NAC makes deal with American Company to buy two Aircrafts

16th Jan, 2017 | Tourism Mail Crew

KATHMANDU, 16 Jan: Nepal Airlines Corporation (NAC) today issued a letter of intent (LoI) to an American leasing company, AAR Corp, to supply two-wide body Airbus A 330-200 aircraft. AAR Corp which had the lowest bid amount was selected to deliver the aircrafts.

NAC- American-Company

The company tabled the quotation of the lowest bid .i.e. $104.8 million for a wide body aircraft. But the NAC is still to ink agreement with the company for which the meeting between the representatives between two organizations will be held soon in the capital. There is still the chance of lower cost for the aircraft after the negotiation will be held and then the delivery date also will be set at the same time.

There were six bidders in the final round and the NAC board selected AAR Corp due to the appropriate rate it proposed and the credibility of the company. The bid evaluation committee had evaluated the proposals of 10 bidders but four did not qualify in the initial stage itself.

In the request for proposal, AAR Corp has offered to deliver the first aircraft by September 2017 and the other by March 2018.

Currently, NAC has two narrow-body Airbus aircraft and one narrow-body Boeing aircraft in its international fleet, which has been covering eight destinations.

The average flight range of the A 330-200 series aircraft will be nine to 10 hours. NAC is preparing to fly to Japan and South Korea after adding two wide-body aircraft. So far, the national flag carrier has received landing permit for South Korea and Saudi Arabia.

NAC has approached government owned Employees Provident Fund (EPF) and Citizen Investment Trust (CIT) and also private banks to obtain loan to purchase the two aircraft. The government has said it will stay as a guarantee for the loan that NAC is planning to obtain.