Single bid application falls for NAC’s Boeing auction

17th Jun, 2017 | Tourism Mail Crew

KATHMANDU, June 17 : The auction sale by Nepal’s national carrier Nepal Airlines has attracted single bidder. The extended deadline for submitting tenders ended Monday.

The minimum sale price for the 30-year-old aircraft named Karnali and bearing registration number 9N-ACA was set at $1.71 million.

Rabindra Shrestha, spokesperson for NAC, said that they were yet to open the tender submitted by the foreign bidder. “We will assess the proposal, and it will take five to six days to complete the task.”

He added that they would issue another deadline if the bidder failed to meet the terms, like the offer price, stipulated in the auction notice. “If it meets all the requirements, it will be an eligible bidder.” The single bid shows that there is little interest in the airplane, he said. The corporation had put the jet up for auction on April 10.

The deadline was extended on May 29.

The aircraft has been sitting outside the NAC hangar at Tribhuvan International Airport since April 2016 following the corporation’s policy to phase out its Boeing fleet. 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.

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.

The 9N-ACA arrived in Nepal in 1987 and flew on long-haul routes, displaying the national flag at world airports. The 757 holds 190 passengers. The Boeing 757 is a mid-sized, narrow body twin engine jet built by Boeing Commercial Airplanes. It debuted in the late 1980s and was in production until 2004.

As per the auction notice, the successful bidder will have to bear insurance charges after 90 days from the signature date of the binding contract. All charges for deregistration and applicable taxes on the sale shall be borne by the buyer, and the sale of aircraft does not include any spare parts.