Lufthansa Group has been the cynosure for a few days now, for it has offered to partner with the currently state-run Nepal Airlines Corporation (NAC). On one hand, we have one of the largest carriers in Europe and on the other, there is a sick State Owned Enterprise that has been running on over a billion rupees worth of cumulative loss and if not for the Ground Handling Services (GHS) at Tribhuwan International Airport (TIA), would go on another millions of rupees worth of net loss every year.
This much needed strategic partnership would offer:
- Nepal can be transformed into an aviation hub from the current status of being a mere end-destination. This can increase traffic in the Nepalese skies. This will open up more employment opportunities as well.
- With business-driven partner, NAC will have a commercial orientation and will be directed towards a profit-driven modality.
- Code-sharing, which is a major practice in international aviation, will allow NAC to expand its service. It will one, market the services of NAC and two, generate additional revenue for NAC.
- Consumer benefits will also increase, due to greater network access and other benefits of strategic partnership like seamless travel via code-sharing, transferable priority status and more.
- NAC can acquire modern scientific technological and manual skill sets.
- With business-driven management, strategic partnership will also foster competition in the rural domestic destinations.
Read more of Samriddhi’s Akash Shrestha’s post here!
To learn more about the costs and benefits of reforming NAC through strategic partnership, click here!