COMPANYP R O F I L E 2 0 1 8

buddhaair@buddhaair.com

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

Buddha Air

977-1-5521015

Jawalakhel, Lalitpur, Nepal 21 Years of TrusTed flYing

21

a b o u t u s

SEPT 2011

APR 1996SEPT 1997

OCT 1997

AUG 2008

SEPT 2008

MAY 2009

JUL 2010

AUG 2010

Registered buddha air Pvt.Ltd

started with a brand new, out of the factory Beechcraft 1900D

First Flight Took Off on a Beechcraft 1900D (9N-AEE)

IFC World bank provided a 10 year long term loan of US$10 million for hangar construction and to purchase two ATR 42-320s.

Expanded fleet family to include ATR 42-320 (9N-AIM & 9N-AIN)

Expanded fleet family to include ATR 42-320 (9N-AIT)

Expanded the fleet family to include ATR 72-500 (9N-AJO)

Began first international flight to Paro, Bhutan from Kathmandu

Expanded the fleet family to include ATR 72-500 (9N-AJS)

With over 20 years of success, buddha air

has grown to be a trusted domestic airline of Nepal. We are dedicated and committed in fulfilling our aim to provide the safest, most reliable and comfortable means of air transport. We are Nepal's largest and longest operating privately owned domestic airlines. Since our inception, our consistent

quality service and attention to flight safety have won over the trust and respect of our passengers. The strength in our fleet, variety in destinations, increase in flight frequency and our operational and technical proficiency allow our passengers to fly to their preferred destinations daily.

02

APR 2012

SEPT 2011

SEPT 2012

AUG 2014

APR 2016

OCT 2014

MAR 2017

SEP 2017

MAR 2018

JUN 2018

state of the art hangar inauguration ceremony

Expanded the fleet family to include ATR 72-500 (9N-AJS)

Expanded the fleet family to include atR72-500 (9N-AJX)

Began flights between Kathmandu & Varanasi

Successfully completed the AvMaSSI OSA program comprising of a harmonized series of international practices based on ICAO Annexesbuddha

air Hangar Construction Project won IPMA Excellence Award

Expanded the fleet family to include ATR 72-500 (9N-AMD)

Started direct flights between Pokhara and bhairahawa and Pokhara and bharatpur

Expanded the fleet family to include ATR 72-500 (9N-AMF)

Expanded the fleet family to include ATR 72-500 (9N-AMU)

Buddha Air always puts passengers first. We are committed to giving our travelers a safe, comfortable and memorable flying experience

Dhangadhi

D E S T I N A T I O N S

04

We fly to 15 destinations in 2 countries, Nepal and India. Our flights connect passengers from Kathmandu to Biratnagar, Bhadrapur,

Janakpur, etc. We expanded our domestic network by resuming flights between Kathmandu and Surkhet.

We have also commenced flights between Pokhara and Bhairahawa & Pokhara and Bharatpur to expand our domestic route network.

D E S T I N A T I O N S

Bhairahawa

Fishtail &Annapurna Flight

Simara

Kathmandu

Bharatpur

Varanasi India

Janakpur

Biratnagar Bhadrapur

Tumlingtar

Everest Experience Flight

Pokhara

Nepalgunj

SurkhetDhangadhi

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lIt is manufactured by Avions De Transport Regional (ATR) ajoint venture of France and Italy.

lThe ATR 42-320 is a twin turboprop aircraft

lPowered by Pratt & Whitney Canada engines PW121 engines.

lCapacity for 47 passengers lIt features large overhead

bins, handrail for facilitation of cabin/crew passenger movement and comfortable and spacious cabins.

lWe have THREE ATR 42-320 aircrafts.

F l E E T

lWe are the only private airline in Nepal to purchase a brand new straight-out-of-the-factory pressurized Beechcraft 1900D.

lIt is manufactured by Raytheon Aircraft Company (now Beechcraft, Textron Aviation) based in usa.

lIt is the choice aircraft of the American Aircraft Pilots' Association Powered by Pratt & Whitney PT6A turboprop engines.

lIt features 19 wide seats, low noise level, full stand-up cabin and air conditioning for optimum cabin pressure

lWe have TWO Beechcraft 1900D aircrafts.

