DRUK AIR

Introduction

Drukair Corporation Limited, the national airline of Bhutan, was established in 1981 and serves as a vital link for international travelers and a crucial component of the nation’s economy. The airline embodies Bhutan’s unique cultural heritage and commitment to environmental conservation, offering an authentic travel experience amid the stunning landscapes of the Himalayas. With a fleet of modern aircraft and a focus on exceptional service, Drukair plays a pivotal role in promoting tourism, enhancing connectivity, and fostering economic development in Bhutan.

Operational Excellence

Fleet Overview

Drukair’s fleet comprises a mix of modern and efficient aircraft, ensuring safety, comfort, and reliability. As of 2023, the airline operates the following aircraft:

Future Fleet Expansion: Drukair plans to expand its fleet by acquiring two more Airbus A320s in 2025 to cater to increasing passenger demand and enhance operational capacity. The airline is also exploring the addition of smaller regional aircraft to improve connectivity to remote areas.

Route Network

Drukair’s route network connects Bhutan with major cities across Asia and beyond. The current destinations include:

Strategic Route Expansion: The airline aims to introduce direct flights to popular tourist destinations such as Hong Kong and Dubai by 2026, catering to the growing demand from international travelers. Additionally, Drukair is exploring potential codeshare agreements with regional airlines to enhance its connectivity further.

Customer Service and Experience

Drukair places a strong emphasis on customer satisfaction and provides a range of services designed to enhance the travel experience:

• In-Flight Services: The airline offers a unique in-flight experience that showcases Bhutanese culture. This includes traditional meals made with local ingredients, the display of Bhutanese art and culture through in-flight entertainment, and a selection of Bhutanese beverages.
• Loyalty Program: The Drukair Frequent Flyer Program, “Druk Club,” rewards loyal customers with points that can be redeemed for discounts on flights, upgrades, and special offers. The program has seen a 25% increase in memberships since its launch in 2021.
• Digital Services: Drukair has enhanced its online presence with a user-friendly website and mobile app that enables passengers to book flights, manage reservations, and check flight status seamlessly. The digital services have improved customer engagement, resulting in a 30% increase in online bookings in 2023.

Financial Performance

Comprehensive Financial Analysis

Drukair’s financial performance has demonstrated significant resilience and recovery following the challenges posed by the COVID-19 pandemic.

2023 Financial Highlights

• Total Revenue: $30 million
  • Growth driven by increased passenger numbers and ancillary services.
• Operating Expenditure: $25 million
  • Operating costs increased due to global fuel price hikes and investment in service enhancements.
• Net Profit: $5 million
  • A notable recovery from the $1 million loss in 2022, reflecting improved operational efficiency and revenue management.

Revenue Breakdown

Future Financial Projections

• Revenue Target for 2024: Anticipating a revenue growth of 33% to reach $40 million, fueled by new route launches and increased marketing efforts.
• Cost Management Strategy: Aimed at controlling operational costs to maintain profitability, with a target expenditure increase capped at 15% for 2024.

Operational Efficiency

• Operational Efficiency Ratio: Improved from 80% in 2022 to 66.7% in 2023, showcasing enhanced cost management and productivity.
• Staff Training Programs: Continuous investment in employee training has resulted in a 15% increase in employee productivity, contributing to improved service delivery.

Governance Structure

Board of Directors and Leadership

The governance structure at Drukair is designed to ensure strategic direction, accountability, and regulatory compliance. The Board of Directors comprises individuals with diverse backgrounds and extensive experience in various sectors.

Compliance and Risk Management

Drukair adheres to stringent compliance regulations and operates within the framework established by international aviation authorities. The airline conducts regular audits and risk assessments to identify potential vulnerabilities and implement corrective measures.

Sustainable Practices

Commitment to Environmental Sustainability

Drukair is dedicated to integrating sustainability into its operations, reflecting Bhutan’s commitment to preserving its unique environment.

Environmental Initiatives

1. Carbon Offset Programs: Drukair has partnered with local NGOs to implement carbon offset initiatives. Since 2021, the airline has facilitated the planting of over 50,000 trees as part of its reforestation efforts.
2. Sustainable Fuel Usage: The airline is actively exploring the adoption of sustainable aviation fuels (SAF) and is committed to reducing carbon emissions by 20% over the next five years.
3. Waste Management: A comprehensive waste management strategy has been implemented, reducing inflight waste by 30% through recycling and composting initiatives. Drukair is also working towards minimizing single-use plastics in its operations.

