The Nepal Airlines Corporation (NAC) has begun the selling of five Chinese aircraft . The planes have been grounded at the countrys airport for three years .
Kathmandu, December 6, 2018 : The Nepal Airlines Corporation (NAC), Nepal's national flag carrier, has begun the selling of five Chinese aircraft that have been grounded at the country's airport for three years.In the parking lot of Tribhuwan International Airport, three 17-seater Y12e and two 56-seater MA60 aircraft were imported in the hopes of serving remote and underserved areas.The national flag carrier has called for bids for the price of the aircraft to be determined after a complete analysis.After that, the process of selling these aircraft will begin by calling a global tender.Since no one showed interest, we've decided to sell these aircraft that have been grounded since July 30, 2020, according to NAC spokesperson Archana Khadka.The NAC and the Aviation Industry Corporation of China (AVIC) had signed a commercial deal earlier in November, which was a Chinese Government contract to procure the aircrafts.At the time, China had provided the grant and concessional loan support of 408 million Chinese Yuan, equal to NRs.6.67 billion.. A grant worth 180 million yuan (NRs2.94 billion) was given to one MA60 and one Y12e plane out of the total aid funding. The NAC board decided to discontinue service of aircrafts in July 2020 and has since been based at Tribhuwan International Airport.The NAC also handed the aircrafts to the government, which was denied.The national flag carrier offered to rent it later, but it refused to do so.Despite the fact that the planes are out of service and unfit to fly, the Ministry of Finance has started paying back the loan interest. Two installments have already been paid, including interest on the loans offered by EXIM Bank, which have been extended to a seven-year grace period.As part of the November 2012 deal, China had offered Nepal Airlines a seven-year grace period, during which time they would not have to pay interest and installment payments.The loan will be paid back in 20 years or until March 21, 2034.The planes have completed the seven-year grace period privilege. The estimated losses on five Chinese planes have already surpassed NRs2 billion.These planes' total accumulated losses were NRs1.9 billion before they were grounded.