Buddha Air Company Profile 2017

www.buddhaair.com

Buddha Air 1 9

Y e a r s

o f

T r u s t e d

F l y i n g

C O M P A N Y 20 P ROFILE 17

facebook.com/buddhaair

@airbuddha

@buddhaairnepal

page

company summary

02

Year of Operation

11.10.1997

Executive Chairman

Surendra Bahadur Basnet

Managing Director

Birendra Bahadur Basnet

Type of Business

International/ Domestic Schedule Flight Operator No. of Aircrafts

EIGHT

Types of Aircrafts

Beech 1900 D / ATR 42-320 ATR 72-500

W

e are the largest privately owned airlines in Nepal with the vision to provide the safest, most reliable and comfortable

means of air transport. We fly to 13 domestic destinations daily and to international destinations like Varanasi, India, and chartered flights to Paro, Bhutan.

Since our inception in 1997, our consistent quality service and attention to safety win over the trust, respect and confidence of our passengers. With almost two decades of experienced flying, we occupy a major market share in Nepal’s domestic aviation sector.

page

03

Beech1900D • Manufactured by Raytheon Aircraft Company (now Hawker Beechcraft) based in the USA. • Powered by two Pratt & Whitney PT6A turboprop engines • Full stand-up cabin height, allows passengers and crew to walk with ease

ATR 42-320 • Manufactured by Avions De Transport Regional (ATR) a joint venture of France and Italy.

• Twin turboprop aircraft powered by Pratt & Whitney Canada PW121 engines, developed for efficient performance • Equipped with handrail to facilitate passenger and crew movement.

• Large overhead cabins and windows for optimized viewing.

• Ergonomically designed seats are spacious and comfortable.

ATR 72-500 • Regarded as one of the best costeffective regional aircraft.

• Modernized new look, spacious passenger cabins and ergonomic leather seats • Comfortable aircraft for regional operations.

• Environmentally friendly – emits less than 50% carbon dioxide per passenger kilometers than its competitors.

page

Marketing

dhangadhi

Fishtail & Annapurna Flight

04

Pokha

ra

nepalgunj

bha

iraha

KATHMANDU

wa

Everest Experience Flight

r

atpu

bhar

simara

ur

janakp

gar

biratna

varanasi India

Airlines Market Share Comparison 2015-2016

ines

Other Airl

T

he efforts from Buddha Air’s Sales and Marketing team has earned the trust and confidence of its valued customers by promising to provide the safest and most reliable flights to the sectors Buddha Air operates in. Securing a foothold of nearly 61% of the market share in the domestic pressurized aircraft segment; Buddha Air has the image of a credible airline that provides high quality service with optimized efficiency.

PARO Bhutan

tumlingtar

61.03% Buddha Air

(Buddha Air operated sectors only)

r

rapu

bhad

Chartered Flights

page 23835

Number of Flights Comparison

23021

21199

22198

23764

22341

05

22266 23269 21319

21018

19788

18793 18696

1997/98-2013/14 14433

10674

11210

9476 7582

3916 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

13/14

14/15

15/16

Total Passengers Comparison 1997/98 — 2015-2016 1,000,000 900,000

Royal Club is Buddha Air’s Frequent Flyer Program designed to reward the members.

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

13/14

14/15

15/16

Our Royal Club members are rewarded with mileage points which can be redeemed for free tickets, gift vouchers, preferential services, extra baggage allowance, etc. Our partnerships with global and local brands allow mileage points to be redeemed for gift vouchers and discounts.

At Buddha Air, we offer two tiers of Royal Club Membership; Royal Club Gold and Royal Club Platinum. Royal Club Gold members are flyers who have signed up for our frequent flyer program and Royal Club Platinum is an upgrade status of Gold membership.

8,225 Platinum Members

1,19,820 Royal Club Gold Card members

page

Hangar

O

06

ur state-of-the-art closed door hangar facility is an architectural engineering achievement.

We are the only airlines in Nepal to have an

international standard hangar that is certified part 145 Aircraft Maintenance Organization from Civil Aviation Authority of Nepal (CAAN).

Built at a cost of US$ 2.5 million, it occupies an area of 37,000 square feet at Tribhuwan International Airport. The finance to construct our hangar and to purchase two ATR 42-320s was done by IFC – World Bank after fulfilling all their stringent criteria including anti-money laundering.

