NAC, AAR Corp ink agreement

Kathmandu, April 7

Nepal Airlines Corporation (NAC) has signed an agreement with AAR Corporation of the United States to procure two Airbus A330-200 aircraft.

The agreement was signed between Managing Director of NAC Sugat Ratna Kansakar and Deepak Sharma, a representative of AAR Corporation.

As per the deal inked today, NAC will pay 35 per cent of the cost of two wide-body Airbus aircraft to AAR Corporation as the first tranche. NAC is purchasing these aircraft at $209.6 million. NAC has already issued $1 million to the American company a month ago as initial payment for the aircraft. These Airbus planes will have seating capacity of up to 280, according to NAC.

The agreement between the two companies states that AAR Corporation will hand over both the Airbus

aircraft to NAC within the second trimester of 2018. According to NAC, the national flag carrier will have five aircraft to fly to international destinations following the arrival of two A330-200 wide-body Airbus planes.

NAC has plans to fly to Korea, Japan, Australia and Saudi Arabia, among other international destinations with the two new Airbus aircraft.