Government pledges to support the aviation sector amidst anticipatory increase in air traffic with the GMC in foresight
With the Gelephu Mindfulness City (GMC) beginning to take shape, the country is only going to witness increasing number of both inbound and outbound air travelers in the years to come. Besides overhauling the Gelephu international airport, the government is already planning massive changes in the aviation sector anticipating a major influx and outfluxes of human and cargo both from Gelephu as well as Paro.
According to the Minister for Infrastructure and Transport, Chandra Bdr Gurung, to ferry the cargoes and transport people, Bhutan is open to foreign carriers entering the market, in addition to Drukair expanding its fleet by purchasing additional aircrafts in the next 4-5 years with current average occupancy at around 65 percent. In the aviation sector, ‘average occupancy’ refers to the percentage of available seats on an aircraft that are filled with passengers during a specific period
These plans are informed by past occupancy rates and load factor data to ensure that future capacity meets growing demands. ‘Load factor data’ refers to a key performance metric that measures the efficiency of an airline in filling seats and generating revenue. It is calculated as the percentage of available seat kilometers (ASK) that are actually filled with revenue passenger kilometers (RPK). A higher load factor indicates that an airline is efficiently using its capacity to transport passengers, which typically leads to better profitability. Conversely, a low load factor may suggest underutilization of capacity, which can negatively impact the airline’s financial performance.
The Minister also highlighted that with bilateral Air Services Agreements (ASA) in place with nine countries on a reciprocal basis, there is potential to explore opportunities as the need for expanded air services arises.
Prime Minister (PM) Dasho Tshering Tobgay said that the airline companies are ready to purchase aircrafts if there are passengers. He said that the government will also provide every support it can render to the aviation sector because it contributes significantly to the tourism industry.
Lyonpo Chandra said that talks and discussions with other foreign and commercial airlines will take place in due course of time to meet the needs of the country’s economy and demography.
Meanwhile, Drukair as the national flag carrier has set its goal in playing a pivotal role in the success of His Majesty’s vision for the Gelephu Mindfulness City project.
Drukair is set to introduce new routes to Dubai starting October 28, 2024, aiming to enhance travel options for both local and international tourists, particularly those from the Middle East, Africa, Europe, and the East Coast of the USA.
The Chief Executive Officer (CEO) of Drukair, Tandin Wangchuk, expressed excitement about this launch, highlighting the airline’s commitment to connecting Bhutan with the world and promoting tourism and trade between Bhutan and the United Arab Emirates (UAE). “This new initiative is expected to significantly boost the country’s tourism sector while providing convenient travel options for tourists and Bhutanese residing in the UAE and neighboring regions,” he stated.
Ticket prices for the new route will start at BTN 54,000 plus applicable taxes for Bhutanese nationals and USD 1,298 for international travelers, also subject to additional taxes. Initially, flights will operate twice a week on Mondays, Tuesdays, Fridays, and Saturdays. However, there are plans to expand the schedule as passenger numbers increase.
Tandin Wangchuk described the launch of air services to Dubai as a major milestone in the airline’s expansion efforts. “This reflects our growing international presence and dedication to connecting Bhutan to the world,” he added, noting that this initiative will strengthen ties between the two nations.
Currently, Drukair operates scheduled flights to nine international destinations across five countries in the South Asian region from its base at Paro International Airport, as well as three domestic routes within Bhutan. The airline successfully soft-launched the Dubai route on September 10, establishing a direct connection between Bhutan and one of the world’s most dynamic cities.
Bhutanese residents in the Middle East have expressed optimism about the new route. Sangay Choden, a Bhutanese living in Dubai, shared her excitement, recalling the challenges posed by the lack of direct flights. “Previously, we had to travel all the way to India, often enduring layovers of up to seven hours. This new route is expected to ease our journey significantly,” she said.
She added, “Having direct flights with our own airline will provide a more convenient travel experience to our destination.”
Similarly, Tashi Dema, who resides in Kuwait, emphasized the importance of the new service for those returning home for vacations. “This will greatly enhance convenience for all of us Bhutanese who have faced difficulties with connecting flights,” she remarked, highlighting the frustrations of long layovers and extended waiting times.
With the introduction of the new flight services, Dema is hopeful that these issues will be alleviated, allowing for a smoother travel experience. “I believe everyone will appreciate this helpful and thoughtful initiative,” she concluded.
In 2023, Drukair operated a total of 3,996 flights, a notable increase from 1,944 flights in 2022. This expansion in flight operations resulted in carrying a total of 201,979 passengers compared to 91,126 passengers in 2022. The increased flight frequency led to a significant rise in the load factor, reaching 67% from 60% in the previous year.
The country’s other airline services provider, Bhutan Airlines operates with a fleet featuring two A319 aircraft, accommodating 126 passengers. The airline’s services encompass daily flights from Bangkok to Paro via Kolkata, India, as well as three weekly flights to Delhi via Kathmandu.
By Tashi Namgyal, Thimphu
