NAC orders 2 Airbus planes via Hi Fly

The foreign consortium selected to supply two Airbus A330-200 to Nepal Airlines Corporation (NAC) has formally placed an order for the aircraft with the manufacturer, indicating that they will be delivered on time.

“Hi Fly has placed its first direct firm order with Airbus for two A330-200s,” said the Airbus website on Wednesday. The orders were placed during the ongoing Paris Airshow.

Six days ago, NAC deposited $79 million into the escrow account held by Norton Rose Fulbright in Europe as advance payment for the two wide-body aircraft. The payment amount is 35 percent of the cost of the jets.

NAC had signed a $209.6-million contract with the consortium of three companies led by AAR Corp to buy two long-range Airbus A330-200, making it the largest ever aircraft purchase deal in Nepal’s aviation history.

The national flag carrier selected a consortium led by US-based AAR Corp to supply the planes. AAR Corp has formed a special purpose vehicle led by Hi Fly, a Portuguese airline, to procure the aircraft. The new company called Hi Fly X Ireland will specifically look into the procurement process, said an NAC official.

“Hi Fly X Ireland has been barred from accepting other aircraft delivery orders until it supplies the two aircraft to NAC,” said Buddhi Sagar Lamichhane, joint secretary at the Tourism Ministry, who also sits on the NAC board.