Saturday, March 9, 2019

On The Wings of The Dragon: Part V

Bhutan the land of GNH is a much-coveted place - as a tourist destination. People yearn to come here - I know of a person who pined for 52 years to come to Bhutan - and he actually lived to fulfill his dream. Some come for bird watching, some for trekking and most of them come to observe our peculiar culture and tradition that is getting even more peculiar. But for the airline operators around the world, the land of the Drukpas is the last place they want to be in. Paro international airport is ranked among the most challenging airports of the world. Only a handful of pilots are certified to fly in and out of this airport.

The operating conditions are difficult. Depending upon the season, dipping temperatures and windy conditions, coupled with high altitude impose limitations on the operating hours of the aircrafts. At times aircrafts are able to carry only half their carrying capacity. Flight diversions and cancellations due to adverse weather conditions are a norm. Thus, notwithstanding the prevailing myth that Druk Air has a monopolistic situation in airline business in Bhutan, no international airline operators are willing to come to Bhutan. If that were not true, under the bilateral ATA/ASA agreement with the countries where Druk Air flies, other airline operators from those countries have the right to fly the Bhutanese airspace. But they don’t - because the passenger flow is minuscule and the operating conditions are extremely difficult, and the operating costs are prohibitive.

Thus, only a national flag carrier with a social mandate has the compulsion to operate in Bhutan’s existing conditions. This also means that we have to accept that Druk Air cannot be mandated to make profits - there is simply no way it can, UNLESS IT DOES SO AT THE COST OF OTHERS, AND OUR NATIONAL INTEREST. Therefore, the next best thing for the government and for the airline company is to focus on up-scaling carrying capacity, service, safety and security - to work towards creating the enabling conditions for others to generate jobs and income. In other words: support the tourism industry - by rationalizing their fares and increasing carrying capacity. What the airline cannot make, the tourism industry will augment a hundred fold.

Druk Air has a total of 4 aircrafts. It operates to 3 domestic destinations and 9 international ones. Each of their aircrafts costs hundreds of millions. Their insurance and depreciation costs are huge. They have, by virtue of necessity, abnormally high operating costs. But this is something that is not within their capacity to control. There may come a time when Druk Air can operate as a commercial entity - but that time is not now. For now Druk Air must focus on complementing the vitally important tourism industry - help it grow and contribute to nation building.

Today, the Druk Air’s airfare is a deterrent to the growth of the tourism industry. The following is a demonstration of how expensive their airfare is - prospects terminate discussion the moment they hear of the fare - they say that they can fly from USA to Bangkok and back - and yet it will not cost as much. They say that we are taking advantage of them.

Druk Air's airfare as a percentage of total tour cost at the TCB designated Minimum Daily Tariff of US$ 250.00 per person per night halt


Druk Air's airfare as a percentage of total tour cost at the discounted rate of US$150.00 per person per night halt, at which some tour operators are rumored to be selling at

The Druk Air should take pride in the fact that from day one of its creation - the national flag carrier has achieved one very, very important national objective - it has unshackled Bhutan from the bonds of landlockedness. It has given wings to the Bhutanese people - to traverse the world beyond. That is an incomparable achievement - way beyond monetary gains - simply priceless!

But there is a failure that needs pointing out. Now I do not know who must bear responsibility for it - DHI, Government, BOC/BOD or the airline.

Druk Air started domestic flights on 19th December, 2011 - to Bumthang and Yonphula. It started its service to Gelephu on 25th October, 2012. More than seven years after the domestic flights began, Druk Air’s services in the domestic sector remain pathetic. There is a huge demand for domestic flights from tour operators - but the airline has not been able to meet the demand.

Druk Air's inaugural flight to Gelephu on 25th October, 2012. I had the privilege to be on board this flight.

At the core of their failure, I suspect, is one single factor: BOWSERS.

Bowsers are fuel tankers that deliver jet fuel to the aircrafts. This is an essential service that every airport must be equipped with. Gelephu airport does not have one. Yonphula airport does not have it either. Batpalathang does have it - but it is a leaky one. Because of this leaky condition, the aircraft’s Captains refuse to accept fuel from it - for fear that the fuel may be contaminated - a safety measure that cannot be compromised.

A Bowser refueling an aircraft

What is the implication here? The implication here is that for the past more than seven years, the Druk Air’s aircrafts have been required to carry tons and tons of extra jet fuel for the return flight, rather than passengers. As it is the load factor is less than half its carrying capacity, due to altitude and weather conditions. So you can imagine the loss the airline would have suffered - a loss that has been exacted on the Bhutanese people and the tourism industry.

Whose decision was it NOT to equip the airports with Bowsers, knowing the financial and safety implications? On whom must accountability be fixed?


................. End of Series

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