NAC has flight capacity of 20 hours a day, but it is flying barely eight hours
Summary
Nepal Airlines Corporation's wide-body Airbus A330 aircraft operate only about 40% of their daily flight capacity, leading to significant revenue losses and financial difficulties. Despite approval for increased flight hours and routes, lack of new destinations and underutilization persist, affecting loan repayments.
Key Points
- Nepal Airlines Corporation operates its Airbus A330 wide-body aircraft for only about eight hours daily, far below the 20-hour capacity.
- Lack of new destination routes, especially to South Korea, limits aircraft utilization and revenue potential.
- NAC's inability to meet flight operation targets has led to financial troubles, including inability to repay loans for aircraft purchases.
- Private and foreign airlines benefit from NAC's underutilization, operating more flights and capturing market share.
