Nepal Airlines has retired all six of its Chinese-made aircraft - two MA-60s and four Y12Es - as of July 16, due to their sub-standard performance and high operating costs, local media has reported.
"The board decision is purely aimed at preventing ballooning losses in the future, which has till now reached $16.6 million — mostly in insurance and operating costs. The corporation cannot afford to fly them anymore," board member Achyut Pahari told the Kathmandu Post.
Pahari went onto to say that the aircraft should never have been acquired by the airline as their performance did not suit Nepalese topography and infrastructure.
"[The 2012 decision to buy the aircraft] was prompted by greed for commissions. [The Nepali experts] submitted a fabricated report. The Y12E was compared with the Twin Otter, and the MA60 was compared with the ATR72. Nepal Airlines is paying the price now," Pahair said.