Nepal Airlines Corporation (NAC)’s Airbus A320 has headed to Singapore from New Delhi to get an engine replacement on 8th February 2018.
- The aircraft named Sagarmatha, had been sitting at Indira Gandhi International Airport since December 25 due to the engine being damaged.
- NAC has leased a second-hand engine that is expected to arrive in Singapore on February 14. The aircraft is expected to be flown back to Nepal by 18th February.
- The leasing cost of the engine could cost $150,000 per month.
Why it matters:
- On the basis of the estimated annual income of Rs. 1.2 billion for each of NAC’s aircraft, there has been a loss of Rs. 100 million monthly. The cost of landing and parking charges, repairing of the damaged engine and the rental for a replacement engine increases NAC’s loss.
- The national flag carrier has been preparing to invite bids for a ‘power by the hour’ programme that will allow it to accurately forecast costs and free it from purchasing stocks of engines and accessories. NAC would have to pay for the service on an installment basis.
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