Airbus ready to deliver jets under past agreement
KATHMANDU, NOV 08 -
Airbus has reiterated to supply jets to Nepal Airlines Corporation (NAC) under the same agreement signed three years ago, but stated that the aircraft price quoted at the time will not remain the same.
According to Raju Bahadur KC, acting managing director of NAC, Airbus has retained its aircraft delivery positions under the old agreement, but due to inflationary factor it would not be able to sell jets on the price quoted three years ago.
Airbus had quoted $41.28 million for an A320-200 (narrow body) aircraft and $92.84 million for A330-200 (wide body) aircraft on November 6, 2009. “The exact inflationary price has not been ascertained but it will be relatively expensive than the deal signed three years ago,” said KC.
However, the European plane manufacturer has expressed its willingness to negotiate on the issue further if required, but also stick to the point that that it had won the global tender, and officially it is still eligible to place jet delivery order to NAC now.
Although, NAC team had invited Airbus to settle any possible legal hurdles due to past agreements to begin a fresh aircraft purchase process, officials said that the issue was not discussed extensively.
NAC top officials said that the two-day talks between NAC and the Airbus did not reach to a firm conclusion but insisted it was somehow fruitful that has ended a three-year deadlock.
Dilemma still persists on whether NAC will recommend the government to revive the old plan or start a negotiation afresh. According to NAC officials, the final decision will be left to the government whether or not to revive the old process.
“The talks did not yield a concrete result, as both sides kept their particular views,” said a government official, who attended the meeting. “However, the positive part of the meeting is that it has opened doors to discuss the matter in the next round.”
The three-member Airbus team was led by Sheel Shukla, Airbus senior sales director, while KC headed the NAC team. The NAC team is expected to submit its detailed report of the two-day talks to its board shortly.
The move by the national flag carrier to expand its international fleet also follows the Cabinet’s nod on August 1 to procure narrow-body jets. Subsequently, the Immediate Governance and Economy Development Action Plan 2012, unveiled by the Prime Minister’s Office on October 16, directed the Tourism and Finance ministries to procure two aircraft for NAC’s international operations. The government has also warned that failure to conclude the process would result in removal of concerned officials from their responsibilities.
The NAC board had decided to purchase two aircraft from Airbus on Oct 26, 2009. However, the purchase plan ran into controversy and was cancelled following the directive of the now defunct parliamentary Public Accounts Committee on Dec 28, 2009.
On May 25, 2010, the Ministry of Finance asked the Ministry of Culture, Tourism and Civil Aviation to scrap the entire purchase process. NAC and its line ministry have not scrapped the deal formally, fearing legal implications. The plan was revived again on Dec 29, 2011.
Airbus has reiterated to supply jets to Nepal Airlines Corporation (NAC) under the same agreement signed three years ago, but stated that the aircraft price quoted at the time will not remain the same.
According to Raju Bahadur KC, acting managing director of NAC, Airbus has retained its aircraft delivery positions under the old agreement, but due to inflationary factor it would not be able to sell jets on the price quoted three years ago.
Airbus had quoted $41.28 million for an A320-200 (narrow body) aircraft and $92.84 million for A330-200 (wide body) aircraft on November 6, 2009. “The exact inflationary price has not been ascertained but it will be relatively expensive than the deal signed three years ago,” said KC.
However, the European plane manufacturer has expressed its willingness to negotiate on the issue further if required, but also stick to the point that that it had won the global tender, and officially it is still eligible to place jet delivery order to NAC now.
Although, NAC team had invited Airbus to settle any possible legal hurdles due to past agreements to begin a fresh aircraft purchase process, officials said that the issue was not discussed extensively.
NAC top officials said that the two-day talks between NAC and the Airbus did not reach to a firm conclusion but insisted it was somehow fruitful that has ended a three-year deadlock.
Dilemma still persists on whether NAC will recommend the government to revive the old plan or start a negotiation afresh. According to NAC officials, the final decision will be left to the government whether or not to revive the old process.
“The talks did not yield a concrete result, as both sides kept their particular views,” said a government official, who attended the meeting. “However, the positive part of the meeting is that it has opened doors to discuss the matter in the next round.”
The three-member Airbus team was led by Sheel Shukla, Airbus senior sales director, while KC headed the NAC team. The NAC team is expected to submit its detailed report of the two-day talks to its board shortly.
The move by the national flag carrier to expand its international fleet also follows the Cabinet’s nod on August 1 to procure narrow-body jets. Subsequently, the Immediate Governance and Economy Development Action Plan 2012, unveiled by the Prime Minister’s Office on October 16, directed the Tourism and Finance ministries to procure two aircraft for NAC’s international operations. The government has also warned that failure to conclude the process would result in removal of concerned officials from their responsibilities.
The NAC board had decided to purchase two aircraft from Airbus on Oct 26, 2009. However, the purchase plan ran into controversy and was cancelled following the directive of the now defunct parliamentary Public Accounts Committee on Dec 28, 2009.
On May 25, 2010, the Ministry of Finance asked the Ministry of Culture, Tourism and Civil Aviation to scrap the entire purchase process. NAC and its line ministry have not scrapped the deal formally, fearing legal implications. The plan was revived again on Dec 29, 2011.
Source: The Kathmandu Post
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