Buddha Air Pvt. Ltd. Company profile for the year 2007

www.buddhaair.com

Buddha Air company

profile

2007

company profile

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

Seven Type of Aircraft

Pressurized Beech 1900D (5) and 1900C (2) No. of Sector Destinations

1. Kathmandu 2. Mountain Flight 3. Bhadrapur 4. Bhairahawa 5. Biratnagar 6. Pokhara 7. Nepalgunj 8. Janakpur 9. Simara 10. Bharatpur 11. Dhangadi

The Highest Safety Record in 2006 Ministry of Culture, Tourism and Civil Aviation

CELEBRATING

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7th aircraft to our fleet B uddha Air started its operation with just two aircrafts. It has added five more within ten years, with the investment of Nepali Banks, which has established Buddha Air as an asset of the nation.

Buddha Air created private sector aviation history by operating brand new and straight out the factory

Buddha Air is among the best schedule flight operators of Beech 1900s aircraft in the world l As mentioned in the technical audit of Raytheon Aircraft Credit Corp (More than 600 Beech aircrafts are operated in more than 40 countries worldwide)

aircraft. We, at Buddha Air, are operating the most expensive aircrafts in the domestic sector. We are delighted and proud to claim that Buddha Air has been and is still the safest and most preferred airline in the country.

T

he main aim of Engineering Department is to maintain 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 that every aspect within engineering department are satisfactory.

We have 14 qualified engineers and 31 technicians which makes our engineering team the strongest in private domestic sector.

Buddha Air has a large stock of aircraft spares and components worth more than US $ 3 million including 2 engines, 3 propellers, 3 landing gears, gyros, ACMs, Heat Exchangers, as well as special tools, testing equipments and ground support equipments required for our aircrafts as per

international standard. 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 and we do not have any outstanding discrepancies.

All our 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.

Buddha Air is the only airlines qualified to carry out NDT requirements in Nepal.

We have our own workshop to carry out jobs like wheel-brake assembly, NDT, fuel nozzles and filter cleaning, battery shop etc. All the fuel nozzles and filters are cleaned in our own workshop through ultrasonic and electro sonic cleaners to remove dirt and carbon deposits.

We are in the process of constructing a state of art hanger and workshop space of more than 30,000 sq. ft., which will be the first in the history of private aviation industry of Nepal.

engineering DEPARTMENT

Buddha Air is the only airline's qualified to carry out NDT requirements in Nepal

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operation DEPARTMENT

Buddha Air has established and obtained approval of Beech 1900s type rating training of the flight crew members

B

uddha air started its operation on October 1997 with six commanders and six co-pilots and five destination. After ten years, Buddha air employs twenty six commanders including six instructors Pilot and twenty-eight First Officers, thus eliminating cumulative and 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.

BHA has established and obtained approval of Beech 1900s type rating training of the flight crew members and flight dispatcher from Civil Aviation Authority of Nepal. Buddha Air’s aim and objectives with these training programs are to ensure:

No. of Flights Comparison 30,000 25,000 20,000 15,000 10,000

1. Crewmembers are kept up-to-date in respect

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5,000 to the aircrafts, training materials are provided regularly and regular examinations are conducted.

02/03 03/04 04/05 05/06 06/07 Proj.(07/08)

All Buddha Air 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.

2. Approved instructor pilots are utilized for flight training, flights checks and simulator training programs.

For better flight dispatch reliability, Buddha air Note : 04/05 figures include only 9.5employs months datafive flight dispatchers who hold licenses

3. Emergency training is provided as set forth in the from the Civil Aviation of Thailand as well as Nepal. flight Operation Requirement of the company.

I

n Ten years Management Information Systems in Buddha air has come a long way from paper work to fully computerized system. It refers to the study of the design, implementation, management and use of information applications in organizations.

It emphasizes the collection, organization, analysis and dissemination of information for the planning and control of business or organizational operations. Buddha Air has the vision of capitalizing the most useful part of information system from its starting days and so far it has been successful in applying a fine information system.

Management Information System, which was set up in early period of its inception has been

working in this field so as to achieve maximum output from information technology.

