NAC reduces debt by nearly Rs 4 billion in a year

KATHMANDU: Nepal Airlines Corporation (NAC) has managed to reduce its debt by nearly Rs 4 billion within a year.

Issuing a statement on Monday, the national flag carrier announced that it made a combined payment of Rs 830,955,281 in interest and installments to the Employees Provident Fund (EPF) and Citizen Investment Trust (CIT) on Sunday. Between mid-July 2022 and March 2023, NAC paid a total of Rs 2,942,865,844 to these lenders, according to the statement.

NAC has borrowed Rs 22 billion from the EPF and Rs 12 billion from CIT to finance the acquisition of two Airbus A320 and two Airbus A330 aircraft. The government acted as the guarantor for these loan agreements.

Meanwhile, NAC has announced plans for domestic fleet expansion. In the statement, the NAC said that it has initiated the process of acquiring three aircraft for short take-off and landing (STOL) operations.