NAC gets lock-up money back from Airbus

The national flag carrier has received the lock-up money -- the bone of contention in the recent aircraft purchase dispute -- back today from the Airbus."We have received $7,49,992 today in our account in the Himalayan Bank," said Tarani Dahal, president of the employees union that has been demanding immediate purchase of aircraft. Nepal Airlines corporation (NAC) had, however, sent $7,50,000 to the European aircraft manufacturer for a narrow body and a wide body aircraft that the national flag carrier has thought of buying. The NAC had sent $2,50,000 for a narrow body aircraft and $5,00,000 for a wide body aircraft as a lock-up money according to the agreement between the manufacturer and the NAC that is flying decade old two Boeings. Though the private sector has been urging to immediately purchase aircraft for the ailing national flag carrier, the purchase has been under dispute ever time the NAC tried to go ahead. The NAC management decided to purchase aircraft strictly following the Public Procurement ACT (PPMO), but the top management have been accused of graft, he said, adding that they are planning their next move on Sunday. At present the price of the aircraft has gone up by 10 per cent to 15 per cent, which will eventually not only lead NAC to inable to buy another aircraft but also cause heavy loss. The NAC was buyig the A320 for $41.5 million for one aircraft where as Air India has recently ordered 49 A320 for $43.5 million due to an increment of $2 million recently. But K B Limbu, managing director of NAC claimed that the lock-up maney return by the Airbus company willnot end the case as the case is under the CIAA juridiction for sending the money without following the due procedure.