NAC forms committee to buy aircraft

Nepal Airlines Corporation has formed a study committee to purchase aircraft for the ailing national flag carrier.
The 10-member committee -- that has directors from different departments of the NAC -- is headed by Dr Kiran Poudel Chhetri as the coordinator.
According to the corporation the committee will study directives and suggestions of Public Accounts Committee before recommending to amend the Public Procurement Act.
After 24 years, Nepal Airlines Corporation had tried to purchase an aircraft through a direct deal but the Public Procurement Act landed its executive chairman Sugat Ratna Kansakar in the soup as the national anti-corruption agency arrested him on the charge of misusing his authority.
The fiasco made Airbus -- with which the NAC entered into an agreement to purchase aircrafts -- cancel its deal and return lock up money.
Earlier on February 27, the Special Court set a bail amount of Rs 60 million for Kansakar, the main accused in the Airbus purchase deal. He has been subsequently sent to Dilli Bazaar Prison after he failed to deposit the amount. The Court concluded that Kansakar had gone ahead with the deal worth Rs 10 billion and sent the non-refundable lock-up money to the European Airbus company without making any arrangement for the budget. The court found it very surprising that the lock-up money was sent without having reached any purchase agreement with the company.
NAC had to modernise its international fleet planned to purchase one A330-200 wide body and one Airbus A-320 single aisle and had signed a Memorandum of Understanding at the Dubai air show with the European aircraft manufacturer.
The purchase of A330 and A320 could have opened Nepal’s doors to the world, according to the travel and tour operators, who wanted the deal to materialised.
The Special Court has, however, acquitted Kansakar -- including five other officials -- of the graft charges.
The airlines started in 1958 has tow age old Boeing 757-200 and it has been trying to add some new aircraft to increase its destinations. However, every attempt of purchasing new aircraft has been dogged by controversy.