BEECHCRAFT

1900'D'atR

42-320

lIt is manufactured by Avions De Transport Regional (ATR) a joint venture of France and Italy.

lThe ATR 72-500 is one of the best cost-efficient regional aircraft with turboprop engines

lPowered by Pratt & Whitney PW127 engines

lCapacity for 72 passengers lThis aircraft is environment

friendly, emitting less than 50% carbon dioxide per passenger km than its competitors

lFeatures cabin interiors engineered for attenuation and optimum comfort through advanced materials and absorbent panels and carpets.

lWe have SIX ATR 72-500 aircrafts

atR

72-500

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We care for the environment and strive to manage the environmental

impact of our operations. That is why we prefer to operate with the fuel-efficient ATR aircraft, which has a

low noise signature. The exceptional environmental performance allows for lower greenhouse gas emissions and

CO2 and fuel consumption reduced by 50% per passenger kilometre

We are the only airlines in Nepal to have an

international standard closed-door hangar that is part 145 Aircraft Maintenance Organization from the Civil Aviation Authority of Nepal (CAAN).

Located at the tribhuvan International Airport, our hangar was built at a cost of US$2.5 million and occupies

an area of 37,000 square feet. The 280-ton steel structure with 38 meters clear span and electrically powered doors can accommodate a Boeing 737 or an Airbus 320.

We have the largest spares and special tools inventory among all private airlines of Nepal for Beechcraft 1900D, ATR 42-320 and ATR 72-500 aircrafts which are stored at our hangar.

We conduct base maintenance for all our aircrafts at the hangar. since our hangar is the only MRO - Maintenance, Repair and Overhaul in Nepal, we also conduct scheduled maintenance for international airlines like Druk Air and NOVOAIR.

H A N g A R

State of the Art Marvel of Engineering

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Buddha Air's hangar is the only MRO (Maintenance, Repair and Operation) in Nepal that has conducted aircraft maintenance for international airlines like Druk Air and NOVOAIR

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S A F E T y I s o u R

C U l T U R E

S A F E T y

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We have an unwavering commitment to ensure that safety is maintained in all stages of our operations. All our employees work together to maintain and improve safety standards through best practices and standard of operations.

To provide safe, efficient and comfortable service, we put Safety Management System (SMS) in place which helps to monitor, identify and implement safety standards.

We have IATA (International Air Transport Association) credited auditors who regularly carry out internal audits of all safety aspects of our airline operations, including that of outstations as well.

We are the sole airlines in Nepal to monitor 100% of our flights through Flight Data Monitoring (FDM) System of Cassiopee.

WE ARE ThE ONLY AIRLINES IN NEPAL lTo conduct a two-yearly Operational Safety Audit,

which is based on all 960 Safety Standards of International Air Transport Association (IATA) spread over eight segments

lThat has been authorized to conduct PBN as all our aircrafts are equipped with global Navigation Satellite System (gNSS) which is a prerequisite, among other requirements for PBN implementation.

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Our frequent flyer program, Royal Club is one of our best ways to create and retain customer loyalty. It is free to join and is especially made for passengers who travel frequently. the earned miles can be redeemed for free domestic tickets or vouchers to shop, dine or buy gifts. We currently offer two tier memberships: Royal Club gold and Royal Club Platinum

1,13,956

Airlines Market Share Comparison2017-2018

Buddha Air( operated sectors

)only

51.55%Buddha Air

Other Airlines

Number of Flights Comparison1997/98-2017/18

14,433

21,018

23,764

3,916

7,582

22,198

9,476

23,02123,835

10,674

21,19919,788

11,210

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

22,34122,266

11/12

23,269

12/13

21,319

13/14 14/15 15/16

18,69618,793

16/17

27,295

17/18

30,669

R O y A l C l U BF l y l I K E R O y A l T y

F A C T S & F I g U R E S

8,100

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Total Passengers Comparison1997/98 — 2017-2018

