NAC auctions grounded Chinese aircraft to cut losses

Published On: December 21, 2023 11:45 AM NPT By: Republica  | @RepublicaNepal


KATHMANDU, Dec 21: Nepal Airlines Corporation (NAC) has issued a notice for the auction of five old aircraft. The airline is set to sell two MA-60 and three Y-12E aircraft. These Chinese aircraft have been grounded at the Tribhuvan International Airport for three years.

The auctioned aircraft will be sold in their current condition, and the highest bidder will acquire the planes. A secret sealed tender for the auction has been announced today, with an application deadline until February 4.

Of the original six aircraft in NAC's possession, one was damaged in an accident at Nepalgunj airport three years ago. The remaining five aircraft (two MA-60 and three Y12E) are now being put up for sale. The NAC grounded these aircraft on July 30, 2020.

NAC and the government have faced continual losses from these aircraft, which were imported from China for domestic flights after 2071 BS. Since that time, the airline has experienced an average annual 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. Consequently, the NAC has decided to cease the operation of these aircraft.

Recognizing the inability to generate profit from these aircraft under any circumstances, the NAC recommended that the government assume responsibility for them. However, with the government showing no interest in managing the aircraft, attempts were made to lease them. Since no interested parties emerged for leasing, the decision has been made to proceed with their sale.


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