The national flag carrier, Nepal Airlines Corporation has demanded compensation from the Maintenance Repair Organization (MRO) in Israel Israel Aerospace Industries (IAI), for not conducting the maintenance of its Airbus A320 aircraft in accordance with the aircraft maintenance contract.
IAI could not provide the required engine immediately as illustrated in the agreement thus the engine sent for maintenance in Bhadra is going to be used in the aircraft. In such a situation. Due to the Public Procurement Act, the company cannot switch suppliers, which resulted in the aircraft being grounded for almost four months.
An official form Nepal Airlines stated that under the agreement, the demand for compensation focuses on the delay in providing the engine, loss of revenue, among other issues. The Corporation has also been informed that the rent for the engine, which has been attached to the right wing of the aircraft grounded for the period, will not be waived.
He said, “Business losses are significant. There is still some certainty to come. The insurance claim has been made. Now, after assessing how much compensation it will give, details of the remaining balance are yet to come.”
With one Airbus A330 and two Airbus A320 aircraft grounded, regular flights as per the Corporation’s schedule have been affected for almost four months.
Due to engine problems, this aircraft has been in a grounded state since December 15 for maintenance, and it was sent to Israel Aerospace Industries for the maintenance.
The option of managing another engine within a week in case of a problem in the engine is mentioned in the agreement. According to the agreement, arrangements must be made to complete the engine maintenance within 65 days.
