Nepal Airlines (RA, Kathmandu) has paid USD2.1 million to Israel Aerospace Industries as it seeks to settle a dispute between it and the Tel Aviv-based MRO provider over the repair and lease of engines for the carrier's A320-200s. The payments follow the November 20 appointment of new Nepal Airlines Corporation general manager Amritman Shrestha, who told the company's executive committee that the airline had already initiated the process of reinstalling the engine that was removed from A320 9N-AKX (msn 6555) when the aircraft was ferried to Israel for maintenance in January 2024, and replaced it with a leased engine. IAI subsequently ordered Nepal Airlines to ground the aircraft after the carrier failed to pay outstanding rent of USD2.9 million. NAC has also reportedly approved payment of USD6.7 million to repair an additional engine.