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Aircrafts NINE Buddha Air www.buddhaair.com COMPANY PROFILE COMPANY SUMMARY Buddha’s Conception The demand for air services in Nepal grew following the restoration of multi- party democracy in 1990. The economic liberalization laid the foundation for new investments resulting in the growth of the service sector and infrastructure development. Amidst this rapidly changing socio-economic condition, former Supreme Court Justice Surendra Bahadur Basnet identified a new opportunity for investment in transportation and subsequently founded Buddha Air in 1997. Buddha Air 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 NINE TyPES OF AIRCRAFTS Beech 1900D (3) ATR 42-320 (3) ATR 72-500 (3) PAGE 3 DESTINATION AIRCRAFT Kathmandu Mt. Everest Pokhara Biratnagar Dhangadhi Nepalgunj Tumlingtar Bharatpur MAP Fishtail & Annapurna Dhangadhi Pokhara Surkhet January 2013 KATHMANDU Mt. Everest Nepalgunj Tumlingtar Bhairahawa Bharatpur Simara Janakpur Paro, Bhutan Chartered Flights Biratnagar Bhadrapur Varanasi, India PAGE 4 Janakpur Bhairahawa Bhadrapur Simara Surkhet Varanasi, India Paro, Bhutan January 2013 Chartered Flights ATR-42 ATR-72 Beech 1900 D Adapting to the rapidly ATR 72, enhanced from It is on the choice list of evolving competitive market, ATR 42 to increase the American Aircraft Pilot's Buddha Air bought two ATR the seating capacity Association. Manufactured 42-320, 47-seater aircrafts from 47 to 72, is widely by the US-based Hawker under US $ 10 million loan appreciated as one of the Beechcraft, this 18-seater from the International Finance best regional aircrafts of the is safe, comfortable and Corporation (IFC), a member world. Buddha Air currently reliable. Powered by two of the World Bank Group. has two ATR 72s and is powerful Pratt & Whitney These aircrafts have enabled operating one more ATR 72 PT6A-67D turboprop Buddha Air to issue low-price by September, 2012. Along engines, Beechcraft 1900D tickets for Nepali passengers. with safety, the aircraft is is widely accepted popular for its cost-effective as one of the best operation and environment airplanes of the world. friendly features. SALes & MARKETING uddha Air is the leading airline operator of the country with total market share of 54 percent and is targetting to increae it to 70 percent. Our Bmarketing department with dedicated employees deserves credit for the success. Total Passengers Comparison 2011-2012 (projected data based on 8.5 months actual data) 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 Airlines Market Share Comparison 2011-2012 (projected data based on 8.5 months actual data) The success of our frequent flyer program is another reason to cherish. The club membership 4.93% has been a strong medium to directly reach our Guna Air regular passengers by rewarding them mileage 10.50% points which can be accumulated for free tickets, Agni Air holiday packages or even for shopping. We are proud to be the first airline of the country to launch such program. 30.64% 53.93% 98,790 Yeti Airlines Buddha Air ROYAL CLUB GOLD CARD MEMBERS 6,275 PLATINUM MEMBERS. (Buddha Air operated sectors only) PAGE 6 23835 23764 23021 22341 22198 Number of Flights 21199 21018 21785 Comparison 19788 2011-2012 (projected data based on 8.5 months actual data) 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 We are targetting 70% of total market share in 2012/13 HANGAR ur state-of-the-art closed door hangar is Oin operation since last year. The world class hangar has helped our Technical and Operations Department for better coordination and communication. A huge amount of Nepali currency has also been saved as we no longer need to go abroad for maintenance. Inauguration of the hangar by Former Tourism and Civil Aviation Minister Lokendra Bista Magar. PAGE 8 SAFETY MEASURES Managing Director Birendra Bahadur Basnet and Chief Executive Officer of ATR Filippo Bagnato signing agreement to purchase third ATR 72-500. Exchange of Agreement with Aaron Tang, General Manager of Canada based Pratt Buddha Air is Prime Client & Whitney - engine manufacturer. of International Finance Corporation (IFC) – World Bank Group in Nepal HANGAR SPECIFICATION with a total loan portfolio l Built at a cost of US $ 2.5 million, the hangar expands over an of US$ 16.9 million. The area of almost 37,000 square feet. first phase started in l Only facility of its