CAAN permits Simrik Airlines to resume its flights

The aviation sector regulator has permitted Simrik Airlines to resume its flights after temporarily suspending its scheduled flights for 18 days.
“Simrik Airlines has received the flight operation permission from CAAN today after the airlines completed all the tasks directed by CAAN,” confirmed chief of Marketing and Sales Department of Simrik Airlines Prajol Thapa.
Earlier, the Civil Aviation Authority of Nepal (CAAN) had suspended all flights of Simrik Airlines on August 20 after the airlines failed to meet the technical standard of airworthiness requirements under the Civil Aviation Regulation. The inspection team of CAAN had discovered that the airline company was using substandard spare parts in its aircraft. The CAAN had ordered the airlines to replace its spare parts and conduct the required maintenance of its aircraft.
The airlines has asked the regulator to lift its ban. But on August 23 CAAN refused to lift the suspension of flights of Simrik Airlines saying that documents presented by the airline were inadequate. The CAAN has also asked the airlines to submit more documents. Simrik Airlines again submitted additional documents on Tuesday to CAAN.
According to the Civil Aviation Regulation, CAAN can issue an order to cancel the airworthiness certificate of the aircraft or suspend flights in case an aircraft is flown in contrary to the terms and conditions mentioned in the airworthiness certificate provided to any aircraft and the prevailing laws related to civil aviation.
According to Simrik Airlines, it will resume its scheduled flights from Saturday.
Established in 2009, Simrik Airlines has been operating domestic flights to Bhairahawa, Bharatpur and Pokhara with its two Beechcraft 1900 series aircraft.

Missing Nepal Airlines aircraft found crashed

The wreckage of missing Nepal Airlines aircraft 9N-ABB has been found today morning at the Mashinelek hill – about 250 km west of Katmandu – Khachikot in Arghakhanchi district by local youth.

Immediately after the information, rescuers reached the site, where they found the wreckage of a plane that had slammed into a mountain and burst into flames, killing all the 18 passengers and crew, including a Danish tourist aboard.

The aircraft was missing since yesterday afternoon, half an hour after it took off from Pokhara for Jumla. The downpours and bad weather prevented search operation yesterday evening.

However, the crash site has been identified by tracking mobile of a passenger, who was Nepal Army Major Deepak Shrestha.

The rescue team led by Nepal Army from the Chandan Nath Batallion walked for 13 km to the crash site, where the wreckage of twin otter aircraft and bodies were scattered around.

Nepal Airlines has claimed that the aircraft was technically airworthy but the bad weather played foul causing the crash at the mountain. Experts suspect either heavy snow or the wind took the aircraft down to slam into the mountain.

A Simrik Air chopper lifted the bodies – using ropes and nets – from the crash site and took to the Army barrack, from where bigger Nepal Army choppers flew them to Tribhuwan International Airport in Kathmandu.

Doctors at the Tribhuwan University Teaching Hospital will perform autopsies before releasing the remains to the relatives of the victims.

The cockpit voice recorder – also popularly known as black box – was also recovered from the crash site of the de Havilland Canada-manufactured 42-year old Twin Otter.

The government has formed a four-member investigation committee led by former director general of Civil Aviation Authority of Nepal (CAAN) Tri Ratna Manandhar. The committee will report in 60 days.

Though, a total of 110 people died in the Nepal Airlines air crashes till date, around 97 people have died in six air crashes since 2010 only.

The ailing national flag carrier that used to own 12 Twin Otters once upon a time – has been now left with only one aircraft for the domestic operation after the fatal crash of Twin Otter 9N-ABB yesterday.

Nepal Airlines Corporation that had scheduled 22 flights a day with its two Twin Otter aircraft is now is reducing operations to half due to lack of aircraft.

However, it has hoped to revive its domestic operations with new Chinese  aircraft that are scheduled to be delivered on April 16. The corporation that has been incurring Rs 170 million annual losses is hopeful of expanding its services to remote hilly districts after it receives all the six Chinese aircraft by this October. The first of the six aircraft on order – two MA60 and four Y12e – is scheduled to arrive by mid-April. The corporation has plans to operate MA60 on Biratnagar, Pokhara, Bhairahawa, Nepalgunj and Bhadrapur routes, whereas the smaller Y12e will be used on remote sectors. It has also claimed that Harbin Aircraft Manufacturing Corporation that produces the Harbin Y-12 is an alternative to the Twin Otter.
Due to lack of aircraft, the number of NAC passengers in 2011 dropped by 2.31 per cent to 45,990 shrinking the market share to 2.90 per cent. In 2012. NAC passenger occupancy rate dropped 19.82 percent to 36,874, whereas it could not improve in 2013 too.

