Nepal | July 09, 2020

NAC selects AAR Corp to deliver two aircraft

Himalayan News Service
Share Now:
Nepal Airlines Corporation aircraft

File-A Nepal AIrlines Corporation aircraft at the Tribhuvan International Airport in Kathmandu. Photo: Keshav P. Koirala

Kathmandu, January 15

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 was selected from among the bidders by NAC board led by secretary of Ministry of Culture, Tourism and Civil Aviation.

The NAC board has selected the lowest bidder, AAR Corp, which has proposed to supply each aircraft for $104.8 million. As per Sugat Ratna Kansakar, managing director of NAC, negotiations with the supplier will be held very soon in Kathmandu. “Cost of the aircraft and delivery date will be finalised during the negotiations,” Kansakar told The Himalayan Times.

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. According to Kansakar, NAC has approached civil aviation authority of Japan to receive landing permit and in long run NAC has plans to expand its network to Australia and Europe.

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. NAC in the past too had obtained loan from the aforementioned government owned financial institutions and they have been charging nine per cent interest rate from NAC. “This time we have also approached private banks and they are positive about financing the deal as a consortium,” informed Kansakar. NAC expects the private banks to quote an interest rate that is lower than that of the EPF and CIT.

The government has said it will stay as a guarantee for the loan that NAC is planning to obtain.

As supplier has been issued LoI and invited for negotiations, NAC will soon finalise loan agreement with the government owned financial institutions, as per Kansakar.

A version of this article appears in print on January 16, 2017 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Isolation wards empty as COVID-19 cases stay put in quarantine

DHANGADI, JULY 7 Isolation wards that were set up to keep COVID-19 infected patients are mostly empty as most of the infected continue to stay in quarantine shelters in Sudurpaschim Province. As per data with Sudurpaschim Province Social Development Ministry, as of now, the total number of COV Read More...

Irrigation project elates farmers

NEPALGUNJ, JULY 7 Farmers in Banke were elated after Sikta Irrigation Project released water in the project’s western and eastern canals keeping in view the paddy plantation time this year. Man Bahadur Magar of Kamdi, Duduwa Rural Municipality, said he could plant paddy on time this year aft Read More...

Financial institutions, banks urged not to pile pressure for loan payment

POKHARA, JULY 7 Western Regional Hotel Association, Pokhara, has urged banks and financial institutions not to pile pressure for loan payment. Banks and financial institutions are pressing hotels and the tourism sector to pay back the loan and interest, on the ground that the fiscal year was d Read More...

Parliamentary committee probing irregularities

DHANGADI, JULY 7 The federal Parliament’s Agriculture, Cooperatives and Natural Resources Committee has started investigating alleged irregularities carried out in the name of scientific forest management. A team of the panel comprising Shanta Chaudhary, Satya Narayan Sharma Khanal and Raj B Read More...

‘Don’t just build back better, build back different’

According to the United Nations, the coronavirus pandemic is deepening pre-existing inequalities and exposing vulnerabilities in social, political and economic systems. The pandemic has compounded the socio-economic challenges facing women. Regarding this issue, Arpana Ale Magar from The Himalayan T Read More...

Helipads coming up in Banke, Bardiya

NEPALGUNJ, JULY 7 Local levels have started constructing helipads to control possible loss of lives and property due to floods in Banke and Bardiya. Helipad construction is under way to rescue people trapped in the floods. Choppers can take off and land even at night time in the new helipads. Read More...

Diprung Chuichumma RM to mobilise teachers in community from July 22

KHOTANG, JULY 7 Khotang’s Diprung Chuichumma Rural Municipality is preparing to mobilise teachers in every tole of the local level and resume teaching-learning activities from July 22. The rural municipality decided to this effect after the school remained closed for the past four months due Read More...

Hospitals to be upgraded next fiscal year

HETAUDA, JULY 7 Bagmati Province government will upgrade several hospitals in the province next fiscal. According to the Ministry of Social Development, the capacity of Hetauda Hospital will be upgraded to 300 beds. Bhaktapur, Sindhuli and Trishuli hospitals will be expanded to 100-bed hos Read More...