Nepal Airlines (RA, Kathmandu) is again trying to sell its redundant Chinese-manufactured aircraft, with the carrier issuing a tender notice for the auction of two MA-60s and three Y12s on December 21, 2023.

The five aircraft are available on an as-is-where-is basis. Nepal Airline has previously attempted to lease or sell these aircraft several times, most recently earlier this year when the Chinese Embassy in Kathmandu reportedly leaned on the airline to not proceed with the sale or alternatively, not to discount the price, lest it send the wrong message about the planes. In October, the US-based Aviation Asset Management Inc. handed in a report that suggested the five aircraft be sold for their scrap value.

The Nepalese government acquired the planes on behalf of the carrier early last decade but by 2020 the airline had retired them, deeming them unreliable, expensive to operate, and unsuitable for local flying conditions. Nepal Airlines has incurred a reported NPR2 billion rupees (USD15 million) in losses flying and storing the aircraft.

The two MA60s are 9N-AKQ (msn 1007) and 9N-AKR (msn 1008). 9N-AKQ was built in December 2013 and has completed 3,316 cycles. 9N-AKR was built in November 2016 and has flown 3,415 cycles. The three Y12s are 9N-AKS (msn 026), 9N-AKT (msn 027), and 9N-AKV (msn 029). 9N-AKS was manufactured in June 2014 and has completed 2,333 cycles. 9N-AKT was built in March 2015 and has flown 1,424 cycles, and 9N-AKV was built in September 2015 and has completed 1,386 cycles. All five aircraft are being sold with their engines intact. The initial tender documentation does not comment on the planes' airworthiness. However, each aircraft has a floor price, and on-site inspections are available via prior arrangement.

The initial tender documentation says that a letter of intent (LOI) will be issued against the selected bidder after obtaining approval from the Nepal Airlines Corporation board. The bidder must accept the LOI within 15 days from the date of issuance. The successful bidder will be asked to sign a contract with the airline within 60 days after acceptance of the LOI. If the selected bidder fails to sign the contract within the stipulated time, the airline will be entitled to cancel the purchase offer. The winning bidder must deposit the full amount due within 30 days of signing the contract and remove the aircraft from Kathmandu's Tribhuvan International Airport within 180 days.

The full set of tender documentation is currently available at the airline's corporate office. Bids close on February 4, 2024, at 1300L (0715Z) and must be accompanied by a bank guarantee for 10% of the bid amount. The bank guarantee must be valid for 90 days. Unsuccessful bidders will have their bank guarantees returned.