Buddha Air

companyprofile

2014

f a c e b o o k . c o m / b u d d h a a i r @ a i r b u d d h a @ b u d d h a a i r n e p a l

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

17 Years of TrusTed flYing

Buddha Air is the largest privately owned airlines in Nepal. It has a vision

to provide the safest, most reliable and comfortable means of air transport, and has always been committed to fulfilling this vision. After starting its operation in October 1997, it has risen to become one of the most recognizable brands in Nepal.

Since its inception and 17 years of service, safety has always been an imperative for Buddha Air. The consistent quality service and attention to safety has won over the trust and confidence of the customers – making it a preferred brand.

Buddha Air

YeAr of operAtion

11.10.1997

executive chAirmAn

Surendra Bahadur Basnet

mAnAging Director

Birendra Bahadur Basnet

tYpe of BuSineSS

international/ DomesticSchedule flight operator

no. of AircrAftS

eight

tYpeS of AircrAftS

Beech 1900D (2)Atr 42-320 (3)Atr 72-500 (3)

companY summarY

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Dhangadhi

Nepalgunj

BhairahawaBharatpur

SimaraJanakpur

Biratnagar Bhadrapur

Everest Experience FlightKATHMANDU

Pokhara

Paro, Bhutan

Varanasi, India

Route & Destinations

Fishtail & Annapurna Flight

Chartered Flights

Beech 1900 DBought at a cost of US $5 million, Buddha Air is the only private airline in Nepal to purchase a brand new straight-out-of-the-factory pressurized Beechcraft.

The aircraft is manufactured by Raytheon Aircraft Company (now Hawker Beechcraft) based in the US.

It is one of the most popular 19-passenger airlines in history and is the choice aircraft of the American Aircraft Pilots’ Association.

It is powered by two Pratt & Whitney PT6A turboprop engines.

desTinaTions / aircrafTs

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Tumlingtar

ATR-72The 72-seater ATR-72-500 is regarded as one of the best regional aircraft with turboprop engines.

It is powered by Pratt & Whitney Canada PW127 engines.

The ATR-72 is also environment friendly, emitting less than 50% carbon dioxide per passenger km than its competitors.

ATR-42The ATR-42 320 is a twin turboprop aircraft powered by Pratt & Whitney Canada PW121 engines and manufactured by Avions De Transport Regional (ATR) a joint venture of France and Italy.

It has a capacity for 47 passengers, featuring large overhead bins, handrail for facilitation of cabin crew/ passenger movement and comfortable and spacious cabins.

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Airlines Market Share Comparison2013-2014

The efforts from Buddha Air’s Sales and Marketing team has earned the trust and

confidence of its valued customers by promising to provide the safest and most reliable flights to the sectors Buddha Air operates in. Securing

a foothold of nearly 65% of the market share in the domestic pressurized aircraft segment; Buddha Air has the image of a credible airline that provides high quality service with optimized efficiency.

5.09%Simrik Air

(Buddha Air operated sectors only)

63.26%Buddha Air

31.65%Yeti Airlines

sales & markeTing

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Number of Flights Comparison1997/98-2013/14

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

2234122266

11/12

23269

12/13

21319

13/14

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Buddha Air’s Frequent Flyer Program; Royal Club provides privileges to its members by rewarding them with mileage points. These points can be redeemed for gift vouchers, free tickets and even holiday packages. The Royal Club Program allows Buddha Air to show gratitude and appreciation to its loyal and frequent passengers.

99,821Royal Club GolD

CaRD membeRs

7,325Platinum membeRs.

Total Passengers Comparison1997/98 — 2013-2014

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 13/14

With dominant market share and positive feedback of our valued customers, we are working towards strengthening our lead in the market

Buddha Air’s hangar is a 280-•ton steel structure with 38 meters clear span, consisting of eight electrically powered hangar doors.

The state-of-the-art closed-•door hangar facility is located at Tribhuwan International Airport and is the only one in Nepal.

It was built at a cost of USD •$ 2.5 million and occupies an area of 37,000 square feet.

It allows for major aircraft •

maintenance and repair work and safety inspections and audits to be carried out.

