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NAC incurring over Rs 10 billion from Chinese aircrafts  

Metakhabar by Metakhabar
December 28, 2023
in Auto, Featured-news, News, Society
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NAC incurring over Rs 10 billion from Chinese aircrafts  
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Kathmandu, Dec 28: Nepal Airlines Corporation (NAC), the national flag carrier, will suffer a loss of more than Rs 3.5 billion on five aircrafts purchased from China as the aircrafts have been grounded at the Tribhuvan International Airport for years. So much so, they are going to be auctioned causing a heavy loss.

On December 21, 2023, issuing a notice, the NAC called for international bids for the sale of two MA-60 and three Y-12E Chinese airplanes. Since 2014, the NAC brought five Chinese aircrafts at different dates, but could not operate any of them properly due to various reasons, it has been said.

The company purchased two MA-60 and three Y-12E ships, two with subsidies and three at affordable prices. Over Rs 6.6 billion has been spent for the purchase of the aircrafts. However, the Chinese ship did not fly well for 6 years before being grounded. Since the fiscal year 2020/21, the Corporation has incurred a loss of more than Rs 10 billion due to the ships being grounded continuously.

Aircrafts which were purchased for over Rs 6.6 billion being auctioned for Rs 2.6 billion

According to the bidding notice, five Chinese planes will be auctioned for around Rs 2.6 billion. However, the ships were purchased for over Rs 6.6 billion.

According to authorities, so far, around Rs 10 billion has been spent on operation, management and maintenance expenses. However, the NAC has put the ships on sale at a minimum price of a total of 19,577,784 USD (about Rs 2.6 billion), incurring a big loss.

According to the tender notice, the two MA-60 and three Y-12E ships were produced by the Chinese company Avic Xi’an Aircraft Industry Group Company Ltd. These aircrafts have flown a total of 24,174 hours only.

Two MA-60, N-AKQ and N-AKR aircrafts have flown 2,996 hours 32 minutes and 3079 hours 7 minutes respectively while four Y-12E aircrafts have flown the total 18,098 hours.

Similarly, the auction price of the MA-60 aircraft is set at 8,225,501 USD (around Rs 1.8 billion) while the auction price of another MA-60 aircraft ship has been fixed at 4,922,235 USD (around Rs 649 million).

Also, the minimum auction price of Y-12E, 9-N-AKV is set at 2,412,671 USD (about Rs 318 million) while Y-12E, 9N-AKT is fixed at 2,358,860 USD (around Rs 311 million). The price of Y-12E 9N-AKS is set at 1,658,517 USD (around 218 million).

Tags: Avic Xi'an Aircraft Industry Group Company Ltd.Chinese aircraftsNAC incurs over Rs 10 billion from Chinese aircraftsNepal Airlines Corporation
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August 31, 2025
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