Buddha Air
w w w. b u d d h a a i r. c o m
company profile 2 0 0 6
Buddha Air is among the best schedule flight operators of Beech 1900D aircrafts in the world. As mentioned in the technical audit of Raytheon Aircraft Credit Corp (More than 600 Beech aircrafts are operated in more than 40 countries worldwide)
profile COMPANY
Name of the Company
Buddha Air
Year of Establishment
11.10.1997
Executive Chairman
Surendra Bahadur Basnet Managing Director
Birendra Bahadur Basnet Type of Business
Scheduled Flight Service No. of Aircraft
Six
Type of Aircraft
Pressurized Beech 1900D and 1900C No. of Sector Destinations
Kathmandu Mountain Flight Bhadrapur Bhairahawa Biratnagar Pokhara Nepalgunj Janakpur Simara Bharatpur Dhangadi
finance F
inance Department is divided into Revenue and Expense Division. BHA has 23 staffs in the Finance Department. We use our own Accounting Software. Buddha Air practices dynamic budget system, which monitors the cost of operation by the hour. Computerized accounting system has less than 1% bad debt outstanding in the Revenue Division. Buddha Air has contributed US$ 4.66 million as direct and indirect taxes since inception.
Buddha Air practises dynamic budget system, which monitors the cost of operation by the hour
ct & Indirect Tax
97/98 To 2004/05 Tax (Corp.)
NRs. 4,921,901.00 60,446,298.00
Indirect Tax (VAT & TDS) NRs. 93,739,258.00 50,526,317.00
mis
(management information system)
M
anagement Information System was set up with a vision to capitalize the rapid progress in Information system and communications. Our company has been enjoying the edge of prompt decisionmaking, strategic planning and ready to cope with the challenges, hurdles and competitiveness placed by other competitors through MIS.
5. 6. 7. 8. 9. 10. 11.
We have computerized almost all the major functions, which has to be carried out for smooth operation of an airline. Following are the modules, which we have developed:
motto. So far we have been successful in providing computer for every staff in our Head Office, Engineering office and Sales office. Buddha Air has been enjoying this level of popularity only because of prompt and proper decision by its management, which is due to our Management Information Systems.
1. 2. 3. 4.
Finance and Budget Control System Revenue Accounting System Local Reservation System Comparative Market Research System
Personnel and Payroll System Human Resource Management General Inventory System Operation and Crew Planning System Engineering Inventory System Engineering Planning System Royal Club Frequent Flier System
Computer for every desktop staff is our
Buddha Air has computerized system for almost all the major functions which has to be carried out in order to run an airline smoothly.
engineering E
ngineering Department main objective is to maintain all Buddha Air’s aircrafts in airworthy condition as stipulated by CAAN and the aircrafts manuals provided by the manufacturer. In order to run the department smoothly, it is sub divided into various divisions like: Maintenance Division, Maintenance Planning, workshops, Quality assurance, Technical Records, Library, procurement and stores. Quality Assurance Division monitors various functions laid down by CAA of Nepal and the manufacturer. QA conducts internal audit regularly to make sure all things within engineering are satisfactory. Buddha Air has a large stock of components worth more than US $ 2.5 million including 2 engines, 3 propellers, 3 landing gears, gyros, ACM, Heat Exchanger, etc. and all special tools, testing equipments and ground support equipments required for our aircrafts. All this helps us to maintain our on time departure by 99%. Regular audits from CAA of Nepal, Raytheon Aircraft Company and Pratt & Whitney Canada are conducted annually and we do not have any outstanding discrepancies. Currently, 9 Airframe & Engine and 4 Electronic, Instrument & Radio engineers are working in the Engineering Department, there are a few more in the training process in the Technician group. All these engineers are trained in Raytheon Maintenance Training Center, Flight Safety International Wichita USA and Pratt & Whitney Canada, Singapore Training Center. All engineers are given regular refresher course at the above training center. There are 25 technicians to assist in this Department. We have workshop to carry out jobs like wheelbrake assembly, NDT, fuel nozzles and filters cleaning, battery shop etc. We carry out all private airlines NDT requirements, as we are the only one qualified to carry out this job in Nepal. All our fuel nozzles and filters are cleaned through ultrasonic and electro sonic cleaners to remove dirt and carbon deposits.