The staffs working at the •hangar are trained as per ISO 9001 Quality Management System.

It has a well-equipped •maintenance facility as per NCAR-145 requirements in terms of hangar space, tools and equipment, workshop facilities and aircraft parts and material storage.

IPMA Project Excellence Award – Buddha Air’s Hangar Construction nominated as a Finalist in Medium and Big Sized Projects in the year 2014.

Hangar09pa

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operaTion10pa

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The operation department of Buddha Air is responsible for flight

safety, accident prevention and the training of the crew members. Safety is always a top priority of Buddha Air.

This department ensures that flights are operated and the crew members are trained as per the requirements of Civil Aviation Authority of Nepal (CAAN). Buddha Air spends around

US$ 600,000 annually on skill-enhancement activities of its crew members for trainings and required refreshers in dedicated six axis simulators.

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 VenuRegional Sales ManagerPratt & Whitney Canada

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 EstablieSales Director, ATR Company

Corporate Safety Department

The department, through Safety Management Systems (SMS) ensures that organizational safety objectives are met by assurance

and promotion of safety at Buddha Air.

It has achieved the highest level of safety performance by systematically managing all risks associated with flight operations, ground handling operations and engineering and maintenance activities.

Safety Management Systems (SMS)Policy to manage safety and security ensuring the •effective management of safety risks associated with aircraft operations. Integrating tools like hazard identification, risk •management, reporting risk occurrence, investigation, and implementing remedial actions and education do this. It has provided a safety culture and environment that •readily identifies and resolves safety risks.

Quality Management Department (QMD)

Established with the vision to strengthen the work process, corporate governance, customer service and quality output

in every corporate department and divisions.

Internal Audit Division in all the corporate areas to make sure every procedure is fully implemented and followed according to the manuals for quality output performs systematic planned audits.

Internal Audit strictly follows audit process based on ISO 19011-2011 and all the auditors are trained as per the policies and systems defined according to International standard.

Compliance Monitoring

Yearly plans are implemented for monitoring and •auditing the various departments, divisions, outstations, and service providers working with Buddha Air. This department ensures that activities and operations •are performed, by strictly adhering to the tasks and policies outlined in the respective manuals. Qualified and certified in-house auditors perform auditing •and monitoring.

safeTY13pa

geFlight Data Monitoring (FDM)With safety as a priority at Buddha Air, it has implemented Flight Data Monitoring (FDM) system.• Every flight by Buddha Air is monitored by FDM – a method of recording and analyzing data generated by an aircraft when it moves from one point to another.

• The consistent analysis of Buddha Air’s FDM Data allows for continuous trend to be identified so that a thorough investigation into any incident recorded can be done.

• The FDM data for Beechcraft are analyzed by highly qualified, trained and expert employees from engineering, operations and technical department.

• The FDM data of 100% flight movements for ATR are sent to CASSIOPEE - an aviation service provided by Sagem. It has been leading the market for Flight Data Monitoring for its innovation in the field and expert flight safety and flight operations consultants. The data sent is received within 2 hours, for further analysis by the FDM Staff at Buddha Air.

Quality Assurance Audit Program (Internal Audit)

Annual Audit Program is being •developed, published and implemented to cover all the functional areas of Buddha Air’s Operations, Maintenance and Engineering.

This ensures continued compliances •with regulatory requirements, company’s standards and procedures

Audits are also focused on •identification of safety hazards and adequacy of the procedures to meet standards.

Qualified auditors perform •scheduled audits as per approved Annual Audit Plan.

Besides scheduled audits, random/•spot checks are carried out as part of Continuous Surveillance Program

Management review of Quality •Assurance Program is done twice a year with accountable managers and senior management officials.

safeTY audiT

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Implemented during major aircraft accidents or adverse events that result in •fatalities, serious injuries, and disruption of operations.It is a fundamental implementation for the central management and coordination of •activities.Dedicated assignment of emergency responsibility to the ERP nominated Buddha Air •staffs, trained for such scenarios.It has been exercised through tabletop drills and full -scale emergency drills.•

