Buddha Air
www.buddhaair.com
2013/14
COMPANY
PROFILE
ABOUT US
Buddha AIR Buddha Air is a privately operated largest carrier in Nepal. It came into operation on 11 October, 1997 with one brand new Beech 1900D aircraft following liberalization of the aviation sector after restoration of democracy in 1990. At that time it was conducting flights to five destinations. Headquartered in Jawalakhel, Lalitpur of Nepal, Buddha Air’s flight network covers a dozen domestic destinations and international destinations including Varanasi of India and Paro of Bhutan (chartered only). It now owns nine aircrafts.
Year of Operation
11.10.1997
Executive Chairman
Surendra Bahadur Basnet
Managing Director
Birendra Bahadur Basnet
Type of Business
Intl./Domestic | Schedule Flight Operator
Type of AircraftS
Beech 1900D | ATR 42-320 | ATR 72-500
No. of AircraftS
EIGHT [2 Beech 1900D, 3 ATR 42-300 & 3 ATR 72-500]
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destinations
Fishtail & Annapurna
Dhangadhi
Pokhara KATHMANDU
Mt. Everest
Nepalgunj Bhairahawa
Tumlingtar Bharatpur
Simara
Paro, Bhutan
Janakpur
Chartered Flights
Biratnagar
Bhadrapur
Varanasi, India
KATHMANDU
POKHARA
NEPALGUNJ
LUMBINI [BHAIRAHAWA]
SIMARA/BIRGUNJ
BIRATNAGAR
2
BHADRAPUR
DHANAGADHI
PARO [BHUTAN]
JANAKPUR
BHARATPUR [CHITWAN]
TUMLINGTAR
VARANASI [INDIA]
AIRCRAFTS
Beech 1900 D
ATR-42-320
ATR-72-500
It is on the choice list of
Three 47-seater ATR-
Widely
the American Aircraft
42-320 aircraft owned
appreciated
Pilots’ Association.
by Buddha Air are also
as one of the
Manufactured by the
widely accepted aircraft.
best regional
US-based Hawker
Buddha Air has been
aircraft in the
Beechcraft, this 18-seater
successful in providing
world, ATR-72 is the enhanced
is safe, comfortable and
affordable services to
form of ATR 42 with expanded
reliable. Powered by two
Nepali passengers with
seating capacity of 72 from
powerful Pratt & Whitney
the addition of these
47. Buddha Air currently
PT6A-67D turboprop
aircrafts to its fleet.
has three ATR-72 aircraft in
engines, Beechcraft
Adapting to rapidly
operation. Along with safety, the
1900D is widely accepted
evolving competitive
aircraft is popular for its cost-
as one of the best
market, Buddha Air
effectiveness in operation and
airplanes in the world.
brought these aircrafts
environment friendly features.
by securing loan worth
More than 1,000 such aircrafts
US$ 16.9 million from
have been manufactured till
the International Finance
date.
Corporation (IFC), a member of the World Bank Group.
Buddha Air has been operating services with a fleet of widely accepted world’s best aircraft that includethree18-seaterBeech1900D, three47-seaterATR-42andthree72seater ATR 72-500.
Buddha Air is Prime Client of International Finance Corporation (IFC) – World Bank Group in Nepal with a total loan portfolio of US$ 16.9 million 3
SALES & MARKETING
A
s a leading airline operator, Buddha Air has captured largest portion of the market share
in domestic aviation and is further consolidating its position in the market by taking advantage of its credibility, high-quality services and everincreasing efficiency. Buddha Air, which currently commands 65 percent share of the domestic aviation market, has set a target of expanding it to 70 percent in the fiscal year 2013/14. In a relatively short period, Buddha Air has expanded
its
services
to
dozen
domestic
destinations and two international destinations offering unmatched level of service. This has helped it become the best airline in Nepal.
Airlines Market Share Comparison [2012-13] (projected data based on 10.5 months actual data)
0.14% Agni Air
2.24%
Guna Air/Simrik
31.95%
Yeti Airlines
65.67% Buddha Air
(Buddha Air-operated sectors only)
Our strong dominance in the market will be further strengthened with better services
4
Mr. Rupesh Joshi Sales & Marketing
Total Passengers Comparison 2012-2013 (projected data based on 10.5 months actual data) 1,000,000 900,000 800,000 700,000 600,000 500,000 4000,00 300,000 200,000 100,000 0
97/98
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
12/13
We are committed to expanding our market share to 70 percent in the year 2013/14 from existing around 65 percent
5
Royal Club Frequent Flyer Program introduced by Buddha Air has become a strong medium to directly reach to regular passengers by rewarding them with different offers. The members of the Royal Club can get mileage points which can be exchanged for free tickets, holiday packages and even shopping purpose.
Number of Flights Comparison 2012-2013 (projected data based on 10.5 months actual data) 23835 21199
10674
23529 22341
21018
22266
11210
9476 7582
3916 97/98
6
23764
14433
Royal Club Gold Card members
Platinum Members
22198
19788
1,00,893 7,301
23021
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
12/13
MANAGEMENT INFORMATION SYSTEM
B
uddha Air has come a long way since its establishment one and half decades ago. It
has migrated from paper-based works to a fully computerized system. Designing, implementing, managing and use of information technology in the organization are among major tasks being carried out in Buddha Air under MIS. The airline company has been making use of modern technology for information management and for efficient and transparent collection, maintenance, analysis
and
dissemination
of
information.