The 280-ton steel structure with 38 meters clear span and eight electrically powered doors allow for maintenance, repairs, inspections and audits to be carried out.

We have aircraft spares inventory worth close to US$10 million stored in an international standard storage facility. All spare parts and components purchased

and

used

are

Federal

Aviation

Administration (FAA) and European Aviation Safety Agency (EASA) certified.

Our hangar was awarded the IPMA Project Excellence Award in Medium and Big Sized Projects in 2014.

IPMA Project Excellence Award – Buddha Air’s Hangar Construction nominated as a Finalist in Medium and Big Sized Projects in the year 2014.

page

T

he operation department of Buddha Air is responsible for flight safety, accident prevention and the training of the crew members. Safety is always a top priority of Buddha Air. This department ensures that flights are operated and the crew members are trained

07

as per the requirements of Civil Aviation Authority of Nepal (CAAN). Buddha Air spends around US$ 600,000 annually on skill-enhancement activities of its crew members for trainings and required refreshers in dedicated six axis simulators.

NOVOAIR Maintenance Agreement We signed a maintenance agreement with NOVOAIR - the

“This agreement will help and boost

premium and largest private airline of Bangladesh on 25th

the safety of the airlines and strengthen

January 2016 at our hangar facility. The agreement is the first

the relationship between Nepal &

of its kind to be made in Nepal’s aviation history.

Bangladesh.”

We will carry out line and base maintenance of NOVOAIR’s

Mofizur Rahman

ATR 72-500 fleets. We have been granted permission from

Managing Director, NOVOAIR

CAAN and Civil Aviation Authority of Bangladesh (CAAB) “Nepal benefits from this agreement as Two certified engineers from Buddha Air will be placed in

local manpower will get jobs and the

Dhaka for all line maintenance of NOVOAIR’s ATR aircraft

country earns foreign currency.”

while base maintenance will be performed at our hangar.

Birendra Bahadur Basnet

We also signed an agreement to provide one Instructor Pilot

Managing Director, Buddha Air

and two Pilots-in-Command and two First Officers of ATR 72500 to fly with NOVOAIR.

I

page

technical

08

t is located at Buddha Air’s

 Maintenance activities are

Hangar, where maintenance

closely coordinated and

work, checks and inspections

include troubleshooting,

of the aircrafts are performed

defect rectification,

– maintaining the aircrafts in an

component replacement,

airworthy condition. The major

visual inspections, and

tasks performed by qualified and

servicing.

certified staff are: • Base maintenance • Line maintenance:  This is a routine maintenance

 This planned and heavy maintenance requires

done in between all flights,

Buddha Air’s aircrafts to be

ensuring that Buddha

out of traffic.

Air’s aircrafts are in worthy condition for its intended flight.

 Includes major modifications, repairs, and upgrades.  Buddha Air was the first to do 36000 cycle checks for its ATR

The current Inventory

(in terms of category and values only) of Technical Stores Fixed Assets Rotables : NRs 488,191,930.88

(US$ 5,138,862.43) Tools and Ground/Test Equipment:

NRs 123,159,517.26

(US$ 1,296,415.97) Current AssetsExpendables, commercials and lubricants: NRs 410,321,433.98

(US$ 4,319,172.98) Grand Total: NRs. 1,021,672,882.12

(US$ 10,754,451.39)

fleet.  Successful installation of Global Navigation Satellite System (GNSS) and Multiple Purpose Computerized System (MPCS) in all its fleet.  Enhanced Ground Proximity Warning System installed on August for its Beechcrafts.

and Supplies l a ic n h c • Te ment Manage y r o t n e Inv

s keep ined staff a tr ll e W

• d with equippe re o st e th ts that mee inventory the r ements fo all requir e fleet. nce of th maintena ished is well furn n io is iv D • es ge faciliti with stora h ipped wit and equ es like air applianc idity m u h ers, condition achines, control m ter, etc hygrome d arent an • Transp entory v in ical econom ment manage

page

09

safety

Safety Our Priority

W

e have never compromised on safety and are always committed to achieving world-class safety standards. In our daily flight operations, the safety of our passengers and employees is of paramount importance.

Our employees contribute to and fulfill the roles and responsibilities they have towards safety management.

They work in a comprehensive and responsive manner, ensuring that safety policies and objectives are met.