Community Engagement and Development

1. Local Employment: Drukair is committed to local hiring, with 85% of its workforce being Bhutanese. The airline conducts regular training programs to enhance skills and promote career development among its employees.
2. Cultural Preservation: The airline actively promotes Bhutanese culture through in-flight services, featuring local cuisine and showcasing traditional arts and crafts in their terminals. Drukair also collaborates with local artists to display their work in the airline’s lounges and on-board.
3. Educational Initiatives: Drukair runs community outreach programs to educate local communities about aviation and environmental conservation, focusing on engaging youth through workshops and seminars.

Future Sustainability Initiatives

1. Green Fleet Development: Plans to acquire more modern, fuel-efficient aircraft, such as the Airbus A220, are in the pipeline. This initiative aims to further reduce the airline’s environmental impact and enhance operational efficiency.
2. Collaboration with NGOs: Drukair will continue partnerships with non-governmental organizations to promote environmental education, conservation efforts, and community development programs.

Conclusion

Drukair Corporation Limited stands as a beacon of Bhutanese heritage and commitment to excellence in the aviation industry. With a strong focus on operational efficiency, customer satisfaction, and sustainable practices, the airline successfully navigates the evolving challenges of the aviation landscape. The commitment to expanding its route network, enhancing service offerings, and engaging with the community positions Drukair as a critical player in fostering economic growth and international connectivity for Bhutan.

As Drukair looks to the future, its strategic initiatives, dedication to excellence, and community-focused approach will undoubtedly contribute to its ongoing success and the prosperity of Bhutan, allowing it to continue providing exceptional travel experiences that reflect the beauty and culture of the Kingdom.

References

1. Drukair Corporation Limited Official Website
2. International Air Transport Association (IATA) Reports
3. Civil Aviation Authority of Bhutan Reports
4. Industry Reports on Aviation in Bhutan
5. Sustainable Development Goals (SDGs) related to Aviation
6. Customer Testimonials and Feedback Surveys
7. Annual Financial Reports of Drukair (2022-2023)
8. World Travel and Tourism Council (WTTC) Reports

Appendices

Appendix A: SWOT Analysis of Drukair

Appendix B: Customer Satisfaction Metrics

• Overall Satisfaction Rate: 90%
• On-Time Performance: 85%
• In-Flight Experience Satisfaction: 88%
• Staff Friendliness Rating: 95%
• Likelihood to Recommend: 92%

History

The idea of starting the country’s own air services was mooted by the Late King, His Majesty Jigme Dorji Wangchuck. His great contributions to the building of modern Bhutan will be remembered with gratitude by the succeeding generations of our countrymen.

Airstrip inaugurated in Paro

An important milestone in the Aviation history of Bhutan and remembered as the day we brought Bhutan on the world’s air map. The airfield was capable of landing a Dakota airplane making it the first step in its history for which the credit is entirely given to His Majesty the Fourth Druk Gyalpo. Necessary help was provided by the government of India for the construction of airfield whose foundation was laid down by the Chief of Air Staff Air Marshall Arjan Singh on 24th October 1966. The Border Road Forces was entrusted with the important task and it was completed in March 1968.

On 23 March 1968, the Deputy Prime Minister of India, Shri Morarji Desai was invited to inaugurate the Paro airfield. The guest of honour flew in a special Indian Air Force aircraft. Dasho Tamji Jagar warmly received the esteemed guest with a Guard of Honour presented by the Royal Bhutan Army. The Deputy Prime Minister was accompanied by the Chief of Air Staff, Air Chief Marshal Arjan Singh DFC, Shri Kanti Lal Desai, Mr Duggal Finance Secretary to the Government of India, Mr Ashok Bhadkamkar of the External Affairs Ministry and other high Indian Officials and press reporters.

4th November, 1968

First Jamair Dakota flight was carried out successfully.

1980s – Highlights

1981

Airstrip inaugurated in Paro

We are here today because of the far sightedness and vision of one person –the Fourth King of Bhutan, His Majesty King Jigme Singye Wangchuck, the Fourth Druk Gyalpo. In 1981 April 5th through a Royal Proclamation by his Majesty, opened up the big blue sky and Drukair was born.

1983

Drukair commences commercial air services with two 18-seater Dornier twin turbo propeller aircraft.

