Nepal Airlines Corporation (NAC) is gearing up to lease two Airbus narrow-body aircraft. The decision follows a comprehensive study conducted by a sub-committee, led by Kishore Pradhan, a member of the NAC, with a focus on introducing wet leases (aircraft rental with crew) to swiftly broaden flight operations.
The sub-committee, having completed its study, is set to submit a proposal for chartering the aircraft to the upcoming board of directors meeting. Kishore Pradhan, the committee coordinator, stated, “The NAC promptly crafted a report suggesting that two narrow-body aircraft additions could open up profitable flight routes.”
Pradhan added that once approved by the board, the process of acquiring the necessary narrow-body aircraft through wet lease arrangements would be expedited. The report highlighted the lack of immediate resources for outright aircraft purchase, prompting the recommendation to opt for wet leasing for speed and convenience.
According to the committee’s suggestion, the NAC could secure and operate two narrow-body aircraft within four months of board approval, targeting current profitable destinations like Malaysia, Delhi, Saudi Arabia, and the United Arab Emirates (UAE). The airline’s wide-body fleet is proposed to focus on long-haul destinations such as Japan and Australia.
NAC estimates that wet leasing a vessel would incur a cost of at least 3,000 US dollars per hour, asserting that this expense could be offset by generating profits at the suggested rate. The corporation reported that the existing narrow-body aircraft, with a 158-seat capacity, currently generates an annual revenue of Rs 7 billion, exceeding its operating cost of Rs 6 billion.
The NAC claims an annual profit of Rs 950 million from the operation of two narrow-body aircraft, and it anticipates earning over Rs 9 billion from these aircraft in the fiscal year 2023/24. The airline plans to allocate about Rs 8 billion of this income to cover flight-related expenses, anticipating an annual profit of more than Rs 1.3 billion solely from narrow-body operations.
Despite losses incurred from domestic flights, amounting to Rs 500 million in the last fiscal year and Rs 550 million in the preceding year, NAC remains optimistic about bolstering profits through international flight services. The corporation is positioning its business plan to generate a profit of Rs 1.69 billion over the next five years solely from narrow-body flights.
Five pilots to fly the new Twin Otter
In a bid to enhance its capabilities for remote area flights, NAC is progressing toward the acquisition of three Twin Otter aircraft. Three foreign companies, Hindustan Aeronautical of India, De Havilland of Canada, and Aircraft Industries of the Czech Republic, have submitted proposals to supply the Twin Otter aircraft to NAC.
Ramesh Poudel, the spokesperson for NAC, confirmed that the evaluation of proposals from all three companies is nearing completion. The final decision to purchase the Twin Otter aircraft from one of these companies is expected to be made during the next meeting of the corporation’s board of directors.
Despite the imminent acquisition, NAC has initiated the recruitment process for five qualified captains to operate the Twin Otter aircraft. The selected aircraft will be similar to the existing DHC-6 Twin Otter model within the corporation’s fleet. With the addition of more aircraft of the same type, NAC has opened applications for five captains within a 15-day timeframe.
To be eligible for consideration, captains interested in flying NAC’s domestic flights must meet specific criteria. This includes having logged a minimum of 3,000 flight hours, possessing a type rating for short-distance flight and landing (stall), and being a certified pilot for stall flights as specified by the Civil Aviation Authority of Nepal.
It is emphasized that NAC can appoint a pilot for a one-year term after the selection process, provided the chosen pilot fulfills the outlined criteria. The move underscores NAC’s commitment to expanding and modernizing its fleet to better serve remote and challenging terrains.
