Nepal Airlines evacuates Nepali students from Bengaluru

Nepal Airlines Corporation (NAC) has today evacuated stranded Nepali students from Bengaluru in India.
Issuing a press note, the national flag carrier said that Nepali students stranded in the satellite city of India in Bengaluru and nearby areas have been repatriated to Nepal amid the ongoing Covid-19 pandemic.
“This is the first rescue flight conducted from neighbouring India,” the press note reads, adding that it has been consistently carrying out rescue operations for stranded Nepalis from several countries during this time of crisis. Though, the airlines has not specified the number of rescued Nepali students, those who arrived from the NAC flight claimed that the NAC has been able to rescue only 81 students. “There are still more stranded Nepali students, who wants to return home but lack of knowledge and information has made the NAC flight bring less passengers,” they said.
Meanwhile, NAC has also conducted its chartered flight to Sudan. It has conducted the second chartered flight to the Africa for UN. Earlier, NAC has conducted chartered flight to Mali and Central African Republic for UN Peacekeeping Force. Today, the NAC flew some 238 Nepal Army Peacekeeping force for UN to Sudan. 

NAC operates chartered flight to Tokyo

Nepal Airlines Corporation (NAC) is operating first of its two chartered flights to Narita International Airport of Tokyo in Japan today evening.
According to the national flag carrier, NAC’s Airbus A330-200 aircraft will leave Tribhuvan International Airport (TIA) in Kathmandu for Tokyo at 9:30 pm and return to Kathmandu at 9:30 am tomorrow.
The second chartered flight has been scheduled for October 2, the NAC informed, adding that the two chartered flights have been taken as the national flag carrier’s preparation to fly to Narita International Airport in Tokyo. “NAC has initially showed interest to operate scheduled flights to Tokyo Narita but it launched flights to Osaka after it couldn’t get approval for Tokyo flights.”
The NAC has got at least 100 tickets booking for Narita flights as of today evening.
The national flag carrier currently is operating two flights a week to Osaka due to low passenger turnout. The NAC has launched its first direct flight to Osaka on August 29 with a fixed airfare at Rs 36,900 for one way and Rs 72,814 for a round trip. The national flag carrier had initially launched three flights a week on the sector but it is operating only two flights a week – on Tuesday and Saturdays – currently due to low passenger turnout.
The national flag carrier operates Airbus A330-200 aircraft that can carry 274 passengers per flight but it has around 100 passengers on Kathmandu-Osaka flight.

National flag carrier finalises new livery

Nepal Airlines Corporation has selected new livery from the competition.

"The livery design prepared by Biswas Pokharel has been selected from some 62 designes," according to the national flag carrier that has been losing its domestic and internation – both – market share due to lack of aircraft.

The NAC had asked for designs for the new livery designs. Some 31 artistes submitted 62 designs, the national flag carrier said, adding that a jury of five experts have selected the design of Pokharel. "The new livery will replace the old one gradually."

The airlines is acquiring six aircraft from China – within four months – and two aircraft from Airbus – within 2016 – for the domestic and international flights after a long dispute.

The new aircraft will carry new livery that reflects colours of Nepali flag, culture, nationality and also has the image of Akash Bhairav like in the old livery, the NAC added.

Nepal, China sign loan agreement to procure sic aircraft for national flag carrier

The government is finally procuring two and purchasing four – a total of six aircraft from China – for national flag carrier.

Finance secretary Shanta Raj Subedi and Chinese ambassador to Nepal Wu Chuntai signed worth two agreements – Framework Agreement on Provision of Concessional Loan Assistance and Economic and Technical Cooperation Agreement for Grant Assistance – worth Rs 6.77 billion on behalf of their respective governments Today finalising the aircraft deal.

China will provide a grant of Rs 2.94 billion to procure a 19-seater Y-12e and a MA60 in grant, whereas China EXIM Bank will fund Rs 3.72 billion in soft loans to buy three Harbin Y-12e and a 58-seater Modern Ark 60 (MA60).

Nepal will have to pay an interest of 1.5 per cent per annum, apart from 0.4 per cent service charge and management expenses. China has also provided a seven-year grace period on the 20-year loan repayment deadline that will help the national flag carrier enjoy earnings for during that period.

"The NAC must now prepare the loan repayment schedule and commercial plan," said Subedi after the agreement.
Likewise, Chuntai, on the occasion, said that the new aircraft will help Nepal promote tourism.

The induction of new aircraft to the ailing Nepal Airlines Corporation (NAC) is expected to give the ailing national flag carrier a new lease of life as it has been left with only one aircraft for the domestic flight.

China has pledged to deliver the aircraft gradually within three month after today's agreement.

NAC is planning to operate the MA60 for mountain flights and other accessible destinations like Pokhara, Bhairahawa, Biratnagar, Dhangadhi, Nepalgunj and Simara, while Harbin Y-12e will be operated for mountain flights and other remote destinations.

The NAC is planning to increase its domestic market share to 40 per cent in seven years. However, NAC’s domestic market share has declined to less than five per cent due to lack of aircraft. The number of annual domestic passengers stands at 1.58 million, according to official data.

The loan agreement followed the Cabinet's decision on November 14 to allow China made aircraft to fly in the Nepali skies, though some of the aviation experts have still been doubting the China-made aircraft and its certification.

