Airbus, Nepal Airlines in deal for two aircraft

Airbus and Nepal Airlines have signed an agreement for two aircraft, a A330-200 wide-body plane and a A320 single-aisle jet.

Nepal Airlines said on Tuesday the aircraft would be deployed on routes to Japan as well as to Europe, the carrier's first direct flights to the continent.

Announcing the deal at the Dubai Airshow, the companies said delivery of the two planes was scheduled for 2011 and valued at about $250 million.

The A320 is slated for delivery in September or October 2010, and will go to cities in China and India, while the A330 will be delivered in the first half of 2011, Nepal Airlines executive chairman Sudag Ratna Kansakar said.

The carrier also has four options it can exercise for more Airbus aircraft, for an A330, two A320 and an fourth undecided aircraft.