Buddha Air Pvt. Ltd. Company profile for the year 2013-2014

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]

1

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.

8

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.

10

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

11

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

14

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

15

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

16

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