Singapore Airlines, one of the world's most successful international carriers, was also one of the earliest airlines to begin flights to Nepal in the mid-eighties. Nepali Times spoke with Lawrence Liew, general manager of Singapore Airlines in Kathmandu.

How was business last year?
Last year was very challenging, particularly after 11 September. In Nepal it was the royal massacre of 1 June that sent a message that things are not running well here. That kept many tourists away. Look at newspapers, arrivals are still dropping.

Do you see signs of a recovery in travel?
There are signs of a recovery, but elsewhere. For instance we had the National Air Travel Agents Fair of Singapore to sell special packages, particularly to the US, and passengers are now travelling to the USA again. We've resumed flights, where there were five daily services to Los Angeles, we're at two. Flights to New York had been cut down from five each week, but are now going back to original levels. There are signs that travel is recovering.

What about Nepal, are tourists coming?
We have small indications here and there. Good Friday was good, people came from Singapore for the long weekend. We were overbooked from Singapore, it was a refreshing change. I just hope nothing else happens here.

How is the competition after Royal Nepal has discontinued competition, how has Thai been?
Thai has always been a strong competitor. We also have Qatar, Transavia, Gulf Air.

Does Singapore Airlines promote Nepal, how?
If you recall, about a year-and-a-half ago we did a USA-Nepal tour where we flew travel trade industry people to nine US cities. We did that twice to make sure the Americans were coming. If nothing else, with such trips we can assuage their concerns or fears about coming to Nepal. It is good to tell people there about the situation first hand and invite them to visit. You have to have a presence in markets, otherwise it is easy for people with money to go elsewhere. We are doing other things. For example, during the jazz festival, we brought over Don Borrows, and bands from other places too. These things are needed to pacify people, make them think Kathmandu is quite safe. We hope the word gets around. We distributed close to over 100 posters on the festival in the US, Australia, Japan, Korea, Taiwan. almost all over the world.

You seem to be doing what Royal Nepal should be.
Given their constraints, it is quite difficult for them. They have been closing their stations one by one. Somebody has to fill their shoes, do their bit for the sake of tourism.

What can Royal Nepal learn from Singapore Airlines?
If I were at Royal Nepal I would concentrate only on routes that are making money. It is time to put aside your national pride and focus on the business. Let's make the profitable routes work first and then as you get more confidence and revenue, you can expand to other routes. Some destinations that Royal Nepal flies to are a little suspicious, why would anybody want to fly to stations that are like white elephants. Last year we cut off two stations because they were not making money. It has to be run like a business.

How has the in-bound traffic of Nepalis to Singapore been? Why should Nepalis go there?
Singapore is a very convenient place for Nepalis. You don't need visas, everybody in Singapore speaks English. All you need to go there is a return ticket and you can spend a few days there. There is a fairly large Nepali community there. Singapore is safe, almost crime free.

Do you also have a new package?
The package is for all travellers visiting Singapore. We realise tourism is our major revenue earner, like for Nepal. Hence the package, which gives you a night in Singapore for $32. It is an extremely good deal, but you need a ticket from Singapore Airlines. That is part of the deal because it is subsidised by the airline, the Singapore Tourism Board and the concerned hotels.

You used to fly Airbus 340s to Kathmandu on occasion, now you're back to A310s. Do you plan to increase frequency or go back to A340s?
We intend to increase frequency, we've been doing that in the winter, when demand outstrips supply. That's when we bring in A340s. Lately we've stopped, because the bigger aircraft are required for long hauls. If the loads justify it, we will go back to them.

There are pricing issues. It is cheaper to fly to Singapore from New Delhi than from Kathmandu, why?
I guess it is a marketing strategy. There are more airlines flying from Delhi to Singapore than from Kathmandu and vice-versa. Also there are more passengers there.

Have you also had an increase in Indian tourists?
There was an increase but everything slowed down after 11 September. We are now focussing on growth areas like China. Japan has also slowed down, but there are signs that the traffic is picking up again.

Are you happy about the money you pay for the services you get here?
Nepal is not a cheap place to operate to, taxes are quite high and you are taxed on the gross revenue, not the net. For example, we sell a ticket and give a certain percentage as commission to agents, but the government chooses to tax on the gross. It is a double whammy for us, we have to give commissions and also pay from the gross. These are areas that I hope the government will take note of and make it a little less expensive for people who want to invest in this country. Simple things like airport passes also make a difference. Now they tell me that because I work in the town office I cannot get a pass. Things like these make it very challenging. There is no facilitation committee or anything like that to take care of important but small things. We are investors in this country, make it easier for us to invest. Parking/ landing charges are one thing, they just raised the rental for airport offices by 100 percent, without prior consultation. They should have at least checked. That is not a way to do business.