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

PROFILECOMPANY

2013

/14

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.

Buddha aIR

ABOUT US

Year of operation11.10.1997

executive chairmanSurendra Bahadur Basnet

managing DirectorBirendra Bahadur Basnet

tYpe of BuSineSSintl./Domestic | Schedule flight operator

tYpe of aircraftSBeech 1900D | atr 42-320 | atr 72-500

no. of aircraftSnine [3 aircrafts of each category]

1

Dhangadhi

Nepalgunj

BhairahawaBharatpur

SimaraJanakpur

Biratnagar Bhadrapur

Tumlingtar

Mt. EverestKATHMANDU

Pokhara

Paro, Bhutan

Varanasi, India

Fishtail & Annapurna

Chartered Flights

deSTinATiOnS

KATHMANDU

POKHARA LUMBINI [BHAIRAHAWA] JANAKPUR

NEPALGUNJ BHADRAPUR BHARATPUR [CHITWAN]

BIRATNAGAR DHANAGADHI

PARO [BHUTAN] VARANASI [INDIA]

TUMLINGTAR

SIMARA/BIRGUNJ

2

ATR-72-500

Widely

appreciated

as one of the

best regional

aircraft in the

world, ATR-72 is the enhanced

form of ATR 42 with expanded

seating capacity of 72 from

47. Buddha Air currently

has three ATR-72 aircraft in

operation. Along with safety, the

aircraft is popular for its cost-

effectiveness in operation and

environment friendly features.

More than 1,000 such aircrafts

have been manufactured till

date.

Beech 1900 D

It is on the choice list of

the American Aircraft

Pilots’ Association.

Manufactured by the

US-based Hawker

Beechcraft, this 18-seater

is safe, comfortable and

reliable. Powered by two

powerful Pratt & Whitney

PT6A-67D turboprop

engines, Beechcraft

1900D is widely accepted

as one of the best

airplanes in the world.

ATR-42-320

Three 47-seater ATR-

42-320 aircraft owned

by Buddha Air are also

widely accepted aircraft.

Buddha Air has been

successful in providing

affordable services to

Nepali passengers with

the addition of these

aircrafts to its fleet.

Adapting to rapidly

evolving competitive

market, Buddha Air

brought these aircrafts

by securing loan worth

US$ 16.9 million from

the International Finance

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 include three 18-seater Beech 1900 D,

three 47-seater ATR-42 and three 72-seater ATR 72-500.

AiRCRAFTS

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

33

Our strong dominance in the market will be further strengthened with better services

Mr. Rupesh JoshiSales & Marketing

SALeS & MARKeTinG

As 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 ever-

increasing 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)

65.67%Buddha Air

31.95%Yeti Airlines

0.14%Agni Air 2.24%

Guna Air/Simrik

(Buddha Air-operated sectors only)

4

We are committed to expanding our market share to 70 percent

in the year 2013/14 from existing around 65 percent

Total Passengers Comparison2012-2013 (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 00/0199/00 01/02 03/0402/03 04/05 06/0705/06 07/08 09/1008/0998/9997/98 10/11 11/12 12/13

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.

1,00,893Royal Club Gold

CaRd membeRs

7,301Platinum membeRs

Number of Flights Comparison2012-2013 (projected data based on 10.5 months actual data)

14433

21018

23764

3916

7582

22198

9476

2302123835

10674

21199

19788

11210

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

22341 22266

11/12

23529

12/13

6

Buddha 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.

MAnAGeMenT inFORMATiOn SYSTeM

Mr. Rajin RanjitMISApplication of fully computerised

system in information management is our strength

7

Our state-of-the 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.

hAnGAR

l Built at a cost of US $ 2.5 million, the hangar expands over an area of almost 37,000 square feet.

l Only facility of its kind in Nepal and amongst a very few in South Asia.

l Capacity to accommodate Airbus 320 or Boeing 737.

l Ground floor has workshops, technical stores and base maintenance office.

l First Floor features Technical and Operations Department along with a meeting room and central server room.

l Second Floor with an in-house canteen features one meeting room, a class room for 45 persons and one library each for Operations and Technical Department.

