KATHMANDU, Nepal- Agni Air, which has been offline for a year, has start flying after its management was transferred to another airline company.
The airline that has been offline since mid-November 2012 crippled by massive debts began flights beginning Wednesday in the name of Simrik Airlines after the latter has leased it’s entire fleet of five aircraft for five years.
Simrik began commercial operations with one of the aircraft on the Lukla sector on Wednesday after conducting a test flight.
Simrik, Agni and a consortium of banks with investments in Agni signed a tripartite pact under which Simrik will operate the three Jetstream 41s and two Dorniers bearing its livery.
The Agni’s woes began when the bottom fell out of the real estate market, and its key promoter Sudhir Basnet defaulted huge loans taken from different banks and financial institutions.
A consortium consisting of Grand Bank, Sunrise Bank and International Leasing and Finance Company have lent Rs 650 million to the troubled airline.
According to the Simrik Airline, it will repay the loans owed by Agni on a regular basis as per the agreement.