Nauru Airlines puts a B737 freighter up for sale

Nauru Airlines (ON, Nauru) has put one of its two B737-300(F)s up for sale with July 15, 2021, set as the planned delivery date of the 28.5-year-old jet to its new owner.

About Nauru Airlines

TypeVirtual Carrier

VH-VLI (MSN 27125) is currently active under the Nauru Airlines (Australia) (ON, Brisbane Int’l) AOC plying regular shuttle flights between Melbourne TullamarineSydney Kingsford Smith, and Brisbane Int’l on behalf of Qantas Freight (Sydney Kingsford Smith). According to the ch-aviation fleets advanced module, it is owned by the Government of Nauru through its Sunco Pty Ltd Holding Inc. special purpose vehicle. It features CFM International CFM56-3B2 powerplants and, as of the issuance of the RFP, had amassed 29,965 airframe hours with 21,408 cycles.

The Boeing jet will be sold strictly in an “as is, where is, with all faults” condition.

Offers are due by 1700L (0700Z) on June 2, 2021, after which a preferred tenderer will be selected on June 9.

State-owned Nauru Airlines also operates one other B737-300(F) alongside two pax-configured B737-300s. Deputy chief executive Robert Eoe told ch-aviation there are plans to sell off one of the passenger B737s but that may likely only take place next year.

As previously reported, Nauru Airlines is looking to purchase two B737-700s to replace the B737-300 passenger jets in order to “provide safer, more reliable, more cost-efficient aircraft and a better passenger experience”.

In October last year, the government and parliament approved a disbursement of USD24.95 million for the replacement programme which will be raised via a loan from the Taiwanese EXIM bank.

The loan, which has an indicative term of 12 years and indicative interest of six months LIBOR + 0.8%, is expected to be financed once suitable aircraft have been purchased, as the aircraft will be collateral for the loan. Repayments for the first three years will, in large part, be met by additional donor support from the Taiwanese government.