Drukair Dornier-RGB

Drukair began operations from Paro with an 18-seat Dornier 228-200. Regular air service between Paro and Kolkata was established. This was the dawn of a new era in the kingdom’s march towards modernization, removing one of the major constraints to development of a land locked country. Her Royal Highness Ashi Sonam Chhoden Wangchuck inaugurated the kingdom’s first historic air services between Paro and Kolkata International airport on February 11, 1983.

Drukair began modestly with one aircraft and twice weekly flight between Paro and Kolkata.

Marking the beginning of air services in Bhutan, the Directorate of Posts and Telegraphs issued first day cover stamps in commemoration of Drukair, that were release by Her Royal Highness on the same day.

Drukair’s Second aircraft

A simple religious consecration ceremony marked the arrival in Bhutan and the installation of Drukair’s second aircraft into regular scheduled service on October 11. 1983. The aircraft was also a Dornier 228-200, made in West Germany, and identical to the first aircraft.

1986

Drukair’s second international destination established- Dhaka

On 30th October 1986, Drukair touched down, from Paro to Dhaka airport marking another historic moment establishing Bhutan’s second international destination.

First Bhutanese pilot at work

Captain Tenzin Tshering, 23 years, became the first Bhutanese pilot to fly Drukair. In 1st April, 1984, he joined Drukair. He flew side by side on the Paro-Calcutta and Paro-Dhaka routes along with the six Indian pilots.

1987

Proving flights for Drukair completed

February 21, 1987, Drukair completed evaluation of all three aircraft models that were being considered for purchase by Bhutan namely:

1. 50-seater ATR-42

2. 37-seater Dash 8 of Canada’s de Havilland

3. 86-seater four-engine jet BAe 146
First Bhutanese pilot at work

On 25th October 1987, Drukair operated its first flight to Kathmandu. The proving flight took 1 hour 38 minutes.Bhutan buys British jet

The royal government of Bhutan and British Aerospace signed the contract for the purchase of one BAe146 – 100 series in London.

1988

Drukair’s first cabin crew recruited

Drukair recruited nine (six women and three men) cabin crews for its new aircraft BAe-146. The cabin crews were referred through RCSC and based at Paro. Names of the first Drukair cabin crew:

1. Namgay Bidha
2. Karma Kinley
3. Khensee Wangmo
4. Yangki Wangmo
5. Yeshi Doma
6. Tashi Wangmo
7. Madan Chhetri
8. Phub Dorji
9. Tashi Tshering

Bhutan’s first jet aircraft inaugural

The BAe-146 series 100 aircraft began its service from Paro to Delhi on 26th November 1988. It added to the airline’s fleet of two Dornier aircrafts, which have been flying the Paro-Calcutta route since February 11, 1983.

1989

Paro to Bangkok inaugural flight

Drukair entered the competitive international aviation world by inaugurating its flight to Bangkok on 22nd January 1989 through the support and cooperation from Thai International Airways and the Royal Thai government creating history between the two countries.

Paro to Kathmandu inaugural flight

Drukair also established airlinks with Kathmandu. The BAe- 146 took off from Paro Airport at 1 PM on 18th February, 1989 with Captain Nightingale and Blagana at the controls.

1990s – Highlights

1990

Bhutan – Nepal Air services agreement

An air services agreement was signed by Bhutan and Nepal allowing Drukair, the Fifth Freedom Traffic Right of up to 2,080 passengers a year from Kathmandu to New Delhi. The bilateral air services agreement was signed on August 7, 1990.

1991

First Bhutanese aircraft engineers licenced

Drukair awarded Aircraft Maintenance Engineer’s licence to five Drukair Engineers in a simple ceremony at the office of Civil Aviation Department on 20th February 1991.

1992

Drukair buys second Bae-146

Drukair’s second jet touched down on Paro runway in December 24th 1992. The new jet had an updated instrument panel, in-built steps and other improved features. It could also fly up to 31,000 feet, 1,000 feet higher than the previous aircraft.

1993

First Bhutanese Captain

Drukair’s BAe 146 made its first flight with a complete Bhutanese crew on March 29 under the command of Captain Tenzing Tshering.Drukair launched Executive Class

Coinciding with His Majesty the fourth Druk Gyalpo’s birth anniversary on 11th November, the Royal Druk Executive Class, Drukair’s luxury section, was inaugurated on its New Delhi flight on November 11 with a separate check-in counter and a lounge at the airport as a part of the service.

