Promoted by Dr D K Dangol, who is involved in international trading, Blue Airways is planning to acquire two 48-seater ATR-42 and two 19-seater aircraft. [break]
According to the business plan submitted to MoTCA, the airline will operate flights to and from Kathmandu, Biratnagar, Pokhara, Bhairahawa, Nepalgunj, Chandragadhi, Dhangadhi and Simara.
The licensing condition requires the airlines to start operation within two years of receiving the license. Civil Aviation Authority of Nepal (CAAN) gives Air Operation Certificate (AOC) after completion technical evaluation of the airline.
“The airlines will have to take AOC from Civil Aviation Authority of Nepal (CAAN) within a year. It should be airborne within a year of receiving AOC,” Suresh Acharya, joint-secretary at MoTCA, said.
According to existing rules, domestic carriers must have minimum paid-up capital of Rs 150 million. They also need to show bank guarantee of Rs 2 million. International carriers must show bank guarantee of Rs 5 million. Similarly, domestic operator must to submit Rs 30,000 per route as royalty of trunk route on annual basis.
Blue Airways has already submitted royalty for two years for eight trunk routes, officials said.
The royalty amount is non-refundable and the amount under bank guarantee will be forfeited and license scrapped if company fails to start operation within two years.
Blue Airways, however, hasn´t said whether it plans to purchase aircraft or acquire it on lease.
There aviation industry mainly has two leasing types - wet lease under which aircraft manufacturer provides complete crew with aircraft, maintenance and insurance and dry lease under which only aircraft is provided.
“Since there is no dearth of skilled pilots in the country to operate ATR-42, there are chances that the company might opt for dry lease,” a CAAN official said.
As Tribhuwan International Airport (TIA) is already crowded, the airline is unlikely to have Kathmandu as its base. CAAN officials said the airline will probably be based in Nepalgunj or Pokhara.
Other domestic carrier Swift has recently AOC from CAAN. The airline had received license from MoTCA about six months ago.
Swift Air is preparing to operator to two ATR-42 and two Dornier aircraft. The airlines will be operating services on trunk as well as rural routes.
According to CAAN, more than 1.20 million passengers flew within domestic sector -- a growth of around 4 percent compared to last year.
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