Nepal Airlines Struggles to Sell or Lease Parked Aircraft
Nepal Airlines (RA) is facing challenges in disposing of five parked Chinese-manufactured aircraft at Kathmandu Airport. The two MA-60s and three Y12s have been unused since 2020 and are deteriorating due to lack of use. Despite efforts to lease or sell the aircraft, the airline has been unsuccessful. A spokesperson for Nepal Airlines stated that they have sought guidance from the Ministry of Civil Aviation, but no solution has been proposed.
The aircraft were parked due to high operating costs, and the airline continues to pay parking fees at Tribhuvan International Airport. Two attempts to lease the aircraft in 2022 were unsuccessful, and in 2023, a US company valued them at NPR220 million (USD1.6 million), but Nepal Airlines set a floor price of USD19.6 million, which led to failed sales.
The aircraft were supplied by the Chinese government through the Aviation Industry Corporation of China (AVIC), with soft loans and grants totaling NPR6.66 billion (USD48 million). However, the Chinese government has since advised Nepal not to sell the aircraft, fearing it may send a negative message.
Despite the failed sales, Nepal Airlines faces significant debt, with approximately NPR50 billion (USD360 million) owed to creditors. Additionally, the Civil Aviation Authority of Nepal (CAAN) has named several non-operational airlines, including Nepal Airlines, warning them to settle their debts or face future restrictions.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com