NAC, EPF sign Rs 10 billion loan agreement, will help national flag carrier sign purchase deal with Airbus

The Employment Provident Fund (EPF) has finally agreed to lend Rs 10 billion to Nepal Airlines Corporation (NAC) for the ailing national flag carrier to purchase aircraft.
Managing director of NAC Madan Kharel and chief administrator of EPF Krishna Prasad Acharya signed the loan agreement here today.
The corporation is planning to purchase two narrow-body aircraft — A320-200 series — through the loan. Though NAC has already signed a Memorandum of Understanding (MoU) with the European aircraft manufacturer, Airbus, it has only sent a signing amount of $500,000, and is yet to sign the purchase agreement due to lack of financial closure.
Earlier, in April, NAC and Airbus had signed a revised MoU after over  three years of lingering due to various hurdles.
"Today's agreement will help us sign a purchase agreement with Airbus," said Kharel. "The corporation had last week written a letter to Airbus asking for 15 days time to enter into a purchase agreement."
Though NAC had bargained for 11 per cent interest, the agreement has been signed at 12 per cent interest on the loan — apart from 0.5 per cent service charge — with a payback period of 15 years after the corporation starts flying the new Airbus, informed Acharya, on the occasion. "The loan will be however, released according to schedule of the purchase agreement between NAC and Airbus."
Airbus is expected to deliver the first A320-200 aircraft by February 2015 and the second by March 2015.
NAC will separate 30 per cent amount from ticket sales — that is projected to be around Rs 150 million — every month to pay for the loan, according to NAC. "However, NAC has to pay Rs 350 million, including principal and interest, every quarter."
Though the government has given a guarantee against the loan, the new aircraft that NAC is going to buy, the corporation's head office in New Road, and its land in Sinamangal have also been kept as collateral against the loan, it added.
Without the aircraft, the national flag carrier has not only been unable to expand its international route but also reduced lucrative routes like New Delhi.
The corporation has two age-old Boeings that are usually grounded due
to regular technical glitches. Due to lack of aircraft with the
national flag carrier, the number of inbound tourists has also started dwindling. In the last five months in 2013, arrivals via air for three months were lower compared to 2012.
NAC is also planning to get two aircraft on dry lease for international flights till the new aircraft arrives in 2015.

Airbus indicates to jack up prices of aircraft

The visiting Airbus team has informed Nepal Airlines Corporation (NAC) that the prices of aircraft have gone up in the last four years since it signed agreement in 2009.
“Airbus will supply two narrow body aircraft by the end of 2014, if NAC agrees ‘to pay increased factory expenses’ as the current price of the aircraft has gone up since 2009, when an Memorandum of Understanding (MoU) was signed between the two companies. Besides, the deal itself has undergone change,” the team has informed the NAC officials during the presentation here today evening.
Though, the team will formally inform the corporation tomorrow during the talks, they have indicated the increased price of aircraft in last four years during today’s presentation, said a source at the NAC.
Earlier the deal was for one wide body and one narrow body aircraft. Now NAC is seeking two narrow body aircraft
“They are ready to supply two aircraft, but with changes in the price as manufacturing cost has increased, according to them,” said the source. “If the government agrees to the revised terms that include increased factory cost, Airbus will supply the aircraft by the end of 2014.”
Airbus had quoted $41.28 million for a narrow body aircraft and $92.84 million for a wide body aircraft in the 2009-deal.
The talks team will submit its report to the NAC board tomorrow. “The board could approve the proposal and forward it to the ministry for the final approval from the cabinet,” the source added.
Earlier, the government had decided to buy eight aircraft, including two from Airbus and six from China’s AVIC Holdings.
NAC had planned to purchase one A 330–200 wide body and one A– 320 single aisle aircraft for its international fleet and signed an MoU to this effect in 2009.
A three-member sub-committee held talks with Airbus representatives yesterday and today.
The corporation had been mulling which of the options would be best: to call a fresh global tender as per the direction of the cabinet for two new aircraft or continue with the Airbus agreement.
NAC has been witness to decline in its international passengers over the last decade as it has had to cut its flight frequency due to insufficient aircraft to manage passengers.
Earlier, NAC enjoyed around 30 per cent of the total market share of international flights to Nepal. The only national flag carrier had to cut down its flights and frequency due to lack of aircraft and to manage operational costs.

NAC aircraft back from C-Check, adds flights for peak season

After the Nepal Airlines Corporation’s (NAC) one of the aircraft landed back at the TIA today morning after C-Check, it is operating four flights to Doha and Hong Kong from today due to the peak season.
"Immediately after the arrival of its Boeing 9N ACB aircraft from Israel today morning, NAC has added one flight each to Doha and Hong Kong," according to the ailing national flag carrier that is increasing flights to Doha and Hong Kong from tomorrow as its 9N ACB aircraft will return after a complete Comprehensive Check (C-Check).

Earlier this month, NAC had increased the utility hour of its 9N ACA aircraft to 12.5 hours a day as the other Boeing aircraft was sent for a C-Check to Israel on August 28.

Normally, one aircraft is operated for 10.5 utility hours a day. Along with the extended utility hour of its only aircraft, the ailing national flag carrier had reduced its international flights since August 29. Since August 29, NAC had been operating 9N ACA to all its destinations.

However, NAC currently does not have any plans to resume flights to Dubai and Delhi. 

NAC had suspended its flights to Dubai and Delhi and had also reduced its flights to Kuala Lumpur, Bangkok, Doha and Hong Kong. NAC usually operates three flights each to Bangkok and Hong Kong, three flights to Doha and Dubai, and six flights to Kuala Lumpur in a week making it 15 flights a week, besides seven weekly flights to New Delhi.

NAC has a capacity of two flights a day on average. During emergencies, it operates only one aircraft to five different destinations.

Along with NAC, there are a number of international airlines that will also increase their flight frequency to manage passenger flow during the peak season.

According to the Civil Aviation Authority of Nepal, Air Asia X, Gulf Air, and China Eastern are some airlines which have applied to increase their flight frequency for the peak season, and some of them have received permission.