Guna Air readies for take off

KATHMANDU, May 17: At a time when more than half a dozen airline companies have disappeared from the market due to the myopic visions of the airlines´ management, Guna Air is making a foray into the sector by starting operations from Sunday. [break]



The company, established with a paid up capital of Rs 150 million, will launch its services by including as part of its initial routes a mountain flight and commercial flights to Pokhara and Biratnagar from Kathmandu.



Many private airline companies have emerged in Nepal ever since the domestic airline sector was deregulated around 17 years ago. Some of the companies have grown bigger since those heady beginning days, while most have withered and died. Two airlines that exemplify the successful and unsuccessful ventures in Nepal´s aviation sector are Buddha Air and Necon Air. Necon Air, which was considered the biggest airline company until 2000, is now defunct, whereas Buddha Air, established at around the same time, has transformed itself into one of the most profitable airlines in the country.



Buddha Air´s story is the more common one: not many airlines have reached the heights that Buddha Air has reached, while many companies have met a fate similar to Necon´s; some of the airlines that have been grounded are Shangrila Air, Lumbini Air, Everest Air, Mountain Air and Gorkha Air.



"These companies died mainly due to the incompetence of the management,” says Rajendra Sakya, executive chairman of Guna Air. “We will definitely make all efforts not to repeat those mistakes.”



Guna Air is the brainchild of Shakya, who was thinking of entering this sector for the last one-and-a- half years. "However, due to various reasons I wasn´t able to," says Shakya, who bided his time by handling diverse successful businesses, from housing and banking to a movie theater and an educational institution. Then several months ago when he heard that Buddha Air was dispensing with some of its aircraft, he thought that was the right time to make his move. Thus was born Guna Air.



Guna Air currently has two 19-seater Beechcraft 1900s - both purchased from Buddha Air. These aircraft will fly to two sectors - Pokhara and Biratnagar - from Kathmandu and will also conduct mountain flights.



Shakya has planned a relatively humble start, but he plans for Guna Air to grow. "We will add one new sector to our network every month," says Shakya. Nepalgunj, Bhairahawa, Dhnagadi and Simara are some of the places that Guna Air could be flying to soon. "We will also operate flights to rural places after we get new aircraft," Shakya says. If the plan unfolds according to projection, the Guna Air will add two more aircraft within a year. "I believe four aircraft will be enough to cover all major routes in the country," Shakya says.



In the initial days, Guna Air will be selling air tickets at discounted prices. "But this is only an introductory offer and it is not our intention to enter into a price war with other companies to boost sales," Shakya says.



A couple of years ago, Cosmic Air´s decision to sell air tickets at rock bottom prices had triggered a price war in Nepal´s domestic aviation sector. However, after being unable to bear rising overhead costs, the airline was forced to shut down its business.



Shakya knows the wisdom in making the skies a friendly place instead of having it turn into a battle zone.



"I´d rather sell tickets for 500 rupees more, than enter into an unhealthy competition with others in the industry and put everyone into a tailspin…. I don´t want to dig my own graveyard," Shakya says, adding, Guna Air´s fares will be similar to that of Buddha Air´s.



And for the higher prices that customers pay, they will in exchange get greater safety standards and a higher quality service. "That´s how Guna Air plans to carve a niche for itself," Shakya says, without elaborating on the measures that the company will take to deliver high-standard services and ensure greater safety. Shakya knows he´s entering perilous territory and he´s starting out right: the prudent words show he believes in the strong business fundamentals on which successful ventures are built--a quality that should see Guna Air through both balmy skies and turbulent times.

Related story

Number of air passengers and flights take a nosedive after air...