Nepal Airlines Mulls Auction Of Two Chinese MA-60 & Three Y-12 E Aircraft aka 'White Elephant' .

After failing to lease out or sell them, Kathmandu based Nepal Airlines Corporation (NAC) has invited tenders from eligible bidders for Auction Sale of Two MA 60 & Three Y-12 E Aircraft on "As Is Where Is Basis" under International Competitive Bidding procedures.

Eight years after acquiring a batch of Chinese planes it had hoped to fly on underserved mountain routes, Nepal Airlines finally decided that planes need to be disposed off, after the direction of the Ministry of Finance of Nepal. These aircraft have also been dubbed as “White Elephant” due to the high cost of maintenance.

Flag bearer Nepal Airlines says,

The sealed tender document must reach at Corporate Department, Nepal Airlines Corporation, Kantipath, Kathmandu, Nepal within 04 February 2024 (13:00 hrs Nepalese standard time). 

The sealed tender document received after last date and time of submission shall not be accepted.

As per the tender release document, tenders shall be opened in the presence of Bidders' representatives who choose to attend at 15:00 Hrs (local time) on 04 February 2024 at 4th Floor, NAC premises, Kantipath, Kathmandu, Nepal.

• Nepal Airlines Corporation mulls acquiring three aircraft to replace the role of non-operational Chinese Planes.
• The national carrier now auctions the aircraft purchased from China, the models are Xian MA60 and the Harbin Y-12E.
•  Cost of five Chinese aircraft is estimated to be 75 million € , but Nepal sells them for 2.5 million €.
• These planes have caused complications, with frequent mechanical problems and a lack of trained pilots.

In 2012, the corporation had made a purchase agreement of four Y12E and two MA60 aircraft from China. One of these planes was non-operation due to accident, while the remaining five were sitting idle in the parking lot of Tribhuvan International Airport.

On the floated bidding, NAC also said that it provides no warranties expressed or implied as to the condition of the specified Equipment or any part thereof, or their suitability for any intended use.

While highest value of the MA-60 type Aircraft (9N-AKR) has been recorded by NAC as USD 8,225,501.00 (Eight Million Two Hundred Twenty Five Thousand Five Hundred And One), highest value of Y-12 E type Aircraft (9N-AKV) has been printed as USD 2,412,671.00 (Two Million Four Hundred Twelve Thousand Six Hundred And Seventy One) for the purpose of bidding.

NAC hwever says that it reserves all rights to accept or reject all or any tender document received without giving any reason whatsoever.

In another development, the national flag carrier stated that a call for tenders has been made for the procurement of three planes for operating flights in remote areas. NAC is in the process of buying three Twin Otter planes for this purpose.

Display Picture : Susheel Bhattarai