Nepal Airlines Seeks Wet-Lease for International Expansion with Two Narrowbody Jets

Nepal Airlines, the national carrier of Nepal based in Kathmandu, is actively seeking to enhance its international service portfolio through the wet lease of two narrowbody aircraft. Scheduled to commence in July 2024, this initiative underscores the airline’s strategic efforts to bolster its operational capabilities and expand its reach to key international destinations. The announcement, as detailed in a recent Request for Proposals (RFP), follows insights shared by Executive Chairman Ubaraj Adhikari, highlighting the airline’s commitment to upgrading its service offerings and meeting the rising demand for air travel.

The airline’s RFP is open to various aircraft types and ages, provided they can accommodate at least 150 passengers in an economy class configuration and are equipped with facilities for serving hot meals. This broad criterion aims to attract a wide array of potential bidders, ensuring flexibility and efficiency in meeting the airline’s operational needs. The wet-leased aircraft will be stationed in Kathmandu, embarking on international flights to several prominent destinations including Kuala Lumpur, Bangalore, Hong Kong, Bangkok, and Doha, with frequencies ranging from daily to thrice weekly.

Nepal Airlines guarantees a minimum utilization of 310 block hours per month for the leased aircraft, projecting an actual average monthly utilization of nearly 364 hours based on the anticipated schedule. This guarantee not only ensures a consistent operational schedule but also offers prospective bidders a clear expectation of the engagement’s scope and scale.

While the airline has refrained from disclosing its budget for the wet lease, local media reports suggest an estimated cost of around USD3,000 per block hour. Prior to issuing the RFP, Nepal Airlines engaged in preliminary discussions with potential operators such as GoAir and JAL – Japan Airlines, indicating a proactive approach to identifying suitable partners for this venture.

Eligibility for the tender is strictly defined, with bids invited exclusively from carriers possessing a valid Air Operator Certificate (AOC) recognized by either the FAA or the EASA, or those holding Third Country Operator status in the European Union. Additionally, bidders are required to have prior experience in executing at least one scheduled passenger ACMI contract, ensuring a level of expertise and reliability in fulfilling the contract’s demands.

The tender process is set to conclude on March 22, 2024, with the possibility of extending the one-year contract, highlighting Nepal Airlines’ openness to forging long-term partnerships. This strategic move is part of the airline’s broader objective to not only enhance its international flight operations but also to modernize its fleet, which currently includes two A320-200s, two A330-200s, and two DHC-6-300s. Furthermore, Nepal Airlines is in the process of negotiating the acquisition of three additional STOL aircraft, signaling its commitment to continuous improvement and expansion in both domestic and international markets.