To achieve the goal of its management's vision , MIS has been working on it every day. It is not an easy task concerning the status of information technology in our country and huge initial financial investment requirement and above all the education and commitment of working level staff towards this direction. Buddha Air’s effort towards this aspect for more than ten years has borne fruit in creating a very sound and transparent organization.

m.i.s.

DEPARTMENT

Buddha Air has computerized system for almost all the major functions which has to be carried out in order to run an airline smoothly

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I

n September 2002, Buddha air launched Royal Club- the frequent flyer program. Royal Club aims to reward passengers loyal to Buddha Air by giving them mileage points every time they fly. When accumulated, these points can be redeemed for free tickets, holiday packages, shopping and similar facilities.

We also have launched the platinum memberships program in 2005 which is an upgrade of the Royal club (Gold). This exclusive group of members will receive numerous benefits above normal members. We are delighted to say that we have more than 40,000 Royal Club gold card members and 2, 050

Platinum members. We are proud to have their patronage to make Royal Club the largest frequent flyer program in the country. The above figure clearly indicates that our customers believe us to be the frequent flyer program with the greatest value.

Today, Royal Club –Frequent flyer program is widely regarded as the best loyalty program in aviation industry of Nepal. In August 2007 we launched Part miles+ Part cash ticket redeem schemes for our valued Royal club members.

The mile cash feature offers more flexibility in the payment by allowing members to redeem their preferred reward by paying part mile + part cash.

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Market Share Comparison for (02/03) with other operators 50 45 40

Buddha Air Necon air Cosmic Air Mountain air RNAC Gorkha Sita shangrilla

35 30 25 20 15

marketing DEPARTMENT Buddha Air is renewing its Aviation Insurance for the 10th consecutive year in a row with zero claim

10 5 -

Market Share in %

A

Market Share Comparison for (03/04) with other operators

t present, Buddha Air has 100% market share in Janakpur, Simra and Dhangadi, 74% in Bharatpur, 67% in Mountain Flights, 65% in Bhairahawa, 56% in Nepalgunj, 53%in Bhadrapur, less than 50% of the total market share in Biratnagar and Pokhara; 31% and 35% .

Our total market share in 2007 is 55% which was 38% in 2005 and 57% in 2006.

60 50

Buddha Air Cosmic Air Sita Gorkha skyline RNAC yeti Necon air shangrilla

40 30 20 10 -

Continuous operation of all 7 aircrafts has started from July 15th. We aim to consolidate our market share to 60% with the addition of 7th aircraft along with more frequency and on time dispatch reliability on all sectors.

Market Share in %

Market Share Comparison for (04/05) with other operators 45 40 35

Buddha Air Cosmic Air Yeti Air Sita Air

30 25 20 15 10 5 -

Market Share in %

Comparison of flights for ten years operation of Buddha Air

23835

25000

19788

23021

21199

20000

14433 Flights

15000

10000

Gross US$ Revenue Comparison 5000

7,000,000

02/03

6,000,000

03/04 04/05

5,000,000

0 02/03

03/04

4,000,000

04/05

05/06

06/07

Fiscal Year

05/06 06/07 Proj.(07/08)

3,000,000

Foreign Passenger Comparison

2,000,000 1,000,000

60,000

02/03

-

50,000

04/05

Gr. US$ Revenue

Total Passenger Comparison 03/04

350,000

05/06

-

06/07

250,000

Proj.(07/08)

200,000

Proj.(07/08)

06/07

10,000

04/05

300,000

05/06

30,000 20,000

02/03

400,000

03/04

40,000

Foreign Pax

150,000 100,000 50,000

Local Passenger Comparison

-

Total Pax

350,000 300,000

02/03

250,000

03/04 04/05

200,000

05/06

150,000

Proj.(07/08)

06/07

100,000 50,000 -

Local Pax CELEBRATING

Note : 04/05 figures include only 9.5 months data

Market Share Comparison for (05/06) with other operators 50

Buddha Air Cosmic Air

40

Yeti Air Sita Air

30 20 10 -

Market Share in %

Market Share Comparison for (06/07) with other operators 60

Buddha Air

50

Yeti Air Cosmic Air

40

Sita Air

30 20 10 -

Market Share in %

finance DEPARTMENT

Buddha Air practises dynamic budget system, which monitors the cost of operation by the hour

F

inance Department has two divisions

1. Revenue 2. Expense Division We at Finance department use our own accounting Software, Buddha Air practices dynamic budget system, which monitors the cost of operation by the hour and our computerized accounting system has less than 1% bad debt outstanding in the Revenue Division.

