www.buddhaair.com

22 YEARS OF TRUSTED FLYING

COMPANY PRO F IL E 2 0 1 9

[email protected] 977-1-5521015 Buddha Air Jawalakhel, Lalitpur, ABOUT US

Buddha Air started its operations on 11 October 1997 and since then has been a trendsetter in Nepali civil aviation. We fly to 15 domestic sectors in Nepal and 2 international destinations in . In our 22 years of trusted flying, we flew 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

Bhadrapur Bhairahawa Bharatpur Simara Janakpurdham

Varanasi, India

Kolkata, India 2 2019 MAR 2019 Expanded the fleet to include ATR 72-500 9N-AMY SEP 2017 2018 MAY 2019 Started flights between Started direct flights between Kathmandu and . Pokhara and Bhairahawa and Pokhara and Bharatpur MAR 2018 Expanded the fleet to MAR 2017 2017 include ATR 72-500 9N-AMF Expanded the fleet to include AUG 2018 ATR 72-500 9N-AMD Expanded the fleet to include ATR 72-500 9N-AMU 2016

APR 2016 Successfully completed the AvMaSSI OSA 2014 program comprising of a harmonized series of international practices based on ICAO Annexes OCT 2014 Buddha Air Hangar Construction OCT 2014 Project won IPMA 2012 Excellence Award

SEPT 2012 Expanded the fleet to include ATR 72- 2011 500 9N-AJX

JUL 2010 SEPT 2011 Expanded the fleet to include our Expanded the fleet 2010 first ATR 72-500 (9N-AJO) to include ATR 72- 500 (9N-AJS) AUG 2010 Began first international flight to Paro, 2009

MAY 2009 Bought the third ATR 42-320 OCT 1997 2008 First Flight Took Off on a Beech 1900D AUG 2008 (9N-AEE) IFC World Bank provided a 10 year long term loan 1997 of US$10 million for hangar construction and to purchase two ATR 42-320s. SEPT 2008 Expanded the fleet to 1996 include ATR 42-320. APR 1996 Registered Buddha Air Pvt.Ltd 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.

4 FLEET

ATR 72-500 ATR 42-320 BEECH 1900D

• Manufactured by Avions De Transport Regional (ATR) ajoint venture of France and Italy. • We are the only private in Nepal to purchase • The ATR 42-320 is a twin a brand new straight-out- turboprop aircraft of-the-factory pressurized Beech 1900D. • Manufactured by Avions De • Powered by Pratt & Whitney • It is manufactured by Transport Regional (ATR) a Canada engines PW121 Raytheon Aircraft Company joint venture of France and engines. (now Hawker Beech) based Italy. • Capacity for 47 passengers in USA. • The ATR 72-500 is one of the • It features large overhead • It is the choice aircraft of best cost-efficient regional bins, handrail for facilitation the American Aircraft Pilots' aircraft with turboprop engines of cabin/crew passenger Association Powered by Pratt • Powered by Pratt & Whitney movement and comfortable & Whitney P767D turboprop PW127 engines and spacious cabins. engines. • Capacity for 72 passengers • We have three ATR 42-320 • We have two Beech 1900D aircrafts. aircrafts. • We have seven ATR 72-500 aircrafts in operation.

5 SAFETY IS OUR CULTURE

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 dispatchers go to Bangkok maintenance office at the DEPARTMENT: Flying you for their annual refreshers. ramp site and our hangar as safely to your destinations are well as stocked bonded store our 43 captains and 37 first n Our Engineering with assets worth over $16 officers They are periodically Operations Division million. sent for refresher training creates and monitors on designated fleet 6-axis the flight procedures in All Engineers are provided simulators. conjunction with the aircraft refresher trainings and our in- manufacturers. house type training program The crew is monitored allows creation of ample through continuous audits 2. TECHNICAL DEPARTMENT: human resources. by Compliance Department We have a strength of over and Flight Data Monitoring 170 employees out of 35 are 3. GROUND OPERATIONS System. engineers. All the relevant DEPARTMENT: Ensuring divisions of the technical safety on the ground are our n Our training department department work in tandem 322 employees stationed is focused on customizing to maintain aircrafts as per in all the destinations we syllabuses during simulators their manuals from our line operate in. From cargo/ of trends that are identified baggage handling, ramp during the last six months. operations to minute weight calculations, n We have 11 licensed every small detail is flight dispatchers who are meticulously reviewed. responsible for safe flight operations. Our

