NAC’s Fleet Expansion Saga: Leasing two Narrow-Body Aircraft, While One of its Airbus A320 Remains Missing in Israel.

Nepal Airlines Corporation (NAC) is on the verge of enhancing its international flight operations, with plans underway to lease two Airbus narrow-body aircraft. This move comes as part of the corporation’s strategic efforts to bolster its presence in lucrative markets and cater to growing passenger demands. 

Seven prominent aviation companies have eagerly stepped forward, expressing keen interest in leasing their Airbus A320-200 series aircraft to NAC. The corporation, seeking aircraft with a capacity of 158 seats, aims to carefully evaluate proposals from these firms to ensure both technical compatibility and financial viability. 

Ramesh Paudel, the spokesperson for NAC, revealed that the evaluation process is already underway, with a meticulous examination of the technical and financial aspects of each proposal expected to take approximately one month. The corporation remains committed to selecting a leasing partner that aligns closely with its operational requirements and financial objectives. 

The leasing model under consideration involves a wet lease arrangement, wherein the aircraft comes fully equipped with crew members, including captains, engineers, and air hostesses. While this approach entails an estimated cost of $3,000 per hour of flight time, NAC anticipates substantial profitability, with projections indicating annual profits exceeding Rs 1 billion solely from the operation of the narrow-body aircraft. 

Notably, the expansion of the fleet holds promising prospects for NAC’s revenue trajectory, with the corporation anticipating steady growth over the coming years. With a robust business plan in place, NAC foresees an impressive profit of Rs 1.69 billion from narrow-body aircraft operations alone within the next five years. 

This ambitious endeavor underscores NAC’s unwavering commitment to enhancing air connectivity and further solidifying its position as a leading player in the aviation sector. As the corporation prepares to embark on this transformative journey, stakeholders eagerly anticipate the positive impact it will have on Nepal’s aviation landscape and the broader economy.

While NAC is moving forward with plans to augment its fleet, challenges persist as one of its A320 aircraft remains stranded in Israel for maintenance, with uncertainty looming over its return date. Currently, NAC is operating with just two Airbus A330 and one Airbus A320. This setback underscores the corporation’s ongoing struggle to manage its existing fleet effectively.