Nepal Airlines Corporation doomed to closure?

Kathmandu: National flag carrier Nepal Airlines Corporation (NAC) last week pulled out of its flights to New Delhi, one of its most lucrative sectors until a few years back.
Stoppage of the flights was due to low volume of passengers, said Nageshwor Raya, corporate director of NAC. Oh really? Juxtapose his comments with this fact: Jet Airways recently increased its flights to 12 from seven per week.
What does this mean?
At first glance, the move by the troubled carrier may seem but temporary corporate strategy. But things are really looking ominous for this laggard national flag carrier. It may already be facing the beginning of the end.
The corporation was performing satisfactorily in the international sector due to the absence of competition on many lucrative routes and a comparative advantage as a domestic-based airline despite mismanagement and poor services. But no longer.
Today's fierce competition in the national and international sectors seems to have broken NAC's backbone - perhaps once and for all.
11/02/08 Krishna Regmi/Kantipur Online, Nepal

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Categories: Foreign Feb 2008, Jet Airways Feb 2008