Non-operational Nepali private carrier BB Airways has requested the Nepal Airlines Corporation (NAC) to grant them an extra time to remove the 30-year-old Boeing 757 from the corporation hangar, two months after the aircraft was acquired.

Aircraft owners have an ongoing burden of ownership: there are parking fee, insurance and other types of fees. According to NAC, the monthly accumulated fee could hover to Rs3 million.

The carrier, which has applied for international flying licence at the Tourism Ministry, has requested for the extension after NAC wrote on February 18 to remove the aircraft from its hangar at Tribhuvan International Airport. The carrier was given February 27 deadline to remove the aircraft.

The Boeing 757, named Karnali with the registration 9N-ACA, was sold to Bhawan Bhatta, Managing Director of BB Airways, for $1.46 million in December last year. The carrier, promoted by Bhatta, currently the president of the Non-Resident Nepali Association (NRNA), had launched services to Kuala Lumpur in October 2012, but ceased operations after a few months.

“Although, we have been facing congestion at the hangar to accommodate our newly acquired two Chinese aircraft, we have decided to grant them an extra time,” said Rabindra Shrestha, spokesperson of NAC. “However, the formal decision is yet to be made.”

 “As per the agreement, NAC will bear all insurance and parking cost for 45 days of signing the agreement,” said Shreshta. “The carrier has agreed to pay all the costs after that.” Shrestha said they are not sure on how many days the carrier would park the aircraft at the hangar.

The plan of BB Airways to take to the skies again after purchasing the Boeing 757 is “unlikely” to materialise any time soon.

The carrier had recently applied to the Tourism and Civil Aviation Ministry to renew its license to resume international operations. Following the request, the ministry has sought the views of the Civil Aviation Authority of Nepal (Caan), the regulator, on the proposal.

The issuance of license enables the airline to initiate the process to obtain the air operator’s certificate (AOC) from the Caan. The AOC, in turn, allows airline companies to use aircraft for commercial purpose.

It has initiated process to take to the skies again after buying the 757 in an auction. The plane needs a complete overhaul including replacement of its two engines. The plane will not be able to fly abroad. After obtaining the license, the carrier has to get “no-objection certificate” from the Caan, a mandatory rule that permits airlines to purchase or lease aircraft.

However, given the number of procedures and stringent measures to get the AOC, it will take at least one-and-a-half years to get the nod from the aviation regulator to fly the aircraft if the process is fast-tracked, said sources at the Caan. Until then, the Boeing 757 will remain at the NAC’s hangar.

The aircraft cannot even fly out of Nepal under NAC registration now, said the sources. Recently, NAC had requested the Caan to de-register the aircraft and transfer the ownership to BB Airways. Yet another legal complexity has arisen. “There is no provision for transferring ownership of the aircraft to the company that doesn’t have the flying license.”