NOC, NAC agree to airlift aviation fuel
Mon, Oct 19, 2015 11:17 AM on External Media,
Two state-owned entities—Nepal Airlines Corporation (NAC) and Nepal Oil Corporation (NOC)—have reached an agreement to supply uninterrupted aviation turbine fuel to domestic airlines. As part of the deal, NAC has agreed to airlift 690 tonnes of fuel within 10 days dispatching its Boeing 757 to Kolkata, India. NAC will conduct 30 return flights to airlift fuel.
Pradip Yadav, chief of NOC’s airport depot, said NAC Managing Director Sugat Ratna Kansakar and NOC Managing Director Gopal Bahadur Khadka signed an agreement to this effect.
“The deal assures the domestic airlines will not face fuel shortage during Dashain and Tihar festivals,” said Yadav.
The unofficial trade embargo imposed by India citing Tarai unrest has affected fuel imports through all Nepal-India border points.
On Friday and Saturday, NAC had airlifted 93 tonnes of fuel. NOC will make weekly payments to NAC. The oil monopoly has agreed to pay $24,620 per flight. The aviation fuel cost Rs60 per litre, including taxes, in Kolkata.
At present, NOC has been selling the fuel for domestic airlines at Rs118 per litre.
However, adding transportation costs, it will cost Rs 178 per litre to NOC. According to NOC, it will be incurring a loss of Rs50 on a litre of the aviation fuel.
Meanwhile, Yadav said the fuel stock at airports outside Kathmandu is sufficient to handle domestic airlines rush and there will be no shortage. NOC said it has 422 tonnes of jet fuel in Kathmandu.