1994

Drukair leased plane to private airline

Drukair signed an agreement with a private Cambodian air company, Kampuchea Airline, on July 26 to lease an aircraft for 38 days beginning August 4.

1995

First In-flight Magazine

Drukair released its first In-Flight magazine “TASHI DELEK” on 11th November, coinciding with His Majesty the fourth Druk Gyalpo’s birth anniversary. The magazine was scheduled to be published every two months.

1996

Drukair began its commercial flights to Mynamar

On November 11 Drukair, flew into Yangon, the capital of Myanmar, to inaugurate its new commercial route which was supposed to begin on January 6. The opening of the new commercial route was timed to coincide with the “visit Myanmar year” which began on November 18. Drukair was given the rights to carry 50 passengers between Yangon and Bangkok.

1997

Development of a new reservation software

To tackle numerous ticketing problems, a new reservation software system “Drukair Reservation System” was developed.

1998

Drukair resumed Dhaka Flight

Under a new agreement with Biman (Bangladesh’s national airline) Drukair resumed operations to Dhaka. The agreement allowed Drukair to fly to Dhaka where passengers wishing to continue were then supposed to be transferred on to a Biman flight for Bangkok.

2000s -Highlights

2000-2001

New Aircraft

Drukair and British Aerospace signed the final contract for the purchase of two new RJX – 82 seater aircraft.

In July, one aircraft was sent back to the United Kingdom for a regular checkup as some micro biological contamination was found on the wings and the aircraft had to undergo some repair work.

2002

Test Flight

Drukair conducted test flights for Airbus A319, in Paro on February 23 and 24.

2003

Boeing test flights in Paro

Boeing 737-700 aircraft carried out numerous test flights in February at Paro.Drukair signs agreement to buy Airbus A319

After years of discussions, demonstration flights and negotiations, Drukair finalized the purchase of two Airbus A319. The Airbus A319 replaced Drukair’s fleet of two BAe146 jets that were bought in 1988 and 1990.Inaugural Flights to Gaya

On 11th November Drukair inaugurated its flight to Gaya coinciding with His Majesty’s 48th birth anniversary.

2004

Drukair welcomed its first Airbus 319 in October with second Airbus expected to arrive in December. The Airbus had a carrying capacity of 118 passengers.

2011

Boeing test flights in Paro

Drukair welcomed its third aircraft, ATR 42-500, a 48-seater on lease.

Domestic Air Service

Drukair completed its test flights on ATR 42-500 in Bumthang and Yonphula airport.
Drukair flight KB 511 from Paro to Yonphula airport marked the launch and start of domestic air services to Yonphula, Trashigang, on the National Day.
Drukair also flew its first schedule flight to Bumthang in December.

2012

Drukair buys third Airbus

Drukair signed a memorandum of understanding with manufacturer Airbus at an air show, that took place in Singapore.
In the same year, Drukair also added its fourth aircraft A319 Airbus who joined the national airline’s fleet on September 1.

2015

Drukair welcomed its newest aircraft A319 registered as A5-JSW after the initials of His Majesty the Fourth Druk Gyalpo. The aircraft expanded Drukair’s fleet to five aircraft, four of which were A319s and one twin propeller ATR-42.

2018

Drukair opts for the A320neo

Drukair, signed a purchase agreement for one A320neo to support its growth plans and complement its existing fleet of three A319s on 20th April 2018.

2019

Drukair Took Delivery of ATR 42-600

Drukair’s brand new ATR 42-600 touched down at Paro International Airport at 10 am on the morning of 26 October 2019. The ATR 42-600, registered as JNW in honor of our beloved Gyalsey, was received in a traditional ceremony attended by Chief Guest, Her Royal Highness Ashi Dechen Yangzom Wangchuck. Her Royal Highness, along with dignitaries from other agencies, also graced a 30-minute flight.

2020

Drukair took delivery of its first A320

The A320neo landed Paro International Airport on 19 March 2020. The new Airbus A320 was registered as A5-JKW, in honour of His Majesty The King on February 21, coinciding with the 40th birth anniversary of His Majesty The King. Drukair’s A320neo is the largest aircraft to operate from Paro Airport.

2021

Drukair received Druk Thuksey Award from His Majesty The King

On the 114th national day, Drukair received the Druk Thuksey Medal from His Majesty on December 17 2021. On the same day Drukair also received Tokha from His Majesty as a gesture of appreciation from the throne.

Note: This Data May Change in Accordance to Time