Nepal Airlines welcoming two Narrow Body Jet aircraft soon

Despite of the continuous controversies in the management, the National Flag Carrier, Nepal Airlines Corporation has invited tenders to bring in two narrow-body aircraft on wet lease guaranteeing a daily 7-hour flight.

Unable to secure a loan of 34 billion rupees to bring in four wide-body aircraft, the corporation has initiated the process for additional expenditure, stating that tendering for aircraft on wet lease will take place within a week.

According to sources within the corporation, the legal procedures and other provisions for the tender are being examined. After the completion of this process, the corporation is prepared to issue a global tender.

Before inviting tenders for leasing aircraft on wet lease, the corporation informally discussed with some companies. The source revealed that the tender document has been prepared based on the proposal of one such company.

According to sources, the tender will be offered at a rate of $3,000 per hour for wet leasing an aircraft in the wet lease market. At a daily rate of 7 hours, the monthly cost for leasing a single aircraft will be $630,000 (81 million Nepalese Rupees).

The tender document also includes a provision to lease an aircraft for a minimum of one year. Based on this, the corporation needs to earn at least 1 billion rupees in rent. The company leasing the pilot and cabin crew for the aircraft in the wet lease will be responsible for providing fuel and meals for passengers.

According to the Ministry of Culture, Tourism and Civil Aviation (MoCTA), a proposal was also requested from GoAir of India. After GoAir declared bankruptcy (flights suspended), the corporation had announced the suspension of flights last year. This company has 78 narrow-body aircraft of the A320 series.

The corporation also sought proposals from Japan Airlines (JAL). According to sources, a proposal has been received through a Nepali agent based in Japan. JAL also has aircraft of the A320 series from Airbus.

The current wet lease plan involves bringing in two wide-body and two narrow-body aircraft. One narrow-body aircraft has been grounded for more than two months. The corporation management has prepared to bring it into service after repairing and overhauling the aircraft. The Minister of MoCTA, Sudhan Kirati, is also involved in the preparation to lease two narrow-body aircraft to the minister at a daily business of 26 million Nepalese Rupees.

Even if compensation is received for not flying, the corporation management claims that business will still be viable. Due to some reasons, the aircraft must be paid a fee for 7 hours, even if it does not fly. The largest expense for the aircraft is in fuel, even if it does not fly.

In the beginning, the corporation employee mentioned that business would be conducted by providing a fee for the first month without giving compensation. Initially, we will not give a fee, he said, and the aircraft will not fly in the beginning. In the beginning, we will give money for one month, he said, that bank guarantees will be taken later.

The leased aircraft will be prepared for short-haul flights (short-haul sector) to destinations such as Malaysia and Qatar.