Buddha Air has installed fully computerized system for all major functions which are to be carried out in order to run the airline smoothly.
Application of fully computerised system in information management is our strength
Mr. Rajin Ranjit MIS
7
hangar
O
ur state-ofthe art closed door hangar has been in operation for last couple of years. The international standard hangar has helped our Technical and Operations Department establish better coordination and communication. With the operation of the hangar, huge amount of Nepali currency that otherwise would have flown out of the country has been saved, as the carrier no longer needs to go abroad for maintenance.
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FEATURES OF HANGAR l
l
l l
l
l
Built at a cost of US $ 2.5 million,thehangarexpands over an area of almost 37,000 square feet. Only facility of its kind in Nepalandamongstavery few in South Asia. Capacitytoaccommodate Airbus 320 or Boeing 737. Ground floor has workshops,technicalstores and base maintenance office. First Floor features TechnicalandOperations Department along with a meetingroomandcentral server room. Second Floor with an inhouse canteen features one meeting room, a class room for 45 persons and one library each for OperationsandTechnical Department.
Achievements in maintenance Installation of Multi-purpose Computer (MPC) and Weather Radar Model Primus 660 in 9NAJS aircraft, ‘C’ checks of ATR Fleet as well as three 36000 threshold inspection of ATR fleet are some of the successful examples of maintenance works performed at maintenance facilities at the company.
technical
he airline has its own well-equipped maintenance facility as per NCAR-145 requirements in terms of hangar space, tools & equipment, workshop facilities and aircraft parts & material storage. The company’s technical workforce is trained as per Aircraft Manufacturer’s Approved Courses and all required maintenance works are being carried out on its fleet. Under the maintenance facility, Line and Base Maintenance is conducted on its fleet of 1900D, ATR-42 and ATR-72. Other major maintenance works being performed by the airline include scheduled maintenance up to C-Checks, 12-year inspections and 36000 cycle threshold inspection for ATR, scheduled maintenance of up to I Checks, and 200-hour detailed inspection.
Safety Audit was conducted by Clear Sky Audits/Training, the UK, on behalf of Explore, Exodus & TUI Travel Group on 28th and 29th April 2013. Similarly, Pre-assessment Audit was conducted by IATA Safety Auditors: ICF SH&E, New York from 21st to 23rd May 2013. Audit by CAAN and Operational Safety Audit by ICF SH& E are planned for this year.
Flight safety is our key priority. So, we are enhancing measures for flight safety applying International Air Transport Association (IATA) Operational Safety Audit-IOSA
Mr. Mangesh Thapa Technical
page
T
11
9
OPERATION
B
uddha Air is the only private airline in Nepal to send all its ATR & B1900D cockpit crews every six months for refresher trainings at dedicated six axis full motion simulators as per the requirement of Civil Aviation Authority of Nepal (CAAN), the aviation sector regulator. The airline spends US$600,000 annually on skill-enhancement activities.
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Qualified cabin crew and cockpit crew members are our valuable assets for our excellence in service
Mr. Subarna Kharel Operation
craft are R and Beech air Buddha Air’s AT s. Canada engine att & Whitney powered by Pr le ab cc pe ve an im rvision, they ha l Under our supe pa Ne notonlyin dsafetyrecord, maintenancean on. South Asia regi but across the n
Regional Sales
Mr. Vellu Venu
& Whitney Manager, Pratt
Canada
Safety Measures- IOSA
Enhancing the measures for flight safety, we are in the final stage for International Air Transport Association (IATA) International Operational Safety Audit-IOSA. We have signed the agreement with IOSA auditor ICF SH&E, one of the eight IATA designated auditor. The airline has started IOSA pre-audit evaluation on July 2012 at a cost of more than US$90,000. With this, Buddha Air will be the first airline from Nepal to be IOSA complaint. Pre-assessment process was commenced from May 21st -23rd 2013.IOSA has 950 standards to be audited by 1st week of January 2014 in the operation areas which include: n Corporate organization and Management n Flight Operations n Operational Control and Flight Dispatch n Aircraft Technical and Maintenance n Cabin Operations n Aircraft Ground Handling n Cargo Operations n Operation Security
rator and we sified as a very safe ope Buddha Air has been clas . This is a on lease purchase option have provided the ATR-72 rators who en only to highly rated ope very rare opportunity giv operations ic audit, engineering and have structured and period us. by management monitored n Mr.
