of all stupidities. He takes back the power to decide its own expenditure. Why in the world the king would do something like this in a sensitive time like this. Still baffles me.
My few predictions:
King will continue to make these stupid mistakes, which will force the political parties specially NC to go for republic. UML will become obsolete since they don't seem to find any agenda and are completely lost. The major force of the leftist is their capacity to mobilize their ground level workers. But somehow UML have lost that golden touch. But if they can find a powerful (not powerful to get the power rather one impressive one) agenda to motivate their cadres, their future can be different.
One year from now, Maoist will be more powerful than now. King will still be in power but will rule capitals and headquarters. NC will be in the street opposing King. Deuba will continue to be obscure political figure since most of his cronies are sacrificed to divert the political wrath resulted from the King's mis(guided)steps. UML's status will depend if they can find an agenda. We will be in worse quagmire. Just my Opinion. Feel free to disagree.
LK
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| Biswo |
Posted
on 03-Dec-02 09:39 PM
Though we never had any doubt about its coming sooner or later!
(From today's nepalnews.com)
---
Tourism Minister denies RNAC news
A day after the press carried the news about the announcement by the Tourism Minister to sell the Royal Nepal Airlines (RNAC) for 1.5 billion rupees, the Ministry issued a press statement saying the Minister had only implied that he would give out the management of RNAC in contract and did not intend to sell it altogether.
"The Minister had said that he was willing to give the management of RNAC in contract," a press statement said.
When giving out the management on contract, not even a single worker will be relieved of duty and none of the assets will be sold, the Ministry has stated. It has also requested the people not to believe on such misleading news.
The Ministers in the Chand government have been repeatedly refuting the news carried by the press. nepalnews.com am Dec 4
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| Jhilke Kyailan |
Posted
on 04-Dec-02 09:42 AM
Can anyone hazard a guess as to how much debt RNAC is carrying?????
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| khaja biscuit |
Posted
on 04-Dec-02 10:15 AM
R.N.A.C is in deep shit. The sons and the daughers of most of those who work(ed) at R.N.A.C are in America, Canada, Australia and England. Co-incidence? Something to think about.
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| DWI |
Posted
on 04-Dec-02 11:10 AM
RNAC should be sold on Ebay.
Just kidding. Privatization of RNAC would be better than the way it is right now. However,the best solution would have been to involve the citizens with public investment in the corporation.
Whenever these short term ministers talk about privatization, it is clear that they are more interested in procuring the fruit that comes with it (secret commission, bribes etc) than improving the situation. Thus to clearify this doubt or for the better solution RNAC should be publicly traded company. I am not an economist, so there might be some economical issues, any comments on the financial side of it from economist gurus?
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| protean |
Posted
on 04-Dec-02 04:14 PM
Biswoji,
This was expected. What are these people, some imps who send messages at the behest of the "His Majesty''?
What are they thinking?
Is such mendacity to be tolerated or expected?
With such moves, they're losing their credibility everyday. Even
what gets told in the news could from the GOVT's end could be pure propaganda.
Where is the due diligence so required in such proclamation?
After having dismissed an elected government, these folks are displaying more signs of ineptitude and gross negligence. This does not bode to well for us, and such unplanned and not so well thought statements and similar course of actions could be deleterious to the public.
Such prevarication [on the current King's and his chosen ones'] has already got the citizens thinking of what might befall on them.
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| protean |
Posted
on 04-Dec-02 04:15 PM
[on the] =[on the part of]
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| Nepali Kanchi |
Posted
on 04-Dec-02 04:36 PM
Ten billion rupees bhanya 125 million dollar , hoina? Tetro negative profit bhayeko company ko , kasari 125 million dollar worth ni?
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| Nepali Kanchi |
Posted
on 04-Dec-02 04:38 PM
Feri why are they selling for 15 million dollar?
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| protean |
Posted
on 04-Dec-02 04:50 PM
DWI,
I am not sure what the implications of these minsitry's statements are ,but what I do seem to know is that they are lacking proper information and real analysis in what they're stating(as explained up above).
Sale of RNAC would be good, but I think the debts of this airlines are very high. I suppose Mr. Sharma might have found out what its debts and other charges (including lawsuit settlements and all other hidden costs) are too high. That could be an explanation as to why Mr. Sharma has decided to retract his statement made earlier.
The revenues of RNAC are high (can't quote exact figures), and I would like to term it as NAC (instead of the R upo front). Their phyiscal assets are the buildings, and all the planes the corporation owns and probably some others (would need to find out details from its balance sheet or income statement). But, I don't know what the current book value of these assest are (if they're to be sold today). That probably got these folks perplexed in the first place.
Besides, the skilled staff and pilots do make up a substantial portion of intangible assets and are one of primary reason that the Corp. is operating [quite well] till now despite parasticial attacks on it by the vested interest groups. As a result of its politicalization, it has not emerged as a true success story.
One thing privatization could do would be to increase its profits and enable a smooth operation. But, this has to be conducted in a smooth handover ,which is a tough call. There are some sharp management experts who could be brought into action to enable this transition.
Another thing that is called for is transparency of its financial reports that could happen if the private airline is pushed to do so.
If there were some private investments to come in, and start operating it, then it could possibly be floated publilcy, and shares be traded.
I see both the private and state to have stakes in its share so that tax evasion and all that doesn't become a norm.
Having said that, for someone to take ownership of such a heavily debted airline is quite a big risk. And for someone to buy shares in such a corp. will be definitely risky ,too as it could easily go bankrupt.