External AuditCivil Aviation Authority of Nepal •(CAAN) has been carrying out audit for Buddha Air every year. ICF SH&E, Buddha Air’s previous •auditor, merged with Safety Practice to form Aviation and Marine Solutions International (AMSSI).AMSSI is an international •independent aviation-consulting firm. It is the leading expert in safety and operational integrity consulting, evaluations and auditing. It is an IATA accredited organization.Recently, AMSSI carried out an •Operational Safety Audit on 21st

July to 25th July 2014 Its recent audit on Buddha Air •assessed Operational Safety Audit (OSA) in different functional areas of flight operations, aircraft engineering and maintenance, cabin operations, ground handling, dispatch, cargo, organization and security management.The findings and observations made •on this audit are being addressed properly to close the issues. EU Air Safety Committee had •carried out Safety Assessment of Buddha Air from 3rd to 8th February 2014.

Emergency Response Plan (ERP)

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TecHnical16pa

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It is located at Buddha Air’s Hangar, where maintenance work, checks and inspections

of the aircrafts are performed – maintaining the aircrafts in an airworthy condition. The major tasks performed by qualified and certified staff are:

Line maintenance: •This is a routine maintenance done in

between all flights, ensuring that Buddha Air’s aircrafts are in worthy condition for its intended flight.Maintenance activities are closely

coordinated and include troubleshooting, defect rectification, component replacement, visual inspections, and servicing.

Base maintenance•This planned and heavy maintenance

requires Buddha Air’s aircrafts to be out of traffic. Includes major modifications, repairs,

and upgrades.Buddha Air was the first to do 36000

cycle checks for its ATR fleet.Successful installation of Global

Navigation Satellite System (GNSS) and Multiple Purpose Computerized System (MPCS) in all its fleet.Enhanced Ground Proximity Warning

System installed on August for its Beechcrafts.

Technical Supplies and •Inventory Management

Well trained staffs keep the store well

equipped with inventory that has been meeting all the requirements for the maintenance of Buddha Air’s fleet.Division is well furnished with storage facilities and equipped with appliances like air-conditioners, humidity control machines,

hygrometer, etc. Transparent and economical inventory management. The store facilities have sufficient stocks of

spare parts and components worth US$10 million in proper location and layout.All spare parts and components purchased and used are Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA) certified.

The current Inventory (in terms of category and values only)

of Technical Stores Fixed Assets

Rotables : NRs 488,191,930.88 (US$ 5,138,862.43)Tools and Ground/Test Equipment: NRs 123,159,517.26 (US$ 1,296,415.97) Current AssetsExpendables, commercials and lubricants: NRs 410,321,433.98 (US$ 4,319,172.98) Grand Total: NRs. 1,021,672,882.12 (US$ 10,754,451.39)

36GSD

36TRANSPORT

161SALES &

MARKETING

135OUT

STATION

175TECHNICAL

136OPERATION

13FINANCE

19REVENUE

13MISQMS

Human resource

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Crucial for the management and operation of the company, the

Human Resource Department carefully plans and organizes the employees of all departments and offices of Buddha Air. The department ensures that the right people are recruited and placed at the right position so that the organizational goals are accomplished. Job analysis and performance appraisals are conducted to analyze areas where employees need training and development, motivation or promotions.

We believe that every employee must be treated equally and given equal opportunities for their career progression. This facilitates motivation and job satisfaction

staff & Department

total staff 724

REVENUE COMPARISON2008/09—2013/14

75,21,54390,45,690

1,01,60,039

1,56,38,3551,48,45,291

13/14

(in US$)

The Finance Department at Buddha Air holds the

responsibility of developing and implementing financial plans and policies and preparing the annual revenue and expenditure budget. These are done after a thorough and careful documentation and examination of Buddha Air’s financial statements.

The Revenue Department of Buddha Air verifies, collects and accounts all the revenue generated from ticket sales, passenger sales, cargo sales and excess baggage sales. It coordinates and plans revenue related financial functions with external agencies and departmental staffs.

These departments work together to ensure that financial plans and policies are developed and implemented in relation to Buddha Air’s objectives. They work closely with internal and external auditors to maintain clean and transparent audit records.