For the development of continuous safety culture, our Corporate Safety Department through Safety Management Systems (SMS) ensures

that safety objectives are met by assurance and promotion of safety.

Our Quality Management Department (QMD) strengthens the work process, corporate governance, customer service and quality output in all of our departments and outstations through internal audits.

We have received the highest level of safety performance by systematically managing the risks associated with flight operations, ground handling operations and engineering and maintenance activities. Our IATA credited compliance managers and auditors perform scheduled audits to ensure continued compliances with regulatory requirements and company’s standards and procedures.

Aviation and Marine Solutions International (AvMaSSI) performed a comprehensive Operational Safety Audit (OSA) from 21st to 25th July 2014. Different functional areas of our flight operations, aircraft engineering and maintenance, cabin operations, ground handling, dispatch, cargo, organization and security management were assessed against best practices based on International Civil Aviation Authority (ICAO) and International Operational Safety Audit (IOSA) annexes.

We received a certification for the “Recognition of Completion� of the AvMaSSI OSA program on 15th April 2016.

page

Our People

10 Staff & Department

T

he commitment and dedication from our employees have strengthened our reputation of a reliable, safe and comfortable airline that provides exceptional service. We employ 798 people who provide the best service possible to every passenger.

All of our departments and outstations coordinate their efforts for a seamless operation.

We provide equal opportunities for all our employees for their career progression.

Our employees are regularly sent for training programmes and seminars. As they are instrumental to our success, we have designed and provided incentive rewards for their hard work and continuous dedication.

Making the journey in the skies smooth and pleasant are our qualified and well

8 HRD 103 GSD

13 MIS/QMS

19 REVENUE 176 TECHNICAL

13 FINANCE

136 OPERATION 2

16 SECURITY

170 SALES & MARKETING 139

CORPORATE SAFETY

Crew Training Compliance

OUT-STATION Total Staff 798

REVENUE COMPARISON (NRs.) 2011/12—2015/16

4,694,919,228 4,364,311,466

4,301,669,662

4,337,107,528

3,233,190,502

Yr. 11/12

Yr. 12/13

Yr. 13/14

Yr. 14/15

Yr. 15/16

trained cabin and cockpit crew. Their passion to fly and commitment to serve never falter. We spend around US$600,000 on skill enhancement activities of our crew for refresher trainings, flight checks and simulator training programs. Our captains for the Beech 1900D, ATR 42-320 and ATR 72-500 have at least 3,000 hours experience respectively.

Securing a foothold of nearly 60% of the market share in the domestic pressurized segment, we have an image of a credible airline that provides high-quality service with optimized efficiency. Our marketing team has ensured that passengers get the best service possible.

Our qualified and certified technicians and engineers perform and help with maintenance, repairs, safety inspections and audits to maintain our fleet in an airworthy condition.

Their major tasks include: • Performing routine line maintenance in between all flights. It includes

1 2

Details of Direct & Indirect Tax Indirect Tax

Period from 2004/05 to 2013/2014

(CUSTOM, VAT & TDS)

3,00,00,000

direct Tax (CORP.)

27,12,15,155

25,54,48,360

2,50,00,000

24,41,95,672

(Provisional)

20,97,59,602 2,00,00,000

17,80,63,646

14,81,26,942

1,50,00,000

12,87,74,684 10,77,37,953 9,56,74,197

1,00,00,000

7,95,55,268 5,79,14,317

6,54,55,000 5,05,15,389

7,70,00,000

(Provisional)

5,83,80,251

3,12,10,868 2,12,00,487

79,36,608

0 04-05

3,38,45,334

3,21,98,655

63,80,445

•

4,17,31,563

4,04,84,484

5,00,00,000

•

6,15,00,000

05-06

06-07

07-08

08-09

daily inspections, defect rectification, component replacement, visual inspections and servicing of our fleet A yearly scheduled base maintenance up to C Checks. This may include modifications, repairs and upgrades.

Managing inventory and the proper storage of US$10 million worth of technical supplies. Our storage facility is well equipped with appliances such as air conditioners,

09-10

10-11

11-12

Government of Nepal - Recognized by the Government as Highest Income Tax Payer in Aviation Sector 2013-14

12-13

13-14

14-15

15-16

humidity control machines, hydrometer, etc.

Furthermore, our engineers are sent for training in Thailand, Singapore, USA and Europe as per regulatory requirements.

