Kathmandu, December 21
Nepal Airlines Corporation is auctioning five old aircraft and has issued a tender notice.
The Corporation is auctioning two MA-60 and three Y-12 E aircraft which have been grounded for the past three years.
These old aircraft are going to be sold in their current condition and will be sold to the highest bidder.
The deadline for submitting the bid is February 4, 2024.
The Corporation’s domestic fleet comprised of six aircraft, with one having suffered damage in an accident at Nepalgunj airport three years ago. The remaining five aircraft, consisting of two MA 60 and three Y12E models, are being auctioned. These aircraft were grounded by the corporation on July 20, 2020.
The decision to sell these old aircraft comes after both NAC and the government have been consistently incurring losses since the planes were bought from China in 2014 to bolster the domestic fleet.
Since NAC bought the aircraft between April 2014 and February 2018, the Corporation has faced an annual average loss of Rs 380 million from the operation of the six aircraft. Out of the six, four aircraft were bought for Rs 4.5 billion and two were donated by China.
In light of the financial challenges and the inability to operate the aircraft at a profit, the Corporation has advised the government to assume responsibility for these aircraft.
The Corporation, however, has concluded that continuing its operation would only lead to further financial losses, and such a decision would be detrimental. Despite recommending government intervention, there has been a lack of interest from the government in managing these aircraft.
Subsequently, attempts were made to lease the old aircraft, but no interested parties have come forward. As a result, the Corporation has decided to proceed with auctioning the aircraft, as it feels this to be the most viable option given the circumstances.
