Buddha Air Company Profile 2019

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

22 Y EA RS O F T R U ST E D F LY I N G

COMPANY P R O F I L E

2 0 1 9

buddhaair@buddhaair.com 977-1-5521015 Jawalakhel, Lalitpur, Nepal

Buddha Air

ABOUT US

Buddha Air started its operations on 11 October 1997 and since then has been the trendsetter in Nepali civil aviation.

We fly to 16 domestic sectors in Nepal and 2 international destinations in India. In our 22 years of trusted flying, we have flown over 12 million passengers.

Our current market share is 53.56% and our balance sheet has been in profit continuously for the past 17 years.

Surkhet Pokhara Mountain Flight Everest Experience Flight

Tumlingtar

Pokhara

Dhangadhi

Kathmandu

Nepalgunj Bhairahawa

Bhadrapur Bharatpur Simara Janakpurdham Biratnagar

Varanasi, India

Kolkata, India

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2019 2018

SEP 2017 Started direct flights between Pokhara and Bhairahawa and Pokhara and Bharatpur

MAR 2018 Expanded the fleet to include ATR 72-500 9N-AMF

2017

MAR 2017 Expanded the fleet to include ATR 72-500 9N-AMD

MAR 2019 Expanded the fleet to include ATR 72-500 9N-AMY MAY 2019 Started flights between Kathmandu and Kolkata.

AUG 2018 Expanded the fleet to include ATR 72-500 9N-AMU

2016 APR 2016 Successfully completed the AvMaSSI OSA program comprising of a harmonized series of international practices based on ICAO Annexes

2014 OCT 2014 Buddha Air Hangar Construction Project won IPMA Excellence Award

OCT 2014

2012

SEPT 2012 Expanded the fleet to include ATR 72500 9N-AJX

2011 SEPT 2011

2010

Expanded the fleet to include ATR 72500 (9N-AJS)

AUG 2010 Began first international flight to Paro, Bhutan

2009 2008

OCT 1997 First Flight Took Off on a Beech 1900D (9N-AEE)

1997 1996 APR 1996 Registered Buddha Air Pvt.Ltd

JUL 2010 Expanded the fleet to include our first ATR 72-500 (9N-AJO)

MAY 2009 Bought the third ATR 42-320

AUG 2008 IFC World Bank provided a 10 year long term loan of US$10 million for hangar construction and to purchase two ATR 42-320s.

SEPT 2008 Expanded the fleet to include ATR 42-320.

We care for the environment and strive to manage the environmental impact of our operations. That is why we prefer to operate the fuel-efficient ATR aircraft. The exceptional environmental performance allows for lower greenhouse gas and CO2 emissions.

Furthermore, fuel consumption is reduced by 50% per passenger kilometer compared to small aircrafts.

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FLEET ATR 72-500

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

BEECH 1900D

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

• Powered by Pratt & Whitney Canada engines PW121 engines.

• The ATR 72-500 is one of the best cost-efficient regional aircraft with turboprop engines

• It features large overhead bins, handrail for facilitation of cabin/crew passenger movement and comfortable and spacious cabins.

• We are the only private airline in Nepal to purchase a brand new straight-outof-the-factory pressurized Beech 1900D. • It is manufactured by Raytheon Aircraft Company (now Hawker Beech) based in USA. • It is the choice aircraft of the American Aircraft Pilots' Association Powered by Pratt & Whitney P767D turboprop engines.

• We have three ATR 42-320 aircrafts.

• We have two Beech 1900D aircrafts.

• The ATR 42-320 is a twin turboprop aircraft

• Powered by Pratt & Whitney PW127 engines • Capacity for 72 passengers • We have seven ATR 72-500 aircrafts in operation.

• Capacity for 47 passengers

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SAFETY IS OUR C U LT U R E SAFE OPERATIONS is our whole existence. Corporate Safety Department is the nerve center of the organization and we have invested huge financial and human resources.

1. OPERATIONS DEPARTMENT: Flying you safely to your destinations are our 43 captains and 37 first officers They are periodically sent for refresher training on designated fleet 6-axis simulators.

The crews are monitored through continuous audits

by Compliance Department and Flight Data Monitoring System.

n Our training department is focused on customizing syllabuses during simulators of trends that are identified during the last six months.

n We have 11 licensed flight dispatchers who are responsible for safe flight operations. Our

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dispatchers go to Bangkok for their annual refreshers.

n Our Engineering Operations Division creates and monitors the flight procedures in conjunction with the aircraft manufacturers.

2. TECHNICAL DEPARTMENT: We have a strength of over 170 employees out of 35 are engineers. All the relevant divisions of the technical department work in to maintain aircrafts as per their manuals from our line

maintenance office at the ramp site and our hangar as well as; well stocked bonded store with assets worth over US$16 million.

All Engineers are provided refresher trainings and our inhouse type training program allows creation of ample human resources.

3. GROUND OPERATIONS DEPARTMENT: Ensuring safety on the ground are our 322 employees stationed in all the destinations we operate in. From cargo/ baggage handling, ramp operations to minute weight calculations, every small detail is meticulously reviewed.

FDM

We are the sole domestic operator to voluntary incorporate Flight Data Monitoring System to continuously monitoring more than 216 flight parameters of the aircraft

HANGAR Our closed-door international standard hangar is certified Part 145 MRO (Maintenance, Repair and Overhaul) from the Civil Aviation Authority of Nepal. The hangar can accommodate one narrow body jetliner.

