KATHMANDU: Nepal Airlines Corporation (NAC) has begun preparations to invite a global tender for the complete overhaul of its two Airbus A330 widebody aircraft. Seven years after the aircraft began commercial operations, both planes are set to undergo overhaul on a rotational basis.

Under regulations, an Airbus A330 must undergo an overhaul after completing 6,000 flight cycles. According to the NAC, the Airbus Makalu has around 400 flight cycles remaining, while the Annapurna has about 500 cycles left before reaching that threshold.

“Having only this many cycles remaining means we’ve reached a sensitive point for overhaul,” said NAC Technical Spokesperson Devendra Pun. According to him, a single tender will be invited for the overhaul of both aircraft. The total estimated cost for overhauling the two planes is around Rs 5 billion.

The NAC plans to issue the tender so that Makalu can be sent for overhaul by mid-September this year and Annapurna by mid-January 2027.

Earlier, according to Pun, the tender notice was to be issued by Tuesday (February 17). “But as NAC’s Executive Director Amrit Man Shrestha was in India and returned home only on Wednesday (today), the tender will be most probably called by Friday (February 20),” said Pun.

The process is being prepared in accordance with the Public Procurement Act, 2007 (2063 BS) and its Regulations, 2007 (2064 BS). “Due to provisions in the Procurement Act, the process must begin eight to twelve months before the scheduled overhaul time,” Pun explained.

The initial 45-day notice period will be followed by procedures such as handling objections, technical and financial evaluations, issuance of a letter of intent, and contract signing –  a process that could take at least three months. The Procurement Act requires awarding the contract to the lowest bidder. “Since all provisions of the Act must be fulfilled, the process has been initiated eight months in advance,” he said.

The NAC purchased the Annapurna aircraft on June 28, 2018 and the Makalu on July 26, 2018 from France’s AAR company.

At least four months required; engines to be leased

The overhaul of an Airbus A330 widebody aircraft takes at least four months. During the maintenance of the Makalu widebody, major festivals such as Dashain and Tihar will fall. As passenger demand rises during this period, grounding the aircraft could result in financial losses for the NAC.

As an alternative, the Corporation is also working on leasing engines and is preparing a tender for that as well. “We have chosen to lease engines rather than lease an entire aircraft,” Pun said. “Leasing a whole aircraft involves higher investment and requires a corresponding commercial plan.”

Despite the possibility of engine failure at any time, the Corporation has no plan to purchase spare engines.

The Corporation also plans to use leased engines when Annapurna is sent for overhaul. “Among the international companies offering the lowest bids, Airbus itself may participate,” Pun said. If engines are leased directly from the manufacturer Airbus, there would be no need for a tender. However, since Airbus may set higher prices, the Corporation has opted to follow the Procurement Act procedures.

Despite the possibility of engine failure at any time, the Corporation has no plan to purchase spare engines. “Buying additional engines would create a heavy financial burden. Managing the costs of regular maintenance, safety, insurance, and secure storage would also need to be ensured,” Pun said.

Chapter 24 of the Corporation’s Financial Regulations, 2008 (2065 BS), includes provisions related to the purchase, overhaul, and maintenance of engines and spare parts. According to Regulation 216(1), the Engineering Department determines maintenance schedules based on timeliness and cost-efficiency for the purchase, overhaul, repair, modification, or procurement of engines and parts. Aircraft components have an average lifespan, and maintenance lists and schedules must be prepared in advance based on replacement timelines.

“In the past, the overhaul schedule for the Airbus A320 was neglected and the tender process was rushed, which resulted in the aircraft being grounded for a long time,” Pun said. “That’s why this time the process has been started on time.”

Chapter 24 of the Corporation’s Financial Regulations, 2008 (2065 BS), includes provisions related to the purchase, overhaul, and maintenance of engines and spare parts.

Airbus itself provides aircraft maintenance, upgrades, and technical support. In addition, companies such as Lufthansa Technik, ST Engineering, AAI, and Safran Aircraft Engines also provide Airbus maintenance services.

Nepal Airlines has replaced its Boeing 757 aircraft and is currently operating two widebody and two narrowbody aircraft manufactured by Airbus.