NAC signs revised MoU with Airbus for 2 jets
KATHMANDU, APR 06 -
The Nepal Airlines Corporation (NAC) on Friday signed a revised memorandum of understanding (MoU) with Airbus to procure two A320-200 aircraft.
As per the agreement, the European planemaker will deliver one of the two aircraft in February, 2015, and the second one will arrive in March. However, the exact price of the jets has not been revealed.
NAC Managing Director Madan Kharel and Airbus Senior Sales Director Sheel Sukla signed the MoU at NAC on Friday. The new agreement was signed after reviewing the old agreement (signed on November 9, 2009), according to NAC.
“The aircraft price is based on the ‘base price’ offered by Airbus in 2008,” said Sushil Ghimire, secretary of the Tourism Ministry. “However, Airbus has added manufacturing escalation price and other cost complemented by additional facilities in the jet.”
According to NAC officials, the aircraft could cost below $49 million at the time of delivery. The advance facility equipped in the aircraft increased the cost by an additional $0.7-$0.8 million. On Nov 6, 2009, the aircraft manufacturer had quoted $41.28 million for an A320-200 jet.
According to NAC, the aircraft will be equipped with the required navigation performance RNP system — the latest navigation equipment that enables aircraft to fly precisely along a predefined route using on-board navigation systems and GPS-based global navigation system. “Despite hefty increase in jet prices in the last five years, Airbus showed flexibility in price structure after frequent NAC negotiations,” the sources said.
NAC sped up the jet purchase process with Airbus after getting its board’s green signal which followed the Cabinet’s decision on Feb 11, 2013, to revive the old agreement. On Aug 1, 2012, the government had decided offer guarantee even before the NAC started the formal jet purchase process.
The Cabinet’s move came after the Supreme Court’s decision that the now-defunct Public Accounts Committee’s (PAC) order to the government to cancel the deal on Dec 28, 2009, was interference in NAC’s matters, and that the order does not hold any legality.
On Oct 26, 2009, the NAC board had decided to purchase two aircraft from Airbus to expand its international fleet.
However, with controversy surrounding the purchase process, the then Public Account Committee (PAC) had directed the government to cancel the deal. Subsequently on May 25, 2010, the Finance Ministry directed the Tourism Ministry to scrap the purchase process.
Source: The Kathmandu Post
