Nepal Airlines signs Rs 10 billion loan pact with EPF to buy Airbus
Travelbiznews Service-
Kathmandu, June 18: Nepal Airlines Corporation (NAC) signed a loan agreement with the Employees’ Provident Fund (EPF) for Rs 10 billion to buy two narrow body Airbus aircraft today.
According to the agreement signed by chief of EDF Krishna Prasad Acharya and General Manager of NAC Madan Kharel,the Employees’ Provident Fund will provide Rs 10 billion to NAC as loan to purchase two Airbus 320-200. The interest on the loan has been set at 12 percent per annum.
Nepal’s national flag carrier currently possesses two ageing Boeing 757s. Airbus will deliver one of the two A320-200 aircraft in February 2015 and the second in March.
NAC’s share of the tourist market was 2.3 percent last year and the carrier slipped to the 14th spot among the 29 international carriers serving Nepal.
Earlier, Nepal Airlines Corporation (NAC) has signed a Memorandum of Understanding (MoU) to buy two Airbus A320 aircraft equipped with Sharklet fuel saving wing tip devices on April 29.
According to Airbus , the A320 was chosen for its unbeatable economics, its unique performance capability required for high altitude airport operations and its flexibility that enables it to be deployed on a wide variety of routes.
The A320 is fully equipped to benefit from Required Navigation Performance (RNP) allowing the aircraft to fly precisely along predefined routes using state-of-the-art onboard navigation systems. This is particularly useful for operations at high altitude airports which are constrained by mountains such as Kathmandu.
NAC was incorporated on 1 July 1958 through the enactment of the Nepal Airlines Corporation Act. 1962. The Airline currently flies to four international destinations and 25 spectacular domestic locations in the heart of the Himalayas.
The A320 Family, which includes the A318, A319, A320 and A321, is recognised as the benchmark single-aisle aircraft family. More than 9,400 Airbus A320 Family aircraft have been sold to more than 385 customers and operators worldwide, making it the world’s best selling commercial jetliner ever
