Nepal Airlines Corporation (NAC) has slashed the asking price for its Boeing 757 to $1.4 million after receiving no offers.

Last April, the carrier put one of its two Boeing 757s up for sale with a minimum price of $1.71 million. However, there were no takers even after publishing two consecutive auction notices. 

NAC then issued a notice in June for direct negotiations for the sale of the 757 named Karnali bearing registration number 9N-ACA. Still nobody came, and the airline was forced to extend the last date.

Eventually, five companies (US-based Avion Systems, Himalaya Aviation Consultant, TBI Group Nepal, BB Airways and Israel-based APS Airparts, Services and Supplies) and two individuals (Janardan Man Dangol and Anu Manandhar) showed interest to hold negotiations.

NAC Managing Director Sugat Ratna Kansakar said that they had lowered the negotiation price to $1.5 million during the first round of negotiations, but failed to attract any potential buyers. “We subsequently lowered the price to $1.4 million, and several companies have evinced interest in buying the aircraft.” Kansakar said they were holding talks with two-three companies. “We are close to concluding the negotiations, and it will probably happen after Dashain,” he said. Once the negotiation price is finalized, it will be tabled at the NAC board for its approval, he added. 

The Boeing 757 has been sitting outside the NAC hangar at Tribhuvan International Airport since April 2016 following the corporation’s move to phase out its Boeing fleet.

NAC decided to retire the jet after conducting a cost-benefit analysis. Based on an operational cost analysis, it does not make sense to fly the aircraft, it said. The Boeing 757 burns 4 tonnes of fuel per hour compared to 2.5 tonnes for new aircraft.

Each of NAC’s Boeings earns about Rs2 billion annually, and it costs almost the same in maintenance expenses, the carrier said. The move is also part of the national flag carrier’s plan to have an all-Airbus fleet for its international operations. The corporation plans to retire its second Boeing 757 by 2019.

As per the auction notice, the successful bidder will have to bear insurance charges after 90 days from the signature date of the binding contract. All charges for deregistration and applicable taxes on the sale shall be borne by the buyer, and the sale of aircraft does not include any spare parts.