Buddha Air is most likely to offer lower fares than Drukair, a strategy that will end the national airline’s monopoly on its third busiest route, the Paro-Kathmandu sector.
“It will be survival of the fittest,” said civil aviation director, Phala Dorji. “They’ll have to compete on this route.”
The private Nepali airline, which begins operations to Paro airport in July, is looking to capitalise on a route frequented by tourists and pilgrims.
Last year, 8,750 passengers flew to Paro from Kathmandu; while 8,539 passengers travelled from Paro to Kathmandu, according to the 2010 transport statistical bulletin.
For Bhutanese citizens, a one-way economy class ticket to Kathmandu currently costs Nu 5,345, and a round trip Nu 10,514. Foreign citizens pay USD 190 for a one-way ticket.
Traffic between the two sectors is highest between September and November, the peak tourist season. Buddha Air is already planning to run charter flights during this period, in addition to its two scheduled flights a week. Eventually, the airline plans to operate a daily schedule between Paro and Kathmandu.
“If you go by the passenger ratio, there’s not much there, so of course there’s a commercial viability issue,” said director Phala Dorji. “Most probably they’ll offer schemes and concessions to attract passengers. They’ll have to do some aggressive marketing and offer attractive fares.” He added, “It’ll be good competition for Drukair on this sector, it’ll benefit people like you and me.”
Director Phala Dorji also said that Buddha Air could propose to connect cities such as Dhaka, Guwahati, and Kolkata to Paro, at a later date.
Buddha Air is the first international airline approved to operate to Bhutan. “Any airline that operates from outside to Bhutan is a significant development,” said Phala Dorji. So far, only one other airline, also Nepal based, Yeti, expressed interest in operating to Bhutan, but operations never materialised.
On Tuesday, Buddha Air successfully conducted a test flight into Paro airport.
Courtesy: Gyalsten K Dorji
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