operation B
uddha air employs nineteen commanders including four instructors Pilot and twenty-two First Officers, thus eliminating cumulative and/or over fatigue of pilots; the main reason for aviation accidents all over the world. All commanders have about 4,000 hours experience in Beech 1900s and over 8,000 hours overall. All of them have completed their flying courses from reputed institutions in the, USA. BA has established and obtained approval of Beech 1900s type rating training of the flight crewmembers and flight dispatcher from Civil Aviation Authority of Nepal. BHA's aims and objectives with these training programs are to ensure: ď Ž Crewmembers are kept up-todate in respect to the aircraft being flown, training materials are provided regularly and regular examinations are conducted. ď Ž Approved instructor pilots are utilized for flight training, flights checks and simulator training programs. ď Ž Emergency training is provided as set forth in the flight Operation Requirement of the Civil Manual of the company. Two specialized divisions have been created for enhancing safety and providing quality training to all crewmembers. The Chief of flight Safety Division is responsible for flight safety and accident prevention programs implementation. The reading of ADAS (Air Data Acquisition System) and FDR (Flight Data Record) are downloaded every month so that any parameter that has been exceeded by any crew is identified and corrective measure is taken, which none other airlines in Nepal do. The Chief of Training Division is
responsible for imparting the annual five training requirements of CAA of Nepal and one internal training based on CTS (Computer Training Systems), which is specially developed for the B1900 series and keeping the license of all the crew current. BA has fulfilled all Civil Aviation requirements regarding security system of the airport for the protection of the aircraft, passengers, crew, airport staff and facilities. Operation library of BHA has world famous Jeppesen audio-visual training aids and reference books. Well maintained library room, instrument procedure training- a composite system of computer flight controls and special software enhance the knowledge of flight crew of Buddha Air. All commanders hold the Airlines transport License and are required to undergo pilot proficiency checks twice a year. All crewmembers hold the Commercial Pilot License and are required undergo pilot proficiency checks once a year. In additional, all crewmembers are sent for a simulator-training program to Bangkok once a year. All BHA crewmembers have instrument rating endorsed into their license. Cockpit crewmembers and cabin crewmembers are provided refresher courses on safety aspects of the flight and in providing a comfortable flying atmosphere to passengers. For better flight dispatch reliability, BA employs four flight dispatchers who hold licenses from the Civil Aviation of Thailand as well as Nepal.
No. of Flights Comparison 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 Proj.(06/07)
Flights
marketing T
he current domestic market share of Buddha Air is 50.6 %. Marketing Department is one of the vital parts of the Company and the most number of staff are employed here. Our first and foremost responsibility is to satisfy our passengers and to do that by interacting with all the time and take their feedback to better our performance. We also decimate information of our Company to different tour operators as well as direct passengers though different means. Our quarterly in-flight magazine “Buddha Yatra” (Buddha Air’s travel) is in its third year and we distribute 15,000 copies per issue. We have a dedicated form for the passengers comment and we diligently look into every comment and rectify our shortcomings.
Local Passenger Comparison 350,000
97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 Proj.(06/07)
300,000 250,000 200,000 150,000 100,000 50,000 -
Local Pax
Market Share Comparison for (98/99) with other operators
Foreign Passenger Comparison
60 Necon Air Buddha Air RNAC Gorkha Airlines Lumbibi airways Cosmic Air Yeti air
50 40 30
Note : 04/05 figures include only 9.5 months data
50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 -
97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 Proj.(06/07)
Foreign Pax
20
Total Passenger Comparison
10 400,000
-
Market Share in %
97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 Proj.(06/07)
300,000 250,000 200,000
Market Share Comparison for (99/00) with other operators.
150,000 100,000
50
50,000
45
Necon Air Buddha Air RNAC Cosmic Air Gorkha Airlines Mountain air Lumbini Air Yeti air Shangrill Air
40 35 30 25 20 15 10 5 -
Note : 04/05 figures include only 9.5 months data
350,000
Market Share in %
-
Total Pax
Gross US$ Revenue Comparison 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 -
Note : 04/05 figures include only 9.5 months data
Gr. US$ Revenue
Note : 04/05 figures include only 9.5 months data
Market Share Comparison for (01/02) with other operators.
