Nepal Airlines plans to buy six new Viking Air DHC6-400s for expansion into remote areas.
Talks with Viking may include a buyback deal, allowing the carrier to trade in its three vintage Twin Otters.
Once the board approves the deal, it will need to be signed off by the government sometime during the next few months. If approved, the aircraft would be delivered by 4Q 2018.
Funding will come via the Employees Provident Fund, who agreed to finance the purchase, costing Rs4 billion. It is still being decided whether the aircraft will be outright purchased or acquired via lease purchase.