Domestic airlines carry 801k passengers in H1, 2012

Domestic air passenger movement grew 5.35 percent to 801,769 in the first six months of 2012 compared to the same period last year. Aircraft movement, however, dropped 9.42 percent during the same period.

Aviation watchers have attributed the trend to airlines, particularly Buddha Air, flying larger aircraft and carrying more passengers at a time.

According to Tribhuvan International Airport (TIA), 794,828 passengers flew on seven commercial airlines and the rest on helicopters and single engine aircraft in the first six months of 2012. The Nepali skies witnessed 35,418 flights in the review period, which means that 197 domestic aircraft took off and landed in the country daily.

The first half of 2012 has been good for two airlines—Buddha Air and Yeti Airlines—in terms of passenger occupancy. The other five airlines saw a negative growth. Buddha Air recorded the strongest growth in passenger movement. The carrier flew 420,311 travellers in the first two quarters, up 33.28 percent compared to the same period last year.

The airline’s fleet expansion drive has allowed it to consolidate its market share in domestic aviation. Buddha Air held a 52.42 percent market share in the first half of 2012. The carrier has targeted securing 60 percent of the market by inducting another 72-seater ATR 72-500 turboprop aircraft into its fleet.

“The new ATR is likely to arrive on Sunday,” said Rupesh Joshi, executive manager of Buddha Air. “We have estimated a 5-6 percent increment in the total market share with the entry of the new aircraft.” The airline currently owns three Beechcraft, three 47-seater ATR 42 and two 72-seater ATR 72 planes.

Aviation analysts said that the entry of Buddha Air’s new aircraft was likely to put more pressure on other operators. According to Joshi, growth in the first six months has been good and the season ahead will be busier.

Buddha’s nearest competitor Yeti Airlines saw its passenger movement grow 2.02 percent during the review period. The carrier flew 229,292 passengers.

Yeti Air’s subsidiary Tara Air saw a drop in passenger carriage of 18.13 percent in the first six months. The carrier flew 34,435 passengers during the period. It has added a German-made 18-seater Dornier 228-212 aircraft to its fleet recently. Tara Air now has five Twin Otter and two Dornier aircraft. The aircraft operates on short-haul and remote sectors.

Agni Air, which recorded a growth of 7.76 percent in the first quarter of 2012, saw its passenger carriage fall 19.11 percent in the first six months. Similarly, Nepal Airlines, Guna Airlines and Sita Air saw their passenger movement drop 21.30 percent, 77.30 percent and 57.79 percent in the first half of 2012 compared to the corresponding period last year.

Prajwol Thapa, marketing manager of Guna Airlines, said that all its aircraft were grounded in April and May for regular maintenance that resulted in heavy losses in passenger movement. The carrier resumed its flights from June 11 with two aircraft out of the three in its fleet.

The carrier has suspended its Biratnagar and Simara flights and operates on the Bhairahawa and Pokhara sectors. It also operates mountain flights. “In line with passenger response, we are planning to induct a large aircraft within five to six months,” Thapa said.

Airlines said domestic passenger movement generally increases in the second half of the year. The August-November period is the prime business season for domestic carriers with the occurrence of the Dashain and Tihar festivals and the tourist season.

source: The Kathmandu Post,20 Sept 2012