Neglected Boeing 757 exposes Nepal Airlines’ mismanagement
Summary
Nepal Airlines' grounded Boeing 757 has suffered extensive neglect and mounting costs on parking and insurance over seven years, reflecting mismanagement and missed sale opportunities amid rising liabilities for newly acquired Airbus planes.
Key Points
- Nepal Airlines Corporation has left its Boeing 757-200 parked and neglected for over seven years at Tribhuvan International Airport, incurring significant parking and insurance costs.
- The aircraft's technical condition and market value have deteriorated due to prolonged grounding and lack of maintenance, making restoration or sale difficult and costly.
- The corporation took large loans to purchase Airbus aircraft and has been paying heavy installments while failing to monetize the old Boeing aircraft timely.
- Attempts to auction the aircraft twice in 2019 and negotiations with a US company failed, partly due to the COVID-19 pandemic and risk concerns from the manufacturer about restoring the plane to service.
