Kathmandu: The Nepal Airlines Corporation (NAC) Reforms Recommendation Committee, led by former Governor of Nepal Rastra Bank, Dipendra Bahadur Chhetri, has recommended additional capital investment to enhance the competitiveness of the national flag carrier.

Submitting the report to Minister for Culture, Tourism, and Civil Aviation Sudan Kirati, the committee emphasized the need for increased capital infusion to elevate NAC's standing in the aviation sector. The five-member committee, consisting of CA Piyus Anand, Captain Om Gurung, Tikaram Rai, and Sahara Neupane, highlighted the importance of additional capital to help NAC stay competitive, considering the practice of governments globally supporting international airline companies during special circumstances.

The current financial status of NAC is concerning, with a negative net worth of Rs 4.9 billion until the fiscal year 2078/079 BS. The total loan burden on NAC stands at Rs 48.3 billion. The committee's report suggests that NAC explore avenues for obtaining concessional loans and expand its business to mitigate the loan burden.

Additionally, the committee proposed changes in the leadership structure, recommending that the Chief Executive of NAC be appointed through an open competition conducted by a committee led by the Vice-Chairman of the National Planning Commission. The report also suggests adopting a management contract to modernize the management system.

Furthermore, the committee recommends exploring the possibility of transforming NAC into a company model by inviting a strategic partner. These recommendations aim to address the financial challenges and operational improvements needed for the sustainable growth of Nepal Airlines Corporation.