Kathmandu, September 27, 2005

The Royal Nepali Army (RNA) has been unable to insure its aircraft fully because the premium insurance prices have skyrocketed post-9/11 attacks, a military source saidtoday, adding that the risk has increased due to the Maoist insurgency. “The RNA stopped insuring its aircraft from November 8, 2002 as the premium insurance price drastically increased due to the threat posed by terrorism,” a source said. The RNA has to pay anything between Rs 20 and 25 crore annually if it wishes to insure all of its aircraft. According to officials at the National Life and General Insurance Company, the premium insurance price for an aircraft was only about 1.25 to 1.5 per cent of the total cost of an aircraft before the Maoist insurgency escalated. “Now, the companies have to pay about 3.5 per cent of the total cost of an aircraft as premium price, plus 13 per cent VART” said the official. The premium prices have increased due to the risk of terrorism, not due to the possibility of damages to aircraft, he said. As per the non-life insurance policy, the premium paid to insure an aircraft is not refunded if accidents do not occur. The RNA continues to have only “third-party insurance” and “seat coverage” for its aircraft, including an MI-17 helicopter, which crashed recently. “Seat coverage” in MI-17 includes 33 persons, including crew members and passengers.

Government will bail RNAC out, says tourism minister

Kathmandu, September 27, 2005

The Tourism Minister, Buddhi Raj Bajracharya, has said that the government is committed to addressing the problems plaguing the Royal Nepal Airlines Corporation, the national carrier. He also welcomed the first tourist arriving today at the Tribhuvan International Airport, German national George Dauster. Dauster had flown to Kathmandu on a plane belonging to Qatar Airways. Vowing to implement the recommendations made by a committee, which submitted its report to the Tourism Ministry recently, he said: “Henceforth, no committees will be formed to study the situation of the RNAC.” He was speaking at a programme — Celebrating 26th World Tourism Day — organised by the Tourism Ministry and the Nepal Tourism Board today. Pointing out the need to launch promotional campaigns in the international market to promote Nepal as a destination, he said: “On the one hand, we haven’t been able to promote the country in the international market. On the other, terrorist attacks, rallies, and demonstrations have had a negative impact on the image of Nepal.” Bajracharya gave away certificates and plaques to some of the top foreign money earners, including Hotel Yak and Yeti, Malla Hotel, Hotel Summit, Tibet Guest House, and Hotel Garuda, Yeti Travels, Zenith Travels.