Our Finance and Revenue departments collaborate their efforts, ensuring that financial plans and policies are developed and implemented in relation to our objectives. They work closely with internal and external auditors to maintain clean and transparent audit records.

Our maiden flight was an Everest Experience mountain flight on 11 October 1997. This commemorative flight set in motion our 19 year long journey as a preferred domestic airline of Nepal.

Our Everest Experience gives you an exclusive up close view of the majestic Himalayas, including the world’s tallest mountain – Everest.

From a guaranteed window seat, you will get panoramic views of the Himalayas and glaciers of Nepal.

Our Everest Experience Mountain Flight was awarded the “Certificate of Excellence” by TripAdvisor®

page

everest experience

13

page

Buddha Holidays

14

Plan your perfect holiday in Nepal and Varanasi with Buddha Holidays, a fully owned subsidiary of Buddha Air. Established with a vision to provide the best travel experience, Buddha Holidays specializes in providing travel packages at the most affordable prices. It promises to deliver on the sights and activities mentioned in its itineraries.

Recognizing the religious connection between the ancient cities of Kathmandu and Varanasi, Buddha Air has been operating flights to Varanasi for five years. These cities hold immense religious values for Hindus and Buddhists. Varanasi is a place for salvation for Hindus. Lord Buddha attained enlightenment at Bodhgaya and gave his first sermon at Sarnath.

In collaboration with Buddha Air, Buddha Holidays offers two pilgrimage tour packages; Classic Kashi and On Buddha’s Trail. Some of the places included in these itineraries are Varanasi, Sarnath, Bodhgaya, etc.

page

A

15

philanthropy

s a leading domestic airline of Nepal, we firmly believe

the rural farmers to increase their cereal crop yields. This

and are committed to contributing to a better and

is done through innovative and appropriate technology

sustainable environment. We understand that we should

transfer, reducing cost of production, loss and wastage

be instrumental to transformative changes that help the

and increase in productivity of crop yields. This addresses

economy of Nepal.

the food grain crisis.

In recent years, the agricultural sector of Nepal has

Through Nepal Krishi Company, a non-profit

been experiencing fragmented cereal crop farmland

organization, we have been able to solve these

ownership, flight of agricultural labor and non availability of

problems by organizing small farmers into scale economy

cheap working capital. These problems have cumulated in

cooperatives that provide solutions to the above

decreased productivity and unsustainable farming.

mentioned problems.

Our Corporate Social Responsibility is aimed at assisting

• Donated Rs. 8, 46,000 to the associated agricultural cooperatives of Nepal Krishi Company for the purpose of proper grain storage • Nepal experienced a devastating 7.9 magnitude earthquake. We delivered relief goods like tents and medicines to the sectors we operate in.

• A total donation of Rs 15,001,853 was made on behalf of the company, our employees and our business associates to SEBS Disaster Relief Fund.

• In coordination with the Society of Ex-Budhanilkantha Students (SEBS), we have donated Rs.50, 000 to for earthquake relief and also donated tents and rice to the earthquake victims in Sindhupalchowk.

w w w . b u d d h a a i r. c o m

h i g h l i g ht s l

We paid off a 10 year

and Marine Safety

long term loan of US$10

Solutions International

million provided by

(AvMaSSI) Operational

IFC World Bank for the

Safety Audit (OSA) on 15

construction of a state

April 2016.

of the art hangar facility and to purchase two ATR

l

Holiday packages

42-320s. We were able to pay off this loan two and

l

l

Successful completion of

a half years in advance

our ATR 72-320 test flights

regardless of challenges.

to Tumlingtar.

We are the first ones in

l

Nepal to sign an aircraft maintenance agreement with NOVOAIR – Bangladesh’s largest and premium private airlines.

The agreement signed at our hangar facility on 25th January 2016. l

Flights to Varanasi and

Passenger load capacity improvements

l

Launched our official app, free to download on Android and iOS. Through the app, you can book flights, check your Royal Club Mileage points, etc.

We successfully completed an Aviation

Head Office: P.O.Box 2167, Kathmandu, Nepal, Telephone: 977-1-5521015, Fax: 977-1-5537726 Email: buddhaair@buddhaair.com City Sales Office Hattisar, Kathmandu, Telephone: 977-1-4437025, 4437677, Fax: 977-1-4436033

Photographed by: Hemant Shrestha

Buddha Air