40 35 30 25 20 15 10 5 -
Necon air Buddha Air Cosmic Air Mountain air Shangrill Air RNAC
97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 Proj.(06/07)
Market Share Comparison for (04/05) with other operators.
50 45 40
Buddha Air Cosmic Air Yeti Air Sita Air
35 30 25 20 15 10 5 -
Market Share in %
Market Share Comparison for (02/03) with other operators. Note : 04/05 figures include only 9.5 months data
50 45 40 35 30 25 20 15 10 5 -
Market Share Comparison for (05/06) with other operators.
Buddha Air Necon air Cosmic Air
50
Mountain air
45
RNAC
40
Gorkha
35
Sita shangrilla
Buddha Air Cosmic Air Yeti Air Sita Air
30 25 20 15
Market Share in %
10 5 -
Market Share Comparison for (03/04) with other operators.
60
Buddha Air Cosmic Air
50
Sita
40
Gorkha
30
RNAC
20
Necon air
skyline yeti shangrilla
10 -
Market Share in %
Market Share in %
what is the royal club After much research, technical capability up gradation and groundwork, Buddha Air launched Royal Club, our frequent flyer program over three years ago, which is totally FREE and the main objective is to provide value to frequent flyers through a multi pronged strategy. Currently, we have 35,000 Royal Club gold card members and 1,250 Platinum members. This figure clearly indicates that our customer believe on us and our frequent flyer program. So far we’ve given away free tickets worth of NRs. 21, 420,400/- and shopping gift voucher totaling NRs. 1, We are constantly adding more value to Royal Club, so that our members not only fly the best and most trusted airline in Nepal but also enjoy the best benefits too.
Package Amount Total Code Amount
1 1000 264000
2
1500
400500
3
2500
437500
4 4000 Total >>
796000 1898000
After evaluating the strip report and based on Buddha Air's maintenance performance, we have allowed them to increase the engine life of their Beech 1900D aircraft from 6000 hours to 8500 hours PRAT & WHITNEY, Canada
Every one in Buddha Air knows that Flight Safety starts on the ground. It starts with flight crew selection and training, in training methods and materials, in Aircraft selection and equipment and in following state of the art procedures at all times
hrd
(human resource department) H
uman Resource Department of Buddha Air is one of the important departments of this organization and has been working to improve overall administrative activities. Apart from regular jobs, HRD has initiated SPMS (Staff Performance Management System) program in the
organization so as to improve overall administrative works efficiently and effectively. SPMS is a computerized comprehensive personnel recruitment/ evaluation system that governs the total human resource of the Company. Proper and justified evaluation of each staff and due acknowledgment motivates them so that the work
environment becomes much better. This is the first of its kind in Nepal and it took us two years to develop and implement it. After the implementation of this system our personnel are working more coherently and are better satisfied.
Buddha Air is renewing its Aviation Insurance for the 9th consecutive year in a row with zero claim
S. No. 1
2 3 4
5
6
Department/ Division Finance Expense Division Revenue Division Airport Finance MIS MIS/Head Office MIS/Sinamangal Office HRD Engineering Technical Corporate Engineering Stores Operation Cockpit Crew Cabin Crew Operation Corporate Marketing KTM Airport City Sales Office P.R.A. Head Office Marketing Inflight Magazing Royal Club Head Office Sales Counter Reservation Biratnagar Station Pokhara Station Bhairahawa Station Nepalgunj Station Bhadrapur Station
No. of Employees 08 14 02 06 01 04 38 22 06 41 24 13 53 10 04 02 01 02 03 20 11 09 08 09 07
mountain flight Buddha Air offers a panoramic view of the Himalayas in just one hour.
