Nepal Airlines wants to sell its last Boeing 757, but receives only two takers
When the aircraft flies off into the sunset, it will mark the end of the Boeing era in Nepal that began nearly five decades ago. A view of the Boeing 757, named Gandaki and bearing the registration number 9N-ACB. Courtesy: Planespotters.net
Nepal Airlines Corporation has received only two bids for its last Boeing 757 that has been put up for sale. The deadline for submitting the bids ended Sunday.
When the aircraft flies off into the sunset, it will mark the end of the Boeing era in Nepal that began nearly five decades ago.
The state-owned carrier has also put up the plane’s spare parts for sale as well as it will now have an all-Airbus fleet.
The national flag carrier had set the minimum sale price at $7.8 million for the 31-year-old Boeing named Gandaki with registration number 9N-ACB and its spare parts.
The jet is valued at $5.4 million out of the total sale price, the carrier said.
Ganesh Bahadur Chand, spokesperson of Nepal Airlines, said only two bidders had shown interest in buying the plane. The corporation had put the jet up for auction on June 26.
As per the financial by-law of Nepal Airlines, it should have at least three bidders in the competitive bidding process. “The Public Procurement Act allows accepting single tender with some prescribed procedure.”
“However, we are consulting with our lawyers whether the two bidders meet the requirement for competitive bidding,” Chand said, adding that based on the decision of the legal team, the management would decide whether to open the bid documents or start the retender process. “It will take a few days to decide on the issue.”
In April 2017, Nepal Airlines had put its first Boeing 757 named Karnali and bearing registration number 9N-ACA up for sale with a minimum price of $1.71 million. However, there were no takers even after publishing two consecutive auction notices.
The carrier then issued a notice in June 2017 for direct negotiations for the sale of the 757. Still, nobody came. When the carrier lowered the price to $1.46 million, several companies approached Nepal Airlines to hold negotiations.
In the end, the carrier sold its first 757 named Karnali to Bhawan Bhatta, managing director of BB Airways, for $1.46 million in December 2017.
The 9N-ACB joined the fleet of the then Royal Nepal Airlines in September 1988. This special Combi model is capable of seating passengers and carrying two pallets of cargo. According to Nepal Airlines, the Gandaki’s frame is the only pure 757 Combi built by Boeing.
The aircraft has been sitting at Tribhuvan International Airport since February-end. The national flag carrier had planned to put up its last Boeing for auction immediately after the arrival of the Airbus A330s last year, but it dropped the plan following allegations of financial irregularities in the purchase of the wide-body jets.
The Nepal Airlines board also hesitated to make a decision to allow the management to sell its Boeing after the allegation. Nepal Airlines has completed a full appraisal of the Boeing 757 including spare parts and tools.
The 757 holds 190 passengers. It is a mid-sized, narrow-body twin-engine jet built by Boeing Commercial Airplanes. It was in production from 1981 to 2004.
Nepal Airlines decided to sell off its two 757s as it was no longer profitable to fly them due to their high maintenance costs compared to the revenue they bring in.
Sangam Prasain is Business Editor at The Kathmandu Post, covering tourism, agriculture, mountaineering, aviation, infrastructure and other economic affairs. He joined The Kathmandu Post in October 2009.
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