NAC Is Compelled To Pay High Insurance Premium For Its Chinese Aircrafts
In 2014, Nepal Airlines Corporation (NAC) had brought two Chinese aircraft Xian MA-60 and Y-12e from china for domestic service. Unfortunately, the insurance premium that NAC needs to pay for its Chinese aircraft is very high as compared to other aircrafts.
NAC has requested Chinese officials to reduce the premium amount but they aren’t giving much attention regarding it. On Monday held meeting between NAC, Civil Aviation Authority of Nepal (CAAN), Ministry of Tourism, Culture and Civil Aviation and Chinese civil aviation authority’s high personnel, Chinese officials concluded that reduction in premium amount is not possible. But they informed that they will search for the cheap insurance company of their country in order to provide some relief to NAC.
Currently, NAC pays yearly insurance premium of 1.5% of total cost of aircraft for its A320 and B757 respectively. But in case of Chinese aircrafts, NAC has been compelled to pay 4 times the premium of A320 or B757 for its Chinese aircrafts.