Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Airlines Corporation (NAC) has officially announced the auction of five older aircraft, including two MA-60 and three Y-12E models, currently grounded at Tribhuvan International Airport for the past three years.
The auctioned aircraft will be sold in their current condition, and the highest bidder will be the new owner. The process involves a secret sealed tender, with interested parties having until February 4 to submit their applications.
Originally, NAC possessed six aircraft, but one was damaged in an accident at Nepalgunj airport three years ago. The remaining five, consisting of two MA-60 and three Y12E, are now being put up for sale. These aircraft were grounded by NAC on July 30, 2020.
NAC, in collaboration with the government, has been incurring continuous losses from these Chinese-imported aircraft, which were initially acquired for domestic flights after 2071 BS.
Over the years, the airline has faced an annual average loss of Rs 380 million from operating six aircraft, including four purchased at a cost of Rs 4.5 billion and two obtained under subsidies. As a result, NAC has decided to discontinue the operation of these particular aircraft.
Acknowledging the financial impracticality of deriving profit from these aircraft, NAC initially proposed that the government take responsibility for them.
However, with the government showing no interest in managing the aircraft, attempts were made to lease them. As leasing generated no interest, the decision has been made to proceed with the sale of the grounded aircraft.
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