NAC requests AAR Corp to prolong pre-payment deadline
May 4, 2017
Nepal Airlines Corporation (NAC) is expecting to extend payment deadline to AAR Corp due to the long processing time of obtaining loan.
NAC is yet to obtain loan of Rs24 billion; Rs12 billion each from Employees Provident Fund (EPF) and Citizen Investment Trust (CIT).
The loan is expected to be received by NAC in two installments. The two A330 jets, expected to arrive in Nepal by January and March 2018, have been offered price of $104.8 million each by the American Aviation Support Company AAR Corp. NAC will be receiving Rs4 billion each from CIT and EPF for the first installment to be paid for AAR Corp.
According to the spokesperson of NAC Rabindra Shrestha, they have requested a 15-day extension time to send pre delivery order fee of Rs8 billion to AAR Corp.
NAC total debt will increase to Rs34 billion as the corporation already took loan of Rs10 billion in 2015 to buy two Airbus A320-200 from EPF.
The sales and purchase agreement for two wide-body Airbus A330-200 was signed by NAC and AAR Corp on April 7, 2017 which became the historic day in Nepali aviation industry.