M
ountain flight is for those who are restricted by time or other considerations from going trekking or other activities go to Mt Enerest region, These flights offer a panoramic view of the Himalayas in just one hour. Even those visitors who like the rigors of a trek still don't miss the opportunity to "conquer" the mountains in one swoop. Travelers take off from Kathmandu in the early morning for an hour's worth of spectacular mountain scenery. As the aircraft lifts up and heads towards the east, passengers don't have to wait long to find out what's in store for them. First to their far left visitors see Gosaithan, also called Shisha Pangma, standing at the majestic height of 8,013 m. To the right of Gosaithan, there appears Dorje Lakpa (6,966 m), a mountain that looks like the number 8 lying down and covered with snow. To the right of Dorje Lakpa is Phurbi-Ghyachu, which looms over the Kathmandu Valley. As the plane moves along, the mountains come closer and closer. Next on the vision is Choba-Bhamare, the smallest one of the lot at 5,933 m but singularly stubborn as it has never been climbed. Then appears the mountain that is not only prominent in sight
but also spirituality - Gauri-Shanker. Lord Shiva (Shanker) and his consort Gauri are said to protect this mountain, at the proud height of 7,134 m, Gauri-Shanker is sharp and very conspicuous during the mountain flight. Melungtse, a plateau like mountain, stretches up to 7,023 m. Chugimago at 6,297 m is still a virgin, waiting to be climbed. At 6,956 m, Numbur mountain resembles a breast, the maternal source in the sky providing pure milk to the Sherpas of the Solukhumbu.. Next is Karyolung, an intensely white mountain at 6,511 m gleams with the rising sun. Cho-Oyu is the eighth highest mountain in the world. reaching a height of 8,201 m, it appears stunningly beautiful from the aircraft. Gyachungkhang, at a majestic height of 7,952 m, considered an extremely difficult climb. To the right of Gyachungkhang is Pumori (7,161 m). passengers get closer to Everest, there's Nuptse (7,855 m), which means West Peak, signifying its direction from Everest. Finally there's Everest (8,848 m) itself, known as Sagarmatha by the Nepalese and Chomolungma by the Tibetans. Much has already been written about Everest, but to actually witness it face to face during a mountain flight is something else. Even while it looms there in front of the eyes, it remains an enigma, the highest spot on earth.
social service Buddha Air feels that Corporate Social Responsibility is the fundamental of being involved in profit making activities. Every entity has an obligation towards its society to make it better and Buddha Air is not exception. When we become financially mature, we started thinking of identifying our segment of social responsibility and thought that we need to focus on bringing some economic change in the rural mass, which constitute of 85% of the population based on agriculture economy. We did
not want to dole out some cash for petty donations, which tends to make us more dependent rather than standing on our own two feet and becoming independent economically. We started an agricultural extension program in Tankisunwari VDC of Morang to gain confidence of the local small scale farmers. We are able to increase the production output by simply exposing the farmers to appropriate fertilizer management, required technology transfer and provision of good seeds.
Once we gained the confidence of the farmers, we were able to convince them to form a cooperative so that they can continue this work as well as introduce product banking. The fundamental problem of our farmer is; they are not getting the right price for their product because the middlemen are very active in this field and they have the gullible farmers in their account by providing loans when they need at an astronomous interest rate that could go up to 60% per anum. Our social responsibility is to break this
vicious chain and get the farmers the best price of their product, so we introduced product banking for the farmers who were organized in this cooperative (which has been registered as per the cooperative act). The cooperative charges an interest of 12% per anum and provides loan to the farmers at the beginning of plantation for such requirements as seeds and fertilizers against the harvest. The farmers bank their harvest with the cooperative and will sell them when they get the best price, which is about 4-5 months after harvest.   We have already concluded a successful season of product banking for paddy last year, where a farmer gained almost 2 times taking into consideration the higher yield, saving in interest of the loan and better price of their product, which was sold about 4 months from the harvest.   Now, we are planning to support this cooperative but lobbying for funds for the product banking, which will cover the two Village Development Committee where this program is implemented.
Buddha Air Head Office: P.O.Box 2167 Kathmandu, Nepal Telephone: 977-1-5521015 Fax: 977-1-5537726 Email: buddhaair@buddhaair.com
City Sales Office Hattisar Telephone: 977-1-4437025, 4437677 Fax: 977-1-4436033