Nepal Airlines is selling Chinese planes bought for a whopping 6.66 billion Nepalese rupees (US$50 million) at a “junkyard price.” According to top officials quoted by the Nepalese news outlet Kathmandu Post, the grounded planes “have been more trouble than they are worth.” Between 2014 and 2018, Nepal purchased six planes from China. One plane has crashed since then. The remaining five aircraft, including two 56-seater MA60s and three 17-seater Y12es, are grounded. The Chinese-made airplanes are prone to malfunctions. Operating them proved prohibitively expensive for Nepal Airlines due to hefty maintenance costs.
The Nepal Airlines board is unhappy with the concept of selling expensive jets at such a low price
In addition, a continual shortage of appropriate pilots and unreliability as a result of the crashing catastrophe prompted officials to dispose of the planes as quickly as feasible. For at least three years, the planes have been grounded. The state-owned carrier decided enough was enough and placed all of them in deep storage in July 2020. The airline has now listed the plane for sale for 220 million Nepalese rupees (US$1.65 million). According to a highly placed source at Nepal Airlines Corporation cited by Kathmandu Post, this amount was decided by an independent international assessor. The overstressed corporation also paid $20,000 for the appraisal assessment. “That is scrap value,” the official stated. The decision to sell the planes off was taken after a proposal to lease them out fell flat.
According to a Tourism Ministry official reported by Kathmandu Post, the Nepal Airlines board is unhappy with the concept of selling expensive jets at such a low price. “Now everyone is in a dilemma, including the Nepal Airlines board, which is reluctant to consent to sell the planes at the throwaway price,” stated a government official. However, Nepal Airlines maintains that the planes cannot be flown and that selling them is the only choice. It should be remembered that planes can only be sold if the Nepal Airlines board of directors gives its consent. “The report sent a month ago has not been approved by the Nepal Airlines board. Without their approval, the process to sell the planes cannot move forward,” said the official at the Tourism Ministry.