Domestic aviation market down 9pc in Q1-Passenger Movement (January-March)

Domestic air traveller movement in the first three months of 2013 was down 8.89 percent year on year. According to Tribhuvan International Airport (TIA), the 12 domestic airlines operating in Nepal flew 360,870 passengers in the first quarter, a decline of 35,216 from before.

Airline officials attributed the fall in passengers to the collapse of a number of carriers and a decline in frequency. “As several airlines folded, the impact was seen in the overall domestic traveller movement,” said TIA general manager Dinesh Prasad Shrestha. “A drop in tourist arrivals, particularly from India, also caused a decline in airline occupancy.”

Agni Air and Guna Airlines suffered financial turbulence during the end of 2012 that ultimately led to their collapse. Another reason cited by industry watchers for the fall in passenger carriage is a “fear factor” among travellers to fly due to a spate of recent air crashes.

A rise in airfares is also expected to take a toll on passenger traffic, and the downturn is expected to continue in the coming months, analysts said.

Meanwhile, aircraft movement in the first quarter dropped 9.32 percent year on year, according to TIA statistics. Airlines made 15,280 flights in the Nepali skies in the first three months of the fiscal year.

The first quarter has been good for Buddha Air, Tara Air and Sita Air in terms of passenger occupancy. Buddha Air secured 59.08 percent of the domestic aviation market by flying 213,235 passengers. Its passenger carriage recorded a 3.64 percent growth.

Similarly, Tara Air, a subsidiary of Yeti Airlines, recorded a 22.83 percent growth while Sita Air’s passenger occupancy jumped 235 percent. Sita Air’s passenger carriage had plunged from 3,030 travellers in the first quarter of 2011 to 344 travellers in 2012. The carrier has been operating a lone Dornier since last September after one of the two in its fleet slammed into the banks of the Manohara River in Bhaktapur killing all 19 on board.

Meanwhile, Yeti Airlines, Guna Airlines (in its new avatar as Simrik Airlines) and Nepal Airlines all recorded losses in their passenger carriage. Yeti’s occupancy dropped 10.68 percent to 100,038 travellers. The carrier secured 27.72 percent of the domestic market.

Similarly, venerable national flag carrier Nepal Airlines, which is down to one aircraft in the domestic sector, suffered a 2.23 percent drop in passenger carriage. Nepal Airlines was left with one Twin Otter after the other crashed at Jomsom Airport in Mustang on May 16. Guna Airlines, which is now owned by Simrik Airlines, saw its passenger occupancy drop 11.43 percent. The carrier resumed operations in February and flew 7,530 travellers in the first two months. Guna suffered a downturn after its owner the Guna Group suffered massive losses on its housing ventures after real estate prices plunged.

Meanwhile, another trouble-ridden carrier Agni Air has been grounded since mid-November. Its woes began when the bottom fell out of the real estate market and its key promoter Sudhir Basnet defaulted huge loans taken from banks and financial institutions. Agni’s management has been taken over by Namaste Air in a partnership deal and it plans to resume operations from June second week.

source: the kathmandu post,29 may 2013