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NAC to issue aircraft lease tender notice next week

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KATHMANDU, May 11: State-owned Nepal Airlines Corporation (NAC) is soon getting two aircraft on lease to expand international services and put an end to the practice of postponing or canceling flights due to unavailability of airplanes.



In this regard, the national flag carrier is issuing a tender notice next week calling on domestic and international parties to participate in the bidding to supply two narrow-body Airbus aircraft.[break]



“We are planning to issue a tender notice to lease two Airbus in the coming week,” said Ram Kumar Shrestha, Minister for Culture, Tourism and Civil Aviation, addressing the inauguration function of the ´Fifth National Tourism Fair 2013´ at Bhirkutimandap, in Kathmandu, on Friday. If everything goes according to plan, NAC will be operating flights with two additional aircraft in the next 4 to 5 months.



The latest decision comes at a time when the state-owned airline company, which has not been able to add new aircraft to its fleet for over two decades, has already extended advance payment to Airbus to purchase two narrow-body aircraft.



“Though we sent the lockup money for the purchase of new aircraft on April 23, it will take around 2 years for them to be delivered. So, we have decided to take two aircraft on lease in order to operate international flights smoothly,” said Shrestha.



Mohan Krishna Sapkota, spokesperson for the Minister of Culture, Tourism and Civil Aviation, said that the tender notice will call upon prospective aircraft leasing companies to submit requests for proposal (RFP) to rent out two A320-200 aircraft.



Sapkota said NAC will only entertain proposals for dry lease, under which the company providing the aircraft will not be obliged to provide crew members and undertake other liabilities like insurance.



“As aircraft provided under dry lease is cheaper than wet lease, NAC has decided to pursue economical means while hiring the aircraft,” Sapkota told Republica.

NAC said that the company extending aircraft on lease will have to provide trainings as per the need as NAC does not have pilots, engineers and crew members who could operate Airbus.



NAC´s fleet currently comprises of several small aircraft and two vintage Boeing 757s, one of which is regularly grounded for repairs, thereby, affecting the Corporation´s scheduled flights on a regular basis.



“It is a bad news for us that NAC recently halted its services to Delhi and Dubai. By taking aircraft on lease, we are hopeful about resuming flights to destinations that we earlier used to fly to,” said Shrestha. Currently, NAC is conducting flights to four destinations whereas a decade ago, it was flying to 21 destinations.



Shrestha also informed that the process of upgrading Pokhara airport is going on full swing and the process of upgrading Lumbini airport has also started. He also added that the ministry is also planning to soon start construction work at Nijgadh airport.



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