Aviation Sector in Nepal: Prospects and Challenges

Bhaban Bhatta Chairman

History
1949 - First Beach-craft Bonanza landed at Gauchar 1950 First charter flight by Himalayan Aviation Dakota from Gauchar to Kolkata (by private sector) 1957 Department of Civil Aviation founded 1958 RNAC started scheduled services 1992 Adoption of liberal aviation policy / private sector enters the industry 2005 Two private operators start international operation 2012 BB Airways commencing its flight/The only private sector international airlines from Nepal

Air Traffic growth

27 lakh passengers moved from TIA in 2011 as against 24 lakhs of 2010 Only 8.5 lakh passengers were moved in 2002 22792 flights in 2011 against 19417 of 2010 Only 6884 flights in 2002 13486 tons cargo in 2011 against 14022 tons in 2010 Only 12685 tons in 2002

Nepal and Airline business at present

Airlines in Nepal RA U4 YT TB N6 -Nepal Airlines Buddha Air Yeti Airlines Tara Air Alpine Air Transport Guna Airlines AG -G1 --Agni Air Fying Dragon Airlines Gorka Airlines Shree Airlines Sita Air

Except Nepal Airlines, no any airlines can operate international air transport services.

Foreign flag carriers operating to/from Kathmandu

Following foreign flag carriers are operating to/from Kathmandu. They are unrivaled, as Nepal Airlines cannot operate on same terms against those International Airlines
1)Air China 2)China Eastern Airlines 3)China Southern Airlines 4)Dragon Air 5)India Airlines 6)Jet Airways 7)Jetlite Airways 8)King Fisher 9)Spiece jet Airlines 10)Bahrain Air 11)Gulf Air 12)Biman Bangladesh 13)GMG Air 14)United Airways CCA CES CSN HDA IAC JAI JLL KFR SEJ BAR GFA BBC GMG UBD China China China China India India India India India Bahrain Bahrain Bangladesh Bangladesh Bangladesh 15)Druk Air 16)Ethiad Airways 17)Fly Dubai 18)Air Arabia 19)Pakistan Int'l Airlines 20)Qatar Airways 21)Silk Air 22)Thai Airways Intl 23)Oman Air 24)Arke Fly 25)Air Asia 26)Korean Airlines 27)Jordan Aviation DRK ETD FDB ABY PIA QTR SRK THA OMA TFL AXM KAL JAV Butan UAE UAE UAE Pakistan Qatar Singapore Thai Oman Newtherlands Malaysia South Korea Jordan

Bottle-necks in aviation
Not enough space for aircraft parking Difficulty for bigger planes to land in the airport 3 baggage carrousels are not sufficient Custom area and the free areas are not sufficient Not enough space for people coming to pick-up their guests Insufficient taxi stands and parking High visa fees

Costly airport
Nepal airport is one of the costliest airports Fuel is about 45% more expensive than global price Ground handling is one of the most expensive Airport fees are way too much Landing and take-off fees are also very high

Tourism affected
We have not been able to attract more than half a million tourists The airport is not able to handle any more flights to bring-in more tourists The immigration and other services are not very friendly to tourists Tourists are forced to take old taxis due to cartel in the airport Hoteliers have nasty competitions to attract tourists who have not booked hotels

New Developments
Second international airport at Nijgadh, Bara is announced Improvements works are in the process Being supported by Asian Development Bank A strong move is going on for Pokhara regional airport Chinese EXIM bank has agreed to provide loan Some Chinese parties have been selected There is some debate on the cost of the project

Challenges Safety and security Lack of infrastructure Lack of systems for smooth flow of passengers Customs, Immigration and other problems

Private sector in Intl flight

Buddha Air has started some regional flights/but not regular Yeti Air commenced some international flights but stopped Air Nepal brought the plane but collapsed Alpine Air could not continue their flights BB Airways is the new entrant

BB Airways a new entrant

We understand the past events We see the future prospects We are determined to make it happen Our team is all set to establish a reliable Nepali airline We are here to meet the expectations of Nepalis living around the world We want to create a truly Nepali airline

VISION
Building the nation by bridging the world

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Mission
Become the ambassador of Nepal Build Nepals image as the country of quality and reliability Be a leader in the economic growth of Nepal Bridging the Asian countries to Nepal prominent regional airlines in the beginning and expanding its network to Far East and Europe within five years of operations.

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Yes we are taking off

ICAO codeBBW

IATA codeBO

Inaugural Flight to Kuala Lumpur On 11th October, 2012

Received Air Operating Certificate: April 12, 2012 14

License for Operation

Aircraft specification B757-200ER: 8C / 194Y seats & cargo space 5 ton

Sector: Frequency Kuala Lumpur 5 2 Aircraft:B757-200 ER Bangkok 3 Hong Kong 4 Singapore 3 Doha 7 Tokyo 2 Delhi 7
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Beginning with
Sector Frequency Kuala Lumpur 4 Hong Kong 3 Cambodia (charter) 1 Narita (Charter) 2 Days Wed, Thu, Sat, Sun Mon, Fri, Sun Thu Tue, Fri

Flight Frequencies are per week Aircraft Monthly Utilization 300 Hours

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1st & 2nd Year of Operations

Sector Frequency Kuala Lumpur 4 Bangkok 3 Hong Kong 3 Singapore 3 Doha 4 Charter Operation: Narita & Taipei 2,2 Flights/Wk Frequency is weekly Two B757-200 ER Aircraft in flight Aircraft Monthly Utilization 600 Hours
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Program for 3rd & 4th Years

BB Airways will add two B767 Aircraft Additional Routes: Shanghai Frankfurt London Seoul Lhasa
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Board Chairman Bhaban Bhatta CEO Shisheer Bhatta Prateek Pradhan

Administration Mitali Gosh

COO H.B.Shrestha

Finance Sudhir Sharma

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Our team our pride

Chief Operating Officer (COO)
Operation Department(Capt.B.M.Amatay) Engineering Department(Er.P.B.Kansakar) Flight Safety & Quality Control(Er.B.Gautam) IT & Corporate Department(P.Wagley) Commercial Department(Durgesh Dali)

Customer Services(Shanta Shrestha)

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We believe in partnership
Lets all build our nation together Its more about Nepali and Nepal than a

business venture of an individual

Your involvement will make this endeavor a success We are here to be partner in every step
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Photo

Courtesy call to Nepal government at Prime Minister Office

TonleSap Airlines BB Airways Sister airline agreement

Aircraft Lease Agreement with TonleSap Airlines

Chariman chats with Cabin attendants

Nepalese team at BB Airways Head Office Kathmandu

Courtesy call at Tribhuvan Airport Administrator

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