A more attainable solution for the interim period might be to bring in private investments, bring in better management, get more trasparency. Having established credibility, then it might be in a much better position to attract potential buyers, or be traded publicly.
Right now , it is in some sort of legal, political, and finacial quagmire that are all correlated. Will definitely need some smart and dedicated people to clear up this mess.
And above all we need a more credible government that delivers (rather than one that makes blunt statements) and that does not allow vested interest groups to swarm this institution.
Is this possible?
I wonder (but hope so)!
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| Jayahos |
Posted
on 04-Dec-02 05:35 PM
Should we privatize RNAC?
Some facts:
1. ADB asked and we lifted the food depots in remote areas. Consequences: Happy ADB, But Food shortage, starvation and alike!
2. We have Standard and Chartered, NABIL and Other banks with a large chunk of business in their POLTO, and none of them have a branch outside major industrial cities. RB lays binding provision that they should operate in remote areas or else pay a fine of 25 LAKH(?). They choose the later one. And Nepal Bank and Banijya Bank, both of them are in loss, are working in the remote areas despite of all difficulties.
3. There are more than 3 or 4 DAIRY FORMS and people still donot believe their products and go for DUGDHA BIKAS SANSTHAN or none!
4. NECON AIR and many other airlines are on damn profit and none of them fly to HUMLA. RNAC does that.
5. Our development level is not at par of AMERICA and most of our economists think PRIVATIZATION is the only way out where PEOPLE IN NEPAL VOTE FOR COMMUNITST AND SAMAJWAD KO NARA OF NEPALI CONGRESS.
Consequences: More war!!
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| DWI |
Posted
on 04-Dec-02 06:00 PM
No matter how much in a debt RNAC is, it always would be a profitable composition in a long run to own a stake at nation's only (or dominating) international airline system.
I strongly agree with you Protean and even though seem impossible,I hope that the handover process won't benefit the corrupt officials and deep pocketed criminals only.
As you pointed out, Protean, I bet the financial statement and balance sheet are worse than Enron's some deliberate, other ignorance.
By the way what would the name be if RNAC is privatized? Will the 'Royal' word fade away?
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| Biswo |
Posted
on 04-Dec-02 08:45 PM
Proteanji,
Agree with your comments. Equally worth pondering are your comments about RNAC. The current condition of disrepair is mainly because of accounting mismanagement, no doubt.
I don't know in detail about the flight provision to remote areas like Jayahosji, but I don't really share his sentiment about subsidy 'posts'. First of all, food shortages were due to a lot of other reasons. There are food shortages in Nepal even now, there were food shortages before too. As long as we ship rice paying Rs 35/Kg as a transportation cost from Nepalgunj to Jumla and sell that to the local people in subsidized price(a couple of kg per month per person, am I right?), there will be food shortage. We have to make roads, and provide opportunity for them to trade their goods.No one lifted people out of poverty by spoonfeeding them.
As for subsidized plane yaatra, I have contention too. Do the local people really get to ride those plane when they need? Most of those plane rides have been free rides for some influential persons. Corruption done by ticket counter officers in selling those tickets are proverbial. It has been years,even decades since we are providing such rides, have we got any result? We are making 'bum and beggar' districts there.
Let's get real. RNAC needs to be sold, at a reasonable price with transparent procedure.Tax payers shouldn't be paying for the businesses. And for your information, after selling RNAC, the government will continue to earn tax money from the profit of the airlines, if it turns profitable. A big private businesshouse can always stimulate national economy.
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| Jayahos |
Posted
on 05-Dec-02 07:27 AM
BISWO ji,
1. No need to disagree with your points! Okay, I get real…let’s sell RNAC.
DUI CHAR BARSA BIDESHA BASU, PAISO KAMAU ANI RNAC KINNA JAUN BHANYA....DIYA HOINAN INI KUBERA JI LE :)
2. Then, why do I have that 'sentiment'?
For just and equitable share of fruit of development, taxpayers should not have naysay if a fair amount of their money is funneled to promote living standard of poor. This is the reason why I supported subsidization for remote areas - where no other alternate means of transportation are available - in the cost of a little higher charge from flights of commercially viable and profitable routes. Despite of mismanagement, over-staffing, nepotism and many others (anything you mention against government management, it is there in RNAC), RNAC is the only link (although it is limited!) to some of the areas. I am afraid, if we hasten to give it to private companies, that the people of some of the districts will never get GORKHAPATRA. :)
>>We have to make roads, and provide opportunity for them to trade their goods.
So, shall we wait for sometime so that other alternates are available and in the meantime improve performance of RNAC?
3. Although this response is unnecessarily getting long, let me elaborate 'OOHI' food depot issue.
In July 1995, the Government approved long-term Agriculture Perspective Plan (APP), prepared under a previous ADB technical assistance grant. The APP even boasted that by the year 2000, Nepal would experience the same growth enjoyed by Southeast Asian countries. The APP suggested that by the year 2000, HAMI TA DHANI BHAI SAKEKA HUNECHHAU so NO NEED FOR FOOD DEPOT. In the year 2000, even without assessment of the ground situation (Biswoji, Here I agree with your point that food shortage is consequence of other factors too.) they closed the depot and everybody knows the consequences!
4. I think, only after upgrading the situation of some awkwardly poor and remote areas, we should consider about lifting subsidies in the matters of basic needs. Our development model should be based upon our own experiences and ground realities!
JAYA HOS.
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