CELEBRATING

Details of Direct & Indirect Tax Period from 1997/98 to 2006/07

Direct Tax (Corp.)

NRs.

Indirect Tax (Vat, Custom, TDS) NRs.

4,921,901.00

93,739,258.00

60,446,298.00

50,526,317.00

FY 2004/05

6,380,445.00

57,914,317.00

FY 2005/06

7,936,608.00

65,455,000.00

FY 2006/07 [Prov.]

37,270,220.00

75,619,000.00

Total >>

116,955,472.00

343,253,892.00

Fiscal Year Up to FY 1997/98 FY 2003/04

Grand Total >> Total Tax Contribution in USD (@65) >>

460,209,364.00 7,080,144.00

T

he introduction of a comprehensive Staff Performance Management System (SPMS)which is based on software designed exclusively for Buddha Air that provides an effective management framework for quality human resource analysis. Thus, to encourage and derive quality human resource performance Buddha Air recently motivated more than 65 staffs in different ways including upgrading 10 staffs from attendant band based upon their appraisal reports and organizations requirement. Buddha Air believes in building career

S. No.

Department/Division/Station

path for its employees and therefore has provided opportunities for lower level staffs to move forward for their career progression.   Through appraisal reports, individual employees requirements' are identified and distinguished to provide them with appropriate treatment and enhance their performance to use its resources to optimum level. These motivation factors ultimately help to obtain the organization goal.

No. Of Employees

Marketing

Finance 1

Expense

09

Revenue

15

Airport

02

MIS 2 3

Head Office

06

Sinamangal

01

HRD

05

6

Engineering 4

Technical

45

Corporate

24

Store

07

Operations 5

Cockpit Crew

54

Cabin Crew

19

Corporate

16

KTM Airport

63

City Sales

13

P.R.A.

04

Head Office Marketing

02

In-flight Magazine

01

Royal Club

01

Head Office Sales Counter

03

Reservation

22

Biratnagar

11

Pokhara

09

Bhairahawa

08

Nepalgunj

08

Bhadrapur

08

Janakpur

07

Simara

10

Bharatpur

06

Dhangadhi

07

G.S.D. 7

Head Office

18

Transport

28

Sinamangal

02

Catering

03

TOTAL

437

human res.

DEPARTMENT

Buddha Air believes in building career path for its employees and therefore has provided opportunities for lower level staffs to move forward for their career progression

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safety MEASURES

Adhering to safety regulations

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T

he most common cause of aircraft incidents or accidents is either mechanical failures or pilots not adhering to prescribed flying procedures as per the aircraft flight manuals. The weekly reports generated by ADAS (Aircraft Data Acquisition Unit) and FDR (Flight Data Recorder) automatically detects if any pilot is deviating from the manuals or if any part needs replacement, which is then immediately corrected by our concerned division.

This ensures that all our pilots operate as per the manuals. Engineers are also made aware at an early stage if any aircraft component needs repair or replacement, thus ensuring flight safety. Buddha Air is the only airline in the country equipped with the modern technology ADAS. The fact that Buddha Air has never claimed insurance due to major

mishaps is a testament to our safety standards.

All aircrafts operated by Buddha Air are equipped with ADAS, SSDFDR (Solid State Digital Flight Data Recorder), and SSDCVR (Solid State Digital Cockpit Voice Recorder).

ADAS: This unit performs following primary functions: (a) Excedience Event Recording: The ADAS monitors critical engine parameters and record instances where they have exceeded preset values (excedience).

(b)

(c)

Engine Trend Monitoring: The ADAS gathers and stores engine data samples for trend analysis.

Cockpit Indication: The ADAS can be configured to warn the pilot of a prior excedience on start up or shutdown, and provide the system self-test indication.

  FDR: This unit is a part of what we called the BLACKBOX. This unit continuously records more than 18 different engines and airframe parameters at least for 25 hours on memory chips (RAM). This data is useful for incident investigation as well as for parameter analysis purpose.   We are proud to inform that there has been no weekly exceeding report from the Operation side on ADAS and FDR after we introduced these reporting systems.