1,200,000

1,100,000

1,000,000

900,000

800,000

700,000

600,000

500,000

4000,00

300,000

200,000

100,000

000/0199/00 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 14/15 15/16

DETAILS OF DIRECT & INDIRECT TAxPeriod from 2004/05 to 2016/2017

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

25,00,00,000

20,00,00,000

15,00,00,000

10,00,00,000

0

25,54,48,360

783,80,251

13-14 14-15 15-16

17,15,00,000

13,40,00,000

27,43,10,759

25,69,90,312

30,00,00,000

16-17

29,22,52,55730,00,00,000

16/17 17/18

17-18

13

34,47,70,052

30,00,00,000

O U R P E O P l E

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a defining reason behind our success over these two decades is our employees.

To provide seamless operations on the ground or in the skies, we are supported by almost one thousand employees. Our employees are committed to giving passengers the highest level of customer service from the time passengers book their ticket to when they arrive at their destination.

To maintain the highest quality of service, we provide continuous training and competence development programs to all employees. We make highest investment in training among all the Nepali airline operators. We have invested a total of US$ 1,068,307 on technical and US$ 142,289 on non-technical training in the fiscal year 2017/18.

CGD

CORP. SAFETY

13

23

17

hRD

REVENUE

FINANCE

Total Staff963

91

304

16

AVIATIONSECURITY

GROUND OPERATIONS

SALES/MKT OPERATIONS

CEW TRAINING

2

181

5

TEChNICAL166

COMPLIANCE3

CENTRAL LIBRARY

13

4

CREATINg THE BEST AND MOST DIVERSE NEPAlI WORKFORCE

15

GSD

125

E V E R E S T E X P E R I E N C E

on 11 October 1997, our maiden flight was a scenic Everest Experience mountain flight. This commemorative flight set

in motion our successful journey of being the preferred domestic airlines of Nepal.

The hour long flight departs from the domestic airport in Kathmandu in the morning. Every passenger is designated a window seat where you can watch the peaks roll by the aircraft window. you will see majestic mountains like Everest, Makalu, lhotse, etc.

E V E R E S T E X P E R I E N C E

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Everest Experience mountain flight has been awarded the “Certificate of Excellence” by TripAdvisor® for three years i.e. on 2015, 2017 and 2018.

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C s R

Ensuring Others Have a Chance TooS O C I A l R E S P O N S I B l I T y

Nepal has more than 50% arable land

suited for farming but is compelled to import billions of rupees worth of food grains. We identified the problems faced by the agricultural sectors of Morang and Sunsari. The problems were fragmented landholdings, traditional subsistence farming model, migration of capable agricultural labourers and low production of cereal crops due to low profitable status. We have been investing US$ 400,000 and many hours of leadership to implement the solutions, which are mechanized farming, readily available formal working capital and commercial farming practices.

1.7 million people were reportedly affected by the floods caused by heavy monsoon rains

in Nepal in 2017. Almost 92 thousand families

were displaced from their homes. During these difficult

times, we donated NRs. 25 lakhs worth of relief materials to the people affected by the floods in Morang and Sunsari. 417 tents were also distributed to families whose homes were displaced by the flood.

Buddha Air recognizes the importance of

supporting and investing in the

communities we serve.

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B E y O N D T H E H O R I z O N

Hub expaNsIoNs The Civil Aviation Authority of Nepal is

currently working on upgrading the airport in Bhairahawa and Pokhara to international

airports.

We are planning to decentralize the hub operations and expand it, once gautam Buddha International Airport and Pokhara Regional International Airport are complete. With these hub expansions, we will add jetliners and international destinations to our operations. Fleet expaNsIoNsAircraft manufacturers like Boeing and Airbus have provided us technical and operational details to operate from Pokhara Regional International Airport. We are conducting a feasibility study to choose the aircraft manufacturer that would best meet our requirements in terms of operating costs, fuel economy, capability of aircraft, maintenance agreements, etc.

We are now at a pivotal moment in our transformative journey to strengthen domestic connectivity and expand our international operations.

F U T U R E P l A N S

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B u d d h a A i r B u d d h a A i r P v t L t dA 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

Head Office: P.O.Box 2167 | Jawalakhel, lalitpur, 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