Yeti Airlines will be driven by market necessity'

DINESH KARKI
KATHMANDU, March 7: "We are a market driven company and our strategic position, perspective, and policy all are determined by the market," Vijay Shrestha, group executive director of Yeti Airlines, one of the leading domestic airlines in the country, said, elaborating reasons behind the success of the company.

Yeti Airlines having more than 60 percent market share in domestic air connectivity, has been gradually expanding since its establishment in 1998 with two aircraft. It has been operating flights from three operational hubs in Kathmandu, Nepalgunj and Surkhet to more than 29 destinations across the country.


The airline operates scheduled flights, cargo and chartered flights as per the necessity of the customers. Yeti Airlines has been working as a means of transportation in mountain areas like Bajhang, Simikot, Rukum, Dolpa, Bajura, Jumla, Lukla and Rumjatar among others.

“We want to focus on domestic sector. We won´t operate international flights until and unless we are fully prepared. There is no point flying in just one or two international routes,” Shrestha shared. He further added that the company believed in slow but steady progress and that it had been the policy of the company over the years. “The balance between our capacity and market needs determines whether or not to go for international skies,” he added.

Yeti has always been known for its diversified products in domestic air travel. It also operates chartered flights for sky diving from one of the highest elevations in the world. The airline has also fixed consumer-friendly airfare on its routes. Yeti´s airfare is comparatively cheaper than other domestic operators in the country.

“Observing the air supply and demand trend, I must say the demand for air seats is low. Nepal has a huge domestic air travel seats available. I don´t think there will be any problem for domestic air seats during Nepal Tourism Year (NTY) 2011, which has the objective of welcoming one million tourists,” Shrestha shared.

Currently, Yeti alone is serving about half a million passengers in a year. The airline has a fleet of seven 30-seater turboprop Jetstream 41 aircraft designed and built by British Aerospace. Tara Air, another associated company of Yeti Airlines, has eight aircraft and a chopper in its fleet.

Analysis of Passenger on Board (POB) data of Yeti Airlines since 2006 to 2009 shows gradual increase in the number of passengers using Yeti for air travel.

In its bid to further facilitate air travel, Yeti recently started its online booking and payment through Global Bank´s network. Global Bank is the third bank to join hands with Yeti for e-ticketing. Yeti already has such ties with Everest Bank and Nepal Investment Bank.

Yeti Airlines has a prestigious corporate profile with around 800 employees. The airline is best known for its punctuality and reliable service.

Highlighting hindering issues in the airline industry, Shrestha suggested the government to implement passengers and industry friendly tax regime. “Differential tariffs on landing, parking, and navigation should be stopped and value added tax (VAT) on import of machineries and other essential equipments should be reduced,” Shrestha demanded.

He also suggested strengthening aviation regulator Civil Aviation Authority of Nepal (CAAN) for making domestic aviation system strong.

Published on 2010-03-07 23:00:23