08/09 09/10 10/11 11/12 12/13

81,34,216

DEtAIlS Of DIRECt & INDIRECt tAxPeriod from 2004/05 to 2013/2014 INdIreCT TAx

(CUSTOM, VAT & TDS)

dIreCT TAx(CORP.)

3,21,98,655

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

4,17,31,563 5,05,15,3895,79,14,317

6,54,55,000

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

10,77,37,953

14,81,26,942

12,87,74,684

11-12

3,38,45,334

17,80,63,646

12-13

2,12,00,487

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

25,54,48,360

5,83,80,251

"IFC's investments in Buddha Air are helping expand access to better air travel services for Nepal's population and support development of infrastructure in the country. Besides offering a reliable and faster travel option, Buddha Air is also contributing to the growth of tourism industry and economic growth in Nepal."

finance & revenue

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13-14

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everesT experience

Photo: Capt. A.G. Sherpa

A trip to Nepal will be incomplete without an Everest Experience to indulge in the majestic

views of the Himalayas. Every passenger is guaranteed a window seat, from where they can get a close-up view of nine majestic peaks like Mt. Everest and Mt. Manaslu and even view the Khumbu Glacier. A 50 minute flight on Buddha Air’s Everest Experience makes it a memorable and cherished experience.

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The intention and vision to provide the best travel experience led to the establishment

of Buddha Holidays.

Buddha Holidays is a 100% owned subsidiary of Buddha Air. It is a web-based travel company that provides the best and most affordable holiday packages in Nepal and India (Varanasi).

It provides the best travel packages at the most affordable prices and promises to deliver the places, sights and activities mentioned on its itineraries. This makes it a trustworthy brand among the customers.

BuddHa HolidaYs

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Varanasi Flight and Holiday Packages Recognizing the religious connection between the two ancient cities of Kathmandu and Varanasi, Buddha Air has been operating flights to Varanasi for three years. The duration of the flight is about 50 minutes.

The establishment of Buddha Holidays gives options for you to tour Varanasi with the two pilgrimage packages offered – Classic Kashi and On Buddha’s Trail. Besides Varanasi, Sarnath and Bodhgaya are also included in the itineraries. These religious states hold immense religious value to Hindus and Buddhists. Varanasi is where most Hindus go to get salvation, Bodhgaya is where Lord Buddha attained enlightenment and Sarnath is where he gave his first sermon.

Buddha Air firmly believes that as a responsible organization, it should be instrumental to

transformative changes that help the economy of Nepal.

Buddha Air’s Corporate Social Responsibility (CSR) is aimed towards assisting the rural farmers to increase their cereal crop yields through innovative and appropriate technology transfer, reduction of cost of production and loss and wastage and increase in productivity; which ultimately addresses the food grain crisis.

The prevalent problem of fragmented cereal crop farmland ownership, flight of agriculture labor and non availability of cheap working capital has cumulated in productivity decrease and unsustainable farming.

We believe that every dark cloud has a silver lining, therefore through Nepal Krishi Company (NKC) – a non-profit organization we have been able to solve this problem by organizing the small farmers into scale economy cooperatives that provides solutions to above mentioned problems.

We are working on a pilot project with four cooperatives focused on winter crop (wheat and maize) cultivation in over 400 hectare land of Sunsari district. Once we evaluate this program as successful, we plan to work for paddy farming.

Buddha Air has contributed Rs. 15 million for the betterment of Nepali farmers. It has also donated Rs 8, 46,000 to NKC for the purpose of proper grain storage for agricultural cooperatives associated with it. The stored grains are made available to the market after appropriate prices are set – allowing farmers to receive increased profits of up to 20% to 25%.

pHilanTHropY23pa

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The recent landslides and flood disasters that occurred due to incessant rainfall left many people dead and the victims of the disasters displaced. Buddha Air made a small donation of Rs 1.5 Million to the Prime Minister’s Relief Fund to provide relief to the victims of the disasters.

Head Office: P.O.Box 2167, Kathmandu, Nepal, Telephone: 977-1-5521015, Fax: 977-1-5537726 Email: buddhaair@buddhaair.comCity Sales Office Hattisar, Kathmandu, Telephone: 977-1-4437025, 4437677, Fax: 977-1-4436033

Buddha Air

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by:

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