Dubbed “White Elephant,” Nepal Airlines Corporation, the national flag carrier of Nepal, has called for a bid to auction five Chinese aircraft that have remained off the air for three years.
Issuing a notice Thursday morning, the Nepal Airlines Corporation called on the bidders on the basis of “As is Where is Basis” to sell it’s two MA-60 and three Y-12 E aircraft.
“Nepal Airlines Corporation (NAC) invites all interested companies and individuals to submit their sealed tender document for the Auction Sale of Two MA-60 and Y-12 E Aircraft on as is where is basis,” states the auction notice from the flag carrier published on Thursday.
According to the notice, the bidders have to send their sealed bid by February 4, 2024 (13:00 hrs- NST).
Imported with high hopes to fly to remote and unserved sectors, three 17-seater Y12 E and two 56-seater MA-60 aircraft have been gathering rust in the parking bay of Tribhuwan International Airport. One more that crashed in Nepalgunj has been deemed unflyable.
These aircraft have been grounded since July 30, 2020. Those remaining at the hangar of the airport in Kathmandu have been prepared for sale, as it has been gathering rust and dust along with piling debts for the already loss-bearing national flag carrier.
In November 2012, the NAC signed a commercial agreement with the Aviation Industry Corporation of China (AVIC), a Chinese government undertaking to procure aircraft.
China at the time had provided the grant and concessional loan assistance of 408 million Chinese yuan, equivalent to Nrs. 6.67 Billion.
Out of the total aid money, a grant worth 180 million yuan (Rs 2.94 billion) went to pay for one MA60 and one Y12e aircraft. The other aircraft were bought for 228 million yuan (Rs3.72 billion) with a soft loan provided by China’s EXIM Bank.