NAC bearing hefty loss as Airbus remains grounded since a month


Nepal Airlines Corporation (NAC) is expected to encounter hefty loss following the uncertainty of maintenance and repair of Airbus A320-MSN 6445 acquiring Nepalese registration ‘9N-AKW’ (SAGARMATHA) which is grounded since 25th December at Indira Gandhi International airport, Delhi following a technical glitch on its Engine.

According to the Source, the corporation has been bearing a loss of around Rs100 million monthly incomes. The figure has been computed on the basis of the estimated annual income of Rs1.2 billion for each of NAC’s aircraft.

Distinct from the loss in the income, the corporation is facing to pay a huge amount for the airport for landing and parking charges cost of repairing the damaged engine and the others accessories for the replacement of engine.

Previously, NAC had received RFP from International Aero Engines (IAE), USA and MTU Aero Engines, Germany. Both the companies have presented lease fare in accordance with per flight conducted along with hourly basis for the engine lease.

The maintenance team and officials from NAC did not show any concern towards bringing the aircraft into operation which shows the sheer negligence of the management due to which the aircraft is still grounded at Delhi resulting international flight delays and cancellations.

According to Managing Director for NAC, Sugat Katna Kansakar, they had found a replacement engine for a temporary period and will be leasing the engine soon. The engine currently is on London and is to be delivered to Delhi so it is expected few weeks for the grounded aircraft to resume its normal operation after the maintenance. The Engine could probably cost around $150,000 per month for leasing, added Kansakar.

However, NAC is not sure when the damaged engine will be repaired. “It may take at least three months,” said Kansakar.

Meanwhile, the national flag carrier has been preparing to invite bids for a ‘power by the hour’ programme that will allow it to accurately forecast cost and free it from purchasing stocks of engines and accessories.

“The ‘power by the hour’ is a new concept. It’s like insurance that protects the lessee from unexpected costs of premature engine failure,” said Kansakar, adding that NAC would pay for the service on an installment basis.

The facility was introduced by engine makers Rolls-Royce. Other aircraft engine manufacturers such as General Electric and Pratt & Whitney offer similar programmes. The family of A320 engines is manufactured by International Aero Engines (IAE). NAC’s brand new jet had arrived at Tribhuvan International Airport in February 2015.

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