NAC preparing to pay for first of two Airbus 330-200 wide-body aircraft

18th Jun, 2018 | Tourism Mail Crew

KATHMANDU, Jun 18: The Nepal Airlines Corporation (NAC) is preparing to pay the remaining installation of its first new Airbus 330-200 wide-body airplane. NAC is sending around $68.2 million to Norton Rose Fulbright in Europe in time to receive the airplane on June 27.

NAC had sought permission from the Ministry of Culture, Tourism and Civil Aviation for foreign exchange facility to make the payment, earlier in June. After studying and approving the proposal, MoCTCA has forwarded a letter to Nepal Rastra Bank today requesting it to provide the foreign exchange facility to NAC, according to Ghanashyam Upadhyaya, spokesperson for MoCTCA.

NAC has already sent $39.50 million as pre-delivery fee and $500,000 as commitment fee for each of two Airbus 330-200 wide-body aircraft in June of last year. The purchase is one of the largest ever aircraft purchase deals in Nepal’s aviation history.

The national flag carrier had signed an agreement with AAR Corporation to buy two Airbus 330-200 series wide-body aircraft worth $209.6 million. AAR Corporation will be providing the aircraft to NAC in partnership with German Capital and Hi-Fly Airlines. NAC plans to pay remaining money for the second aircraft by end of July.

“We have already paid the commitment and pre-delivery fees to AAR Corp and now the process to make the full payment has begun,” said Sugat Ratna Kansakar, managing director of NAC.

According to the agreement signed between NAC and AAR Corporation, NAC has to pay the final instalment two days before the aircraft are delivered.

The first of the two planes is scheduled to arrive in Kathmandu on June 27, whereas the second wide-body aircraft is expected to be delivered a month after the arrival of the first one or in July this year.

NAC will be using the new Airbus A330-200 aircraft for flights to Dubai, starting on August 1. Currently, NAC is conducting international flights through two narrow-body Airbus aircraft and one Boeing 757.