“Karnali” Boeing 757 seem old to attract bidder

“Karnali” Boeing 757 seem old to attract bidder

May 28, 2017-Kathmandu

9N-ACA “Karnali” Nepal Airlines Boeing 757 aircraft has failed to attract even a single bidder. Officials from the flag carrier had officially conducted an auction for selling the Boeing aircraft on April 10 this year. The airline was dedicated to attracting interested bidders for selling the three-decade-old aircraft but has hardly attracted any so far.

The deadline for drafting the proposal was already ended on May 24 but NAC hasn’t received a single bid so far and now has decided to extend the date.

Currently, Nepal Airlines own two Boeing 757 aircraft “Karnali & Gandaki” one out of which “Gandaki” was in operation until May 18 but its landing gear got damaged during the landing in Doha Airport and is currently grounded in Doha. Similarly, the other “Karnali” has been grounded since October 27, 2016, due to engine failure and was scheduled to be sold via auction.

Though the flag carrier set 1.71 million USD as the minimum sale price for 9N-ACA “Karnali” but still could not receive any bid. Sailesh Kansakar, an NAC representative, reported that so far none are interested in purchasing the aircraft and will now extend the deadline. But the price will still remain the same as it is the lowest to bid, he added.

According to the auction notice, the entire insurance charges after 90 days from the signature date of the bidding will be covered by the bidder including the entire charges for deregistration and applicable taxes on the sale. Also, the sale of aircraft does not include any spare parts.

Analyzing the current condition NAC can be compelled to reduce the price if they still don’t receive a further proposal by next deadline as the aircraft has been lying outside the hangar since 2016 following phasing out of Boeing policy made by the airline.

Cost-benefits analysis has forced NAC to shut the Boeing aircraft as each of the aircraft only earns 2billion of Nepali currency annually and also cost the same in return for the annual maintenance resulting zero in return from the service. Similarly, each of the aircraft burns 4 tonnes fuel each hour which are only 2.5 tonnes burned by a new aircraft. NAC has also decided to conclude its second Boeing 757 operation by 2019.

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