Nepal Airlines Corporation (NAC) has asked the Finance Ministry to clear the final delivery payment for its two Chinese-made Y12e aircraft on order. Two of the four 17-seater planes ordered from the Chinese manufacturer have been delivered.

The final delivery payment amounts to 30 percent of the total cost of the aircraft.

The national flag carrier has sent its request to release the payment through the Tourism Ministry. 

In November 2012, NAC signed a commercial agreement with AVIC, a Chinese government undertaking, to procure six aircraft—two 56-seater MA60 and four Y12e.

As part of the deal, China provided one MA60 and one Y12e worth Rs2.94 billion as gifts in 2014. The other aircraft were bought with a Rs3.72 billion soft loan provided by China’s EXIM Bank.

Of the six aircraft, four of them have already been delivered to NAC. “We have begun work to bring the remaining two Chinese aircraft as now we have instructor pilots to fly them,” said Rabindra Shrestha, spokesperson of NAC. “As soon as the Finance Ministry requests EXIM Bank to release the payment to the aircraft manufacturer, we will send our technical team to China to inspect the planes before bringing them here.” 

NAC had been putting off taking delivery of the rest of the planes following problems, including load restrictions, with the two that had joined its fleet.

Last February, the carrier agreed to receive an MA60 and a Y-12e aircraft after being assured by AVIC that it would provide every help necessary to keep them flying in the Nepali skies. 

According to NAC, it has prepared three senior pilots, seven co-pilots and an instructor pilot for the Y12e aircraft. The manufacturer completed assembling the planes for Nepal in early 2015.

The corporation has also asked the Tourism Ministry to settle the final installment of the payment to the aircraft supplier. After the two Y-12e aircraft arrive, the national flag carrier’s domestic fleet will swell to nine planes including three vintage Twin Otters.

BB firms purchase of NAC’s Boeing

KATHMANDU: Non-operational Nepali carrier BB Airways has firmed the purchase of a Boeing 757 with NAC.

Under the deal signed three days ago, BB will release the payment within 45 days, said NAC Spokesperson Rabindra Shrestha. Last April, the carrier put one of its two Boeing 757s up for sale with a minimum price of $1.71 million. However, there were no takers even after publishing two consecutive auction notices. NAC then issued a notice in June for direct negotiations for the sale of the 757 named Karnali bearing

registration number 9N-ACA. Eventually, five companies (US-based Avion Systems, Himalaya Aviation Consultant, TBI Group Nepal, BB Airways and Israel-based APS Airparts, Services and Supplies) and two individuals (Janardan Man Dangol and Anu Manandhar) showed interest to hold negotiations. The aircraft was eventually sold to Bhawan Bhatta, managing director of BB Airways, for $1.46 million. BB has paid 10 percent of the total cost of the aircraft to NAC as advance payment. (PR)