6 FDM HANGAR Our closed-door international standard hangar is certified Part 145 MRO (Maintenance, Repair and Overhaul) from the Civil Aviation Authority We are the of Nepal. The hangar can sole domestic accommodate one narrow body jetliner. operator to voluntary Any scheduled airliner must incorporate have a hangar facility for Flight Data conducting checks and Monitoring maintenances to uphold System to safety standards. continuously monitoring more Besides conducting base maintenance of our fleet than 216 flight at the hangar, we conduct parameters of scheduled maintenance for the aircraft and NOVO Air.

7 FLY LIKE ROYALTY 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.

Airlines Market Share 117,856 Comparison 2018-2019 Other

8,545

53.36% Buddha Air

30669 30305

)Buddha Air operated sectors only( 27295

23835 23764 22266 23269 23021 22341 22198 18696 Number of Flights 21199 21319 21018 18793 Comparison 19788

1997/98-2018/19

14433

11210 10674 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 16/17 17/18 18/19 8 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

30,00,00,000 300,000,000 300,000,000 292,252,557 274,310,759

255,448,360 256,990,312 250,000,000

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 95,674,197 134,000,000 100,000,000 79,555,268 65,455,000 78,380,251 57,914,317 41,731,563 50,515,389 50,000,000 40,484,484 31,210,868 32,198,655 33,845,334 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 9 OUR TEAM

10 CREATING THE BEST AND MOST DIVERSE NEPALI WORKFORCE

From the moment passengers book their Our personnel are always a step ahead in tickets to the time they arrive at their the market due to the continuous training destinations, our employees work hard for and competence development programs to their everlasting smiles. In the last 22 years, maintain the highest quality of service.We we have created the best and most diverse make highest investment in training among all Nepali workforce of more than one thousand the Nepali airline operators.We have invested employees, who take the ownership of the a total of US$ 1,391,635 on technical and Company. They are the sole reason behind our US$ 133,255 on non-technical training in the success. fiscal year 2018/19.

FINANCE

17 REVENUE CORPORATE 23 13 GOVERNANCE

HUMAN RESOURCE 14 Total 135 GENERAL Staff SERVICE 1007

GROUND OPERATIONS 322 FLIGHT 194 OPERATIONS 170

SALES/ TECHNICAL CORPORATE MKT 90 6 SAFETY

CENTRAL 3 LIBRARY 1 16 CREW 3 TRAINING AVIATION SECURITY COMPLIANCE 11 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 TripAdvisor(R) for three consecutive years: 2017, 2018 & 2019. 13 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 So far, we have per hectare) to drying and storage. invested more than Farmers can warehouse to get US$ 500,000 and the best rates for their produce. A many hours of leadership to pave pilot project is underway at Belbari the path towards a self-sustainable Municipality, Morang, Nepal. agriculture in the country.

14 CORPORATE SOCIAL RESPONSIBILITY FUTURE PLANS

1. We are adding two ATR72-500s are currently in communication (MSN 758 & 772)in August/ with aircraft manufacturers. We September 2019 to consolidate will create the required Safety our current operation. This will Benchmark flowing from our current create on-time dispatch reliability experience. as one aircraft will be provisioned as spare for scheduled/unscheduled 3. We have evaluated all the narrow maintenance. body jets to start operation out of the upcoming Pokhara Regional 2. We are diversifying into Short Take- International Airport and are off and Landing (STOL) operations to currently testing the international the remote destination of Nepal with market by operating to Kolkata non-pressurized aircrafts. This will from Kathmandu on our current be through a subsidiary of Buddha fleet. Once we evaluate the risk Air, which will hold majority stake factors and mitigate them from this and the remaining by personnel of experience, we will move ahead on Buddha Air. We plan to start this starting commercial operations with operation as soon as possible and jetliners from Pokhara.

15 www.buddhaair.com

BuddhaAir BuddhaAirNepal AirBuddha BuddhaAirPvtLtd