Karnali Air has pulled out of the Necon Air deal following the failure to reach an agreement with the grounded airline to revive its operation, a report said Tuesday.

“We could not strike a deal with Necon Air since the airline failed to meet the criteria and could not sort out its problems,” The Himalayan Times quoted Narayan Singh Pun, Chairman of Karnali Air, as saying.

“The negotiations with Pun could not succeed due to failure of both the parties to agree on certain terms and conditions,” said Dip Mani Rajbhandari, Chairman of Necon Air.

Published reports said former Pun was keen to purchase the nearly bankrupted Necon Air, Nepal’s first private airline. nepalnews.com mr Sept 23