Jean-Luc Establie
any
Sales Director, ATR Comp
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FINANCE & REVENUE
W
recognized with the ‘Largest Taxpayer in the Tourism Industry’ award by the government in 2012.
ith the overwhelming trust of our valued customers, Buddha Air has been enjoying a sustained growth in revenue. Established with initial investment of US$8 million, the airline has increased its assets to US$44 million. Buddha Air was
Our total projected revenue in 2012/13 (based on 10.5 months actual data) reached to Rs 4.40 billion up from Rs. 3.23 billion recorded in last fiscal year. Likewise, our direct tax contribution Indirect Tax was Rs 37.08 million and we paid direct Tax indirect tax of Rs. 20.97 million till March 2012. 20,97,59,602
Details of Direct & Indirect Tax Period from 2005/06 to 2011 / UPTO 31 March 2012
2,50,00,000
(CUSTOM, VAT & TDS)
(CORP.)
2,00,00,000
17,80,63,646
REVENUE COMPARISON
15,90,41,802 1,50,00,000
(in NPR)
2012-2013 (projected data based on 10.5 months actual data)
14,71,93,838
4400500641 10,77,37,953 9,56,74,197
1,00,00,000
5,79,14,317
2192320921 4,88,98,108
4,04,84,484
4,65,00,000
3,12,10,868
2017829931
1543255853
4,33,16,289 2,63,42,963
63,80,445
37,080,737
79,36,608
0 04-05
Mr. Ramesh Luitel Finance
12
page
2517075652
6,54,55,000
5,00,00,000
12
3233190502
7,95,55,268
05-06
06-07
07-08
08-09
09-10
10-11
11-12
Our efficient financing system has won the trust of domestic and global lending agencies
12-13
07/08
08/09
Backed by increasing trust of valued customers, we are able to maintain sustained growth in revenue
09/10
10/11
11/12
12/13
Mr. Ganesh Raj Lohani Revenue
HRD
FINANCE REVENUE
General Service 93
19
QMS
Corporate 8 TIA 29 Transport 56
B
uddha Air is leading employer in the country with 702 staff members. The Human Resource Department (HRD) manages company’s human resources and provides equal opportunities to staff by discouraging nepotism and favoritism. Besides, the airline has also been investing significant amount in capacity development of its employees and offering them necessary trainings. Keeping in view the importance of human resources, the HRD is planning to soon set up a separate unit for effective evaluation of performance of its employees.
13
HRD
13 21
Technical
Total Staff
Marketing
290
Corporate 5 TIA 89 Cargo 13 Public Relation 6 City Sales 14 Sundhara Sales 4 Jawalakhel Sales 6 Reservation 18 Outstation
135
Fair practice of recruitment and capacity development have helped the staff to maintain high morale and perform better
702
123
Technical 68 Corporate 44 Supplies & Stores 11
Operations
130
Air Crew 61 Cabin Crew 46 Flight Operation 23
Mr. Khagendra Basnet HRD
13
everest experience
B
uddha Air offers best mountain flights at an altitude between 7,500 and 8,500 meters. These flights provide an opportunity to our valued passengers to enjoy close-up views of nine majestic peaks in the world. Within few minutes of taking off from Kathmandu airport, amazing panorama of snow-clad mountains in the Himalayas can be viewed from the window of the aircraft. Excitement reaches its peak when passengers get
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the mesmerizing view of the Mt. Everest, the highest mountain in the world. Many cherish this moment throughout their lives. Buddha Air has flown over 501,012 passengers under mountain flights during the last 15 years.
Mountain Flight offered me the opportunity to have heavenly feeling as if I was embracing majestic Mt. Everest A mountain flight passenger
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cSR
Accepting Responsibility
We take effective steps toward building a prosperous Nepal As a responsible business organization, Buddha Air has taken Corporate Social Responsibility (CSR) very seriously and has recognized that social, economic and environmental responsibilities are integral to its corporate cultural. As a part of wide ranges of its CSR activities, Buddha Air has been assisting Nepal Krishi Company (NKC)—a non-profit organization established in 2012 that has been supporting farmers’ cooperatives in Eastern Nepal—to increase agricultural outputs and increase income of farmers through farm mechanization. Promoting cooperative farming through mechanization, improving productivity through sustainable farming, consolidating fragmented land, providing access to cheaper
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loan, providing market opportunity and storage for farm produces, supporting advocacy groups for creation of farmer friendly policies, providing appropriate technology and enhancing farmers’ capacity are among the major objectives of NKC. NKC has been supporting farmers associated with 2,300 households through their 23 co-operatives in Jhapa, Morang and Sunsari districts. The farmers are being taught to adopt farm mechanization techniques in around 7,500 acres of land. With the support from Buddha Air, NKC has also been extending support to build strategic plans, conduct mentoring activities and provide technical expertise required for the formation of cooperatives, besides helping farmers secure loan to purchase mechanical implements.
We believe that CSR is not merely the donations and sponsorships; it is a demonstration of wider responsibility as corporate body for the contribution to wider welfare of the society
HIGHEST Tax Payer Award
Buddha Air was recognized by the government as "Highest Income Tax Payer in Tourism Industry" in the year 2012.
Head Office: 2167, Kathmandu, Nepal, 977-1-5521015 Fax: 977-1-5537726 Email: buddhaair@buddhaair.com City Sales Office Hattisar, Kathmandu
977-1-4437025, 4437677, Fax: 977-1-4436033
www.buddhaair.com
Buddha Air