WEATHER RADAR SHOWING THE WEATHER AHEAD

MT. EVEREST

LHOTSE

MAKALU

NUPTSE

I

t is not always that you look out and catch a glimpse of the highest peak in the world just outside your window. No one would miss the chance to behold the majestic peak of Mt.Everest and cherish the moment forever. The Everest Experience flight of Buddha Air gives you the opportunity to grasp the moment of your dreams flying past nine gorgeous peaks in the world.

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Our sightseeing flight to Mt. Everest has created a niche for itself. The powerful PT6A-67D engine enables the aircraft to fly at 25,000 feet. Circling Mount Ammadablam to enter the Khumbu valley, we take you almost five nautical miles from the highest peak in the world (weather permitting) - a feat accomplished by our aircrafts and pilots alone.   We provide each passenger with an individual window seat during the entire flight. Moreover, we invite all our passengers to the cockpit form where you can take some spectacular pictures of the highest peak in the world. In addition, the low noise and the instant cabin temperature allows you to have the most comfortable flight available.

Best Mountain Flight in the World Having flown more than 2,35,000 passengers in Everest Experience Flight in Ten years and with a growing demand, we can confidently say that we have been operating the best mountain flight in the world. A flight so satisfying that one of our passengers commented "I did not climb Mt. Everest but I touched it with my heart."

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MELUNGTSE

CHO-ROLPA LAKE MAKALU CHAMLANG

DOODHKOSHI RIVER

NAMCHE BAZAR SYANGBOCHE AIRFIELD

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MT. EVEREST LHOTSE NUPTSE

Buddha Air offers a panoramic view of the Himalayas in just one hour CHO-OYU

GAURISHANKAR

BEHIND DOODHKUND HIMAL

GO-KYO LAKE AREA

PUMORI

Famous mountains & peaks in Nepal

AMADABLAM

1. Mt. Everest

(8,848 mtrs)

2. Kanchanjunga

(8,586 mtrs)

3. Lhotse

(8,516 mtrs)

4. Makalu

(8,463 mtrs)

5. Cho Oyu

(8,201 mtrs)

6. Dhaulagiri

(8,167 mtrs)

7. Manaslu

(8,163 mtrs)

8. Annapurna

(8,091 mtrs)

9. Gaurishankar (7,134 mtrs) 10. Amadablam

(6,812 mtrs)

10. Mera Peak

(6,654 mtrs)

photographs by: Captain A.G. Sherpa, Buddha Air

Buddha Air, in some ways has been working to uplift the poor farmer of the society for the last three years

Corporate Social Responsibility 

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The Management department of Buddha Air is very particular about its corporate social responsibility and considers CSR as more than just donations and sponsorship. We, at Buddha Air believe that corporate houses must work in creating

innovative systems to upgrade the very downtrodden poor populace, which is about 80% of the total population.   Nepal is a predominantly agricultural economy, where more than 80% of

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the population relies on agriculture for subsistence. Buddha Air, in some ways has been working to uplift this segment of the society for the last three years.   We supported an agriculture extension program at Tankisunwari Village Development Committee, Morang for two years, where we tested the concept of providing appropriate technology transfer to the existing crops as well as community banking for the existing commercial crops.   The result was very encouraging and

the targeted farmers gained more than 140% annually.   We have been motivated with this result and after much deliberation and planning we are in the process of supporting and setting up a rural bank, which will focus on product banking and be involved in supporting each step of the required extension program.

We hope to have this program implemented by next year, which will empower the local farmers to get maximum benefit of their product.

Every one in Buddha Air know 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

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Buddha Air not only priorities its employees working efficiency but also their overall development.

The result of which is its outstanding sports performance at various level

CELEBRATING

Corporate Super Bowling Tournament 2007

Capt. A.G. Sherpa

Capt. Prakash Shrestha

Mahesh Basnyat

"SAFETY AND SECURITY - FIRST AND ALWAYS THE TOP PRIORITY" GOVERNMENT OF NEPAL, MINISTRY OF CULTURE, TOURISM AND CIVIL AVIATION

AWARDS TO

Buddha Air Pvt. Ltd. CELEBRATING

For the Highest Safety Record 2006

on the occasion of International Civil Aviation Day 7th December 2006

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