KATHMANDU: Nepal Airlines Corporation (NAC) has discontinued the long-standing privilege allowing its officials to upgrade from economy to business class.

The decision was made by newly appointed NAC Executive Chairman Bikram Rai immediately after assuming office on Tuesday.

He instructed the management to end the “business class upgrade” facility, which had been available to certain officials.

Following his directive, Acting Managing Director Janakraj Kalakheti issued a circular to the directors of the Market Management and Passenger Service departments, barring them from using the upgrade privilege.

Previously, these directors had the authority to purchase economy-class tickets and upgrade them to business class, allowing insiders with access to fly in business class at significantly lower prices.

The corporation’s spokesperson, Anil Ghimire, said that the chairman decided to scrap this facility because it was negatively affecting the airline’s revenue.

“Chairman Rai has instructed the immediate discontinuation of business-class upgrades, timely revisions of the baggage policy, and prompt response to passenger complaints regarding damaged baggage,” Ghimire said, adding that the directives have already been implemented.

In addition, Chairman Rai has also directed the management to remove staff appointed on contract and daily-wage terms, many of whom were hired by former Executive Chairman Yubaraj Adhikari during his final days in office.

Rai has further instructed the management to return the leased engine used in the narrow-body aircraft Lumbini to the concerned company and complete the installation of another engine—sent to Israel for maintenance—within 15 days.

NAC had leased the engine from Israel Aerospace Industries Ltd. (IAI) for its Lumbini aircraft. However, after NAC failed to clear payments amounting to around Rs 420 million, the Israeli company terminated the agreement.

Chairman Rai has reportedly drawn management’s attention to resolving this issue as well.