Any scheduled airliner must have a hangar facility for conducting checks and maintenances to uphold safety standards.

Besides conducting base maintenance of our fleet at the hangar, we conduct scheduled maintenance for Druk Air and NOVO Air.

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F LY L I K E R O Y A L T Y Our frequent flyer program, Royal Club, is the best way to reward our frequent flyer members and maintain customer loyalty.

Membership is free. The earned miles can be redeemed for free domestic flight tickets or to get vouchers to shop, dine or buy gifts.

We currently offer two different memberships: Royal Club Gold and Royal Club Platinum.

117,856

Airlines Market Share Comparison 2018-2019

lines

r Air Othe

8,545

53.36% Buddha Air

30669

ir )Buddha A

operated se

ctors only(

27295 23835

Number of Flights Comparison

30305

23021

21199

22198

23764

22341

22266 23269

21018

21319

18696 18793

13/14

14/15

19788

1997/98-2018/19 14433

10674

11210

9476 7582

3916 97/98

8

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

15/16

16/17

17/18

18/19

DETAILS OF DIRECT & INDIRECT TAX

476,264,060 INDIRECT TAX

Period from 2004/05 to 2018/2019

(CUSTOM, VAT & TDS)

400,000,000

DIRECT TAX

(CORP.)

350,000,000

344,770,052

300,000,000

274,310,759

255,448,360

250,000,000

30,00,00,000 292,252,557

300,000,000

256,990,312

210,000,000

209,759,602 200,000,000

178,063,646 171,500,000

148,126,942

150,000,000

128,774,684 107,737,953 95,674,197

100,000,000

134,000,000

79,555,268 57,914,317

78,380,251

65,455,000 41,731,563

50,000,000

40,484,484

50,515,389

31,210,868 33,845,334

32,198,655

6,380,445

21,200,487

7,936,608

0 04-05

05-06

06-07

07-08

08-09

09-10

10-11

11-12

12-13

13-14

14-15

15-16

16-17

17-18

18-19

Total Passengers Comparison 1997/98 — 2018-2019 1,500,000 1,400,000 1,300,000 1,200,000

1,100,000 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

13/14

14/15

15/16

16/17

17/18

18/19

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OUR TEAM

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CREATING THE BEST AND MOST DIVERSE NEPALI WORKFORCE From the moment passengers book their tickets to the time they arrive at their destinations, our employees work hard for their everlasting smiles. In the last 22 years, we have created the best and most diverse Nepali workforce of more than one thousand employees, who take the ownership of the Company. They are the sole reason behind our success.

Our personnel are always a step ahead in the market due to the continuous training and competence development programs to maintain the highest quality of service.

We make the highest investment in training among all the Nepali airline operators. We have invested a total of US$ 1,391,635 on technical and US$ 133,255 on non-technical training in the fiscal year 2018/19.

FINANCE

REVENUE

HUMAN RESOURCE

17 23

14

Total Staff

13

CORPORATE GOVERNANCE

135

GENERAL SERVICE

1007 GROUND OPERATIONS

322

FLIGHT OPERATIONS

194 170

SALES/ MKT

90

TECHNICAL

CENTRAL LIBRARY

6 3 1

16 AVIATION SECURITY

CORPORATE SAFETY

3 COMPLIANCE

CREW TRAINING

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EVEREST EXPERIENCE

On 11 October 1997, our maiden flight was a scenic Everest Experience mountain flight. This commemorative flight set in motion our successful journey of being the preferred domestic airlines for such sightseeing flights in Nepal.

The hour long flight departs in the morning from the domestic airport in Kathmandu.

Every passenger has a designated window seat where you can watch the majestic peaks like Everest, Makalu, Lhotse, etc roll by your aircraft window.

Our Everest Experience Mountain flight has been awarded the "Certificate of Excellence" by TripAdvisorÂŽ for three consecutive years: 2017, 2018 & 2019.

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CORPORATE SOCIAL RESPONSIBILITY Ensuring Others Have a Chance Too

Rice is our staple diet, but Nepal imports more than US$ 300 million worth every year, despite the country having the potential for paddy cultivation. A major issue here is due to fragmented farmland - where the average landholding is less than a hectare.

Our CSR has been investing to find an appropriate solution for this problem by creating the linkages from mechanizing the farming process, increasing the productivity and production cycle ( 9 tons per hectare) to drying and storage.

Farmers can warehouse to get the best rates for their produce. A pilot project is underway at Belbari Municipality, Morang, Nepal.

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So far, we have invested more than US$ 500,000 and many hours of leadership to pave the path towards a self-sustainable agriculture in the country.

FUTURE PLANS

1. We are adding two ATR72-500s (MSN 758 & 772)in August/ September 2019 to consolidate our current operation. This will create on-time dispatch reliability as one aircraft will be provisioned as spare for scheduled/unscheduled maintenance.

2. We are diversifying into Short Takeoff and Landing (STOL) operations to the remote destination of Nepal with non-pressurized aircrafts. This will be through a subsidiary of Buddha Air, which will hold majority stake and the remaining by personnel of Buddha Air. We plan to start this operation as soon as possible and

are currently in communication with aircraft manufacturers. We will create the required Safety Benchmark flowing from our current experience.

3. We have evaluated all the narrow body jets to start operation out of the upcoming Pokhara Regional International Airport and are currently testing the international market by operating to Kolkata from Kathmandu on our current fleet. Once we evaluate the risk factors and mitigate them from this experience, we will move ahead on starting commercial operations with jetliners from Pokhara.

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