China has agreed to provide two aircraft in grant for the Nepal Airline Corporation (NAC), while five others will be provided on soft loan basis.
Chinese Ambassador to Nepal Yang Houlan, during his meeting with Finance Minister Barsha Man Pun on Friday, said the northern neighbour was ready to provide 19-seater Harbin Y-12 and and 58-seater MA60 turboprop aircraft in grant. Tourism Ministry sources also confirmed the development.
According to Finance Ministry sources, Ambassador Yang told the finance minister that the aircraft would be provided at the earliest. The sources said the planes to be given in grant may arrive in Nepal within a month. “But it will take some more time to bring the aircraft under soft loan,” said one of the sources.
Although Nepal had requested for eight aircraft, the two sides finally agreed on seven. According to NAC, the aircraft to be available on soft loan basis will cost between Rs 5 million and Rs 15 million, depending on their capacity. The interest rate on the consessional loan will be 1.75 percent, according to ministry sources.
With a limited number of aircraft costing its market share, NAC has been trying to expand its fleet. It had requested the government to purchase some aircraft, following which the Finance Ministry requested China in November to provide aircraft either in grant or on consessional loan basis. In response, the Chinese side expressed readiness to provide some aircraft in grant and some under soft loan.
Then, a technical team of NAC had visited AVIC International, a Chinese government undertaking that manufactures the Y-12 and the MA60 aircraft, to examine whether the planes were appropriate for Nepal. The team had reported that the airplanes were fit for the Nepali skies.
NAC says if it gets more aircraft, it will be able to compete with private airlines and expand its services to more profitable sectors. Currently, it has no single flight on trunk routes with high profitability.
NAC officials said the small planes could be used for domestic operation and the bigger ones could be used for cross-border flights.
NAC’s domestic operation is in loss, as it provides the service at comparatively lower rates and has the compulsion to fly in remote districts.
As of now, NAC holds a mere three percent market share in domestic and 4.8 percent in international operation due to its limited number of aircraft. Out of six Twin Otter planes NAC has, only three are in operation. Canada had given the existing Twin Otters to NAC some 40 years ago.
Aviation experts said the Y-12 plane could be an alternative to the Twin Otters, but they say there should be a maintenance programme in place if NAC is to fly them. Earlier experiences with the Y-12 in Nepal have not been so good due to the lack of a proper maintenance programme.(Source:ekantipur)
The government has requested China to provide eight small and medium-sized aircraft for Nepal Airlines Corporation (NAC). The Ministry of Finance (MoF) has written to the Chinese Embassy asking for eight planes from the northern neighbour as ...
The umbrella agreement between Nepal and China that has been planned in December will finally approve the purchase of turbo powered aircraft Modern Ark 60 (MA-60) and Y-12 for Nepal Airlines Corporation (NAC). “During the visit of Chinese ...
Leading domestic airliner Buddha Air on Tuesday signed a $6.9 million loan agreement with the International Finance Corporation (IFC) of the World Bank Group to purchase a 72-seater ATR72-500 pressurised turboprop aircraft. The payback period ...
Nepal Airlines Corporation (NAC) is working on its most ambitious plan yet to purchase six new aircraft worth $356 million to recapture its declining market share. As per the NAC new business plan that has been submitted to the Ministry of ...
The government is serious about purchasing new aircraft for the ailing national flag carrier, according to caretaker minister for culture, tourism and civil aviation Post Bahadur Bogati. During his visit to Nepal Airlines Corporation (NAC) ...
The Ministry of Tourism and Civil Aviation is preparing to auction old aircraft that have lain abandoned at Tribhuvan International Airport (TIA) for scrap. The TIA management has passed a proposal to get rid of these unserviceable planes ...
With a view to expanding its services, Buddha Air, a leading domestic airline company, has added an ATR 72-500 aircraft to its fleet. The new aircraft landed at the Tribhuvan International Airport (TIA) on Sunday, flying from Abu Dhabi to Kat ...
The national flag carrier is flying both of its aircraft from the January-end as the aircraft sent to Israel for C Check is due to return. The aircraft that is in Israel for C Check also had a problem of crack in the engine. “The engine was f ...
Guna Airlines has started to fly Kathmandu - Bhairahawa – Kathmandu route from today. The airline with three Beech aircraft has recently started its mountain flight too, said a company official. The airline is currently flying to Pokhara, ...
One of the two Boeing 757 aircraft of Nepal Airlines Corporation (NAC) was grounded on Monday after engineers found some technical problems during a regular rest. Issuing a press statement, the national flag carrier said its one of its Boe ...
Buddha Air is starting its flight to the Indian city of Lucknow from January 7.It will be the second international flight of Buddha Air after Paro, Bhutan. “Buddha Air will fly to Lucknow every Sunday, Wednesday and Friday,” the airline sa ...
New airlines will be issued an Air Operator Certificate (AOC) only after they have acquired aircraft. The Civil Aviation Authority of Nepal (CAAN) has enforced the revised Air Operator Certificate Regulation 2012 (AOCR 2012) which requires pr ...
Nepal Airlines Corporation (NAC) has sent a “commitment fee” to Airbus to buy two A320-200 aircraft as per a revised memorandum of understanding (MoU) signed on April 6. NAC managing director Madan Kharel said they sent US$ 500,000 to the Eur ...
Nepal Airlines Corporation (NAC) aircraft landed at the Tribhuvan International Airport (TIA) this evening after four days. It has been grounded in Hong Kong since Tuesday after an unwelcomed guest was found in Hong Kong. “The aircraft ...
Buddha Air plans its first international flight from Kathmandu to Paro(Bhutan) from August 23. The company will operate four scheduled flights every week with its Beech 1900D aircraft that has a capacity of carrying 16 passengers. Durin ...
Tablet PC Prices in Nepal
Mobile Phone Prices in Nepal
LCD LED TV Prices in Nepal
Laptops Prices in Nepal
Bikes Prices in Nepal
New Loadshedding Timetable
List of Commercial Banks in Nepal