National flag carrier Nepal Airlines Corporation (NAC) has failed to directly negotiate with the interested bidders to auction its Boeing 757 ‘9N-ACA’.
Mr. Sugat Ratna Kansakar, Managing Director for NAC stated that the Corporation had received seven bids from Companies/Parties/Persons for selling its Boeing 757 ‘9N-ACA’ aircraft that was put up for the Further Negotiation which ended on 27th of July 2017.
The flag carrier had set 1.71 million USD price for 9N-ACA “Karnali” however, the corporation had planned to sell its 30 years old Boeing with the minimum sale price of 1.5 million USD but still the bidders denied for buying the aircraft at that amount.
Mr. Kansakar also reported that the NAC will conduct a board meeting on next week to address the possible approaches to auction the vintage Boeing 757.
Nepal Airlines Corporation induced Boeing 757 ‘9N-ACA’ in 1987 and have been serving on the long-haul routes of Nepal. The Boeing 757 is a mid-sized, narrow body twin engine jet built by Boeing Commercial Airplanes and can accommodate 190 passengers on-board. It debuted in the late 1980s and was in production until 2004.
The aircraft is grounded on the hangar facility of NAC at Tribhuvan International Airport since April 2016 following the corporation’s policy to phase it out. NAC decided to retire the aircraft after conducting a cost-benefit analysis. Based on the operational cost analysis, it does not make sense to fly the aircraft, it said. The Boeing 757 burns 4 tonnes of fuel per hour compared to 2.5 tonnes for new aircraft.
As it is no longer profitable to fly them due to their high maintenance costs compared to the revenue they bring in. Each of NAC’s Boeings earns about Rs2 billion annually, and it costs the carrier almost the same in maintenance expenses, according to the carrier.
The move is also part of the national flag carrier’s plan to have an all-Airbus fleet for its international operations. The corporation plans to retire its second Boeing 757 by 2019.