kind in Nepal and amongst a very few in South Asia. September 2008 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. PAGE 11 OPERATION Buddha Air has been classified as a very safe Buddha Air is the only private airline in Nepal to operator and we have provided the ATR-72 on lease send all its ATR & B1900D cockpit crews refresher purchase option. This is a very rare opportunity trainings at dedicated six axis full motion simulators given only to highly rated operators who have as per CAAN requirements. This cost comes around structured and periodic audit, engineering and US$ 600,000 annually as of date. operations management monitored by us. n Mr. Jean-Luc Establie Sales Director, ATR Company 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 TECHNICAL SAFETY MEASURES - IOSA Enhancing the measures for flight safety, we are in the final stage for International Air Transport Technical Department has been audited by Civil Association (IATA) Operation Safety Audit-IOSA. Aviation Authority of Nepal (CAAN) with assistance We have signed the agreement with IOSA auditor from South Asia Regional Initiative (SARI/COSCAP) ICF SH&E, one of the eight IATA designated representatives for the development auditors. The airline is starting IOSA pre-audit of its Exposition Manual and evaluation on July 15, 2012 at a cost of more than maintenance facility in line with US$ 90,0000. With this, Buddha Air will be the part 145 Maintenance Organization first Airline from Nepal to be IOSA compliant. equivalent to European Aviation IOSA has 900 standards to be audited in the Safety Agency 145 Maintenance operation area which includes: Organization. l Corporate Organization and Management l Flight Operations l Operational Control and Flight Dispatch l Aircraft Technical and Maintenance l Cabin Operations l Aircraft Ground Handling l Cargo Operations l Six axis full motion Operational Security flight simulator training We have also started the process of ISO9001 audit and we will be compliant by the end of 2012. Buddha Air will start ISO14001 audit after completing IOSA and ISO9001. PAGE 10 HRD uddha Air is a leading employer in the country with around 650 Bstaff members. Our Human Resource Department plans and manages human resources with equal opportunities without nepotism and favoritism. Besides, we also invest in the capacity development of the employees, offering them necessary training. HRD plans to set up a separate unit in near future to continuously monitor the performance of employees. Revenue Corporate Office 18 HRD Finance TIA 2 Human Resource 9 Corporate Office 10 MIS Payroll 2 Engineering 4 Corporate Office 10 Security 13 Sinamangal 1 Marketing Engineering Corporate 5 Technical 70 TIA 87 Corporate 38 Cargo 12 Stores & Purchase 8 Public Relation 6 City Sales 13 Sundhara Sales 4 Jawalakhel Sales 5 Total Staff Reservation 19 Outstation 126 Operations Varanasi 1 Air Crew 62 Surkhet 1 Cabin Crew 43 678 Flight Operation 24 Dhangadi 9 Tumlingtar 6Biratnagar 26 Bharatpur 9 Pokhara 14 Simara 10 OUTSTATIONBhairahwa 12 13 Nepalgunj Janakpur 10 Bhadrapur 15 EMERGENCY RESPONSE PLAN Buddha Air has an Emergency Response Committee that is automatically activated in case of accidents, curfews, political unrest etc. Now we are in the process of extending the scope of work to include natural disasters like earthquakes etc. and how we can immediately be ready to response, such as emergency upliftment with our fleet of aircrafts etc. Once the procedure is in place Buddha Air will coordinate with governmental and non-governmental organizations for further interface. PAGE 11 FINANCE & DETAILS OF DIRECT & INDIRECT TAX REVENUE Period from 2005/06 to 2011 / UPTO 31 March 2012 2,50,00,000 INDIRECT TAX ith increasing trust of our valued (CUSTOM, VAT & TDS) 17,80,63,646 customers, we are enjoying DIRECT TAX (CORP.) 15,90,41,802 Wa sustained growth in our revenue. 2,00,00,000 Established with an initial investment 14,71,93,838 of $ 8 million, the airline now has the assets worth $ 44 million. Our total projected revenue of FY 2011/12 1,50,00,000 9,56,74,197 (projected data based on 8.5 months 10,77,37,953 actual data) is Rs. 3,10,37,82,356 7,95,55,268 compared to Rs. 2,51,70,75,652 in 1,00,00,000 last fiscal year (2010/11). Likewise, 6,54,55,000 our direct tax contribution was 5,79,14,317 4,04,84,484 4,88,98,108 4,65,00,000 Rs.
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