KATHMANDU, March 27: The two-month long effort made by Nepal Airlines Corporation (NAC) to add an aircraft to its fleet has proved futile after an American airline selected to lease the plane ´defaulted on its bid commitment.´ However, it is still not sure whether NAC will have to restart the bidding process. [break]
"We failed to reach an agreement after the Americans asked for additional amount to cover travel expenses of the crew members," Sugat Ratna Kansakar, chief of NAC told myrepublica.com. The negotiations with the staff of the airlines had continued for three days.
Some two months ago, NAC started public bidding process to lease an aircraft for a period of six months. Of the 19 companies that had participated in the bidding, North American Airlines (NAA) quoted the lowest rate of US$3,690 for per hour of flight. NAC was all set to award the deal to NAA.
"But during the negotiation process, the staff of the airlines asked us an additional US$365 per hour," Raju KC, a senior official of NAC, said. "This was to cover the transportation cost of crew members flying home."
The aircraft supplier had pledged to provide a total of 18 crew members. And as per the US Labor Law, airline staff should be allowed to go home every two weeks. "But the commitment expressed by the airlines in its bid document says the aircraft supplier is solely responsible for all the costs of crew members," KC said. "This became the bone of contention."
NAC was acquiring the aircraft on wet lease under which the supplier of aircraft provides crew members and bears maintenance cost of the airplane and insurance cost of the aircraft and crew members. For acquiring this service and using its aircraft, NAC was supposed to pay a minimum of Rs 82.19 million per month to the company.
After the arrival of new aircraft NAC was planning to add Mumbai as its new destination. It was planning to operate three flights a week to this financial capital of India. It was also planning to fly 14 times to New Delhi, four times to Malaysia´s capital Kuala Lumpur, three times to Hong Kong, three times to Dubai and four time to Qatar´s capital Doha.
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