By Sanjaya Neupane
KATHMANDU, Jan 20: The sharp decline in the inflow of foreign visitors into Nepal during last year has hit the airlines industry hard resulting in the lay-offs of upto 25 per sent of the total staff in the domestic airlines.
According to the Airlines Operators’ Association of Nepal (AOAN), many airlines have decided to lay off the staff while some others are forcing their employees take long leaves without allowances or payments. Several private airlines have attempted to minimise their loss by either withdrawing the regular flights or reducing the frequency.
Currently more than four thousand employees are associated with 15 domestic airlines companies. And thier future is now in a limbo, especially because of the 20 per cent decline in tourist arrivals last year, further aggravated by the September 11 terror strikes in the United States.
Several Airlines have already reduced the number of domestic flights since last November. Experts say such reduction have exceeded 40 per cent of the formerly total domestic flights.
Kishor Silwal, Vice President of the AOA, says around 25 percent of the employees of airlines industry has been laid off. Silwal, who is also the Deputy Managing Director of Sangrila Air, informed that the Sangrila Air alone laid off 60 employees recently.
"We are flying our crafts just for existence," says Silwal. "Under the current situation when the airlines are facing huge losses, there is no other way to reduce the costs." However, Silwal assured that the workers would be called back when the situation improves.
And it is not just Sangrila Air that is facing the heat of the current downturn in the tourism industry. "We are asking a group of four employees each week to take leave for two weeks. We will apply the scheme gradually to all the employees," informed Pragyan SJB Rana, Chairman of Mountain Air.
Similarly, Necon Air is preparing to lay-off 69 employees. "The Association has already approved the decision from the Department of Labour," informed a high level source at the Necon Air.
Domestic airlines opeartors are now requesting with the government to increase the domestic fare, claiming that the cost of operation has increased during the last decade. The aviation feul has gone up by 86 per cent and there has been a significant increment in other civil aviation charges. The insurance premium has also increased significantly after the September 11 attack.
"Airline operators are presently losing US $ 200 per flight even while operating at full capacity," said Rana. Previously, the airlines used to recover the losses through mountain flights. But now, with the inflow of tourist on the wane, domestic airlines harldy operate mountain flights.
Published in The Kathnandu Post on January 21, 2003
Link: http://www.nepalnews.com/contents/englishdaily/ktmpost/2002/jan/jan21/economy.htm