FEATURES OF HANGAR

Achievements in maintenance Installation of Multi-purpose Computer (MPC) and Weather Radar Model Primus 660 in 9N-AJS 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.

8

11page

TeChniCAL

Mr. Mangesh ThapaTechnical

The 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

9

OPeRATiOn

Buddha 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.

Mr. Subarna KharelOperation

Qualified cabin crew and cockpit crew members are our valuable assets for our excellence in service

Buddha Air’s ATR and Beech aircraft are

powered by Pratt & Whitney Canada engines.

Under our supervision, they have an impeccable

maintenance and safety record, not only in Nepal

but across the South Asia region.

n Mr. Vellu Venu

Regional Sales Manager, Pratt & Whitney Canada

10

Safety Measures- IOSAEnhancing 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

Buddha Air has been classified as a very safe operator and we

have provided the ATR-72 on lease purchase option. This is a

very rare opportunity given only to highly rated operators who

have structured and periodic audit, engineering and operations

management monitored by us.

n Mr. Jean-Luc Establie

Sales Director, ATR Company

11

12page

FinAnCe & ReVenUe

Our efficient financing system has won the

trust of domestic and global lending

agencies

Mr. Ramesh LuitelFinance

With 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

Details of Direct & inDirect taxPeriod from 2005/06 to 2011 / UPto 31 March 2012

INdIRECT TAx(CUSTOM, VAT & TDS)

dIRECT TAx(CORP.)

2,63,42,963

3,12,10,868

4,04,84,484

79,36,608

04-05 05-06 06-07 07-08 08-09 09-10 10-11

63,80,445

4,88,98,108 4,65,00,000

5,79,14,3176,54,55,000

7,95,55,2689,56,74,197

10,77,37,953

15,90,41,802

14,71,93,838

11-12

4,33,16,289

17,80,63,646

12-13

37,080,737

20,97,59,602

5,00,00,000

2,50,00,000

2,00,00,000

1,50,00,000

1,00,00,000

0

reVenUe coMParison2012-2013 (projected data based on 10.5 months actual data)

1543255853

2192320921 2017829931

2517075652

3233190502

07/08 08/09 09/10

(in nPr)

10/11 11/12

recognized with the ‘Largest Taxpayer in the Tourism Industry’ award by the government in 2012.

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 was Rs 37.08 million and we paid indirect tax of Rs. 20.97 million till March 2012.

Mr. Ganesh Raj LohaniRevenue

Backed by increasing trust of valued customers, we are able to maintain sustained growth in revenue

4400500641

12/13

12

Mr. Khagendra BasnetHRD

hRd

Operations 130

Air Crew 61Cabin Crew 46Flight Operation 23

Buddha 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.

Fair practice of recruitment and capacity development have helped the staff to maintain high morale and perform better

Total Staff

702Marketing 290

Corporate 5TIA 89Cargo 13Public Relation 6City Sales 14Sundhara Sales 4Jawalakhel Sales 6Reservation 18

Outstation 135

Technical 123

Technical 68Corporate 44Supplies & Stores 11

General Service 93

Corporate 8TIA 29Transport 56 HRd 21

QMS 13

REVENUE 19

FINANCE 13

13

Buddha 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

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.

eVeReST exPeRienCe

14

Mountain Flight offered me the opportunity to

have heavenly feeling as if I was embracing majestic

Mt. EverestA mOUNTAiN FliGhT pASSeNGer

15

CSR

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

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.

Accepting ResponsibilityWe take effective steps toward building a prosperous Nepal

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 society16

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, 977-1-5521015Fax: 977-1-5537726 Email: buddhaair@buddhaair.com

City Sales Office Hattisar, Kathmandu

977-1-4437025, 4437677, Fax: 977-1-4436033

Buddha Air

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