During its heydays, NAC used to operate 18 aircraft – 12 Twin Otters, three Avros and three Pilatus Porters – to 42 destinations across the country. Between 1972 and 1979, the Canadian International Development Agency donated seven Twin Otters to the corporation. The Canadian-built Twin Otter, a 19-passenger aircraft with STOL capability and a high rate of climb, was the most suitable aircraft for serving Nepal’s remote and mountainous regions.

The Twin Otter made its first appearance in Nepal in 1970 as a replacement to the DC-3 Dakota, the workhorse of the then Royal Nepal Airlines Corporation (RNAC). 

However, the European Union in December banned all Nepali airlines from flying to Europe because of poor safety records.

Simrik Air flies 63,000 passengers in a year

Simrik Air flew some 63,000 passengers in the first year of its operation.

The airlines that started with mountain flight a year ago, today, has been flying to Pokhara, Bhairahawa, Simara and Lukla with its two 19-seater Beech craft and two 19-seater Dornier aircraft, according to the airlines.

The airlines has around 85 to 90 per cent occupancy, it said, adding that it is planning to add flight frequency to Lukla from next month, and adding new route on Pokhara-Jomsom and Kathmandu-Tumlingtar soon.

Simrik Air leases entire fleet of Agni Air

Simrik Airlines from today officially started operations to Lukla with 17-seater Dornier 228 aircraft leased from Agni Air as it has leased the entire fleet of five aircraft from the debt ridden Agni Air.

"Simrik Airlines leased five aircraft of Agni Air after signing a tripartite five-year lease agreement between Agni Air, Simrik Airlines and a consortium of banks led by Grand Bank Nepal,” said executive director of Simrik Airlines Captain Rameshwor Thapa, without giving any details of the lease agreement.

The initiative might help Agni Air revive and prevent it from complete collapse as Simrik Airlines is now liable to repay loans worth Rs 570 million with interest borrowed by Agni Air from Grand Bank. Simrik will also have to repay loans of Rs 150 million to Rs 200 million acquired under consortium financing from two other financial institutions.
According to the agreement, Simrik Air will have to share the profit earned through the operation of the leased aircraft with Agni Air that had started for looking potential buyers after it suffered from worsening financial health due to huge bank loans and staff payment dues.

Grand Bank, along with Sunrise Bank and International Leasing and Finance Company, had financed Agni Air but the airlines failed to repay loans worth more than Rs 600 million to the banks due to the airlines key promoter Sudhir Basnet's huge real estate exposure.

Simrik Airlines will operate Agni's another Dornier aircraft after three months and in next three months, the company plans to operate all the three remaining Jet Stream aircraft, according to the agreement that stated that once the lease agreement expires, the aircraft will be returned to Agni Air.

Though the aviation market has high demand of aircraft, the domestic airlines have not been able to fulfill it,” said chief executive of Grand Bank Sudhir Babu Khatri. He hoped that the lease agreement will create a win-win situation for both the banks and the airlines.
Agni Air had started operations in 2006 with three Jet Stream and two Dornier aircraft, whereas Simrik Airlines had started regular flights with Beechcraft 1900 in February 2013.
At present, Simrik operates flights on Pokhara, Bhairahawa, and Simara routes and with today leased Dornier 228 aircraft it has extended flights on Lukla route, whereas Agni grounded all its aircraft after its failure to pay bank loan.

Namaste Air ready to take off

Namaste Air — a new domestic airlines — is ready to start its operation within this fiscal year.

"Namaste Air signed an agreement today with Agni Air to start flights with Agni's aircraft," said executive chairman of Namaste Air Raju Khatri.

Namaste Air has agreed to acquire Agni Air's two Dornier aircraft — in the first phase — to start its domestic operations, he said, adding that the airlines will also operate Agni's three Jetstream aircraft — in the second phase — from a month after its operations.

"From October, the airlines will have its own fleet of ATR 72-500 aircraft to operate," he added.

"Namaste Air has completed all the legal, technical and financial arrangements for its operations," said Khatri, adding that the airlines will fly to Pokhara, Bhadrapur, Biratnagar, Nepalgunj, Bhairahawa, Jomsom, Lukla, Dhangadi and Bharatpur, besides mountain flights.

The grounded Agni Air that has been in trouble due to its key promoter Sudhir Basnet's downfall in the real estate business has agreed to hand over its five aircraft — two Dornier and three Jetstream — to Namaste Air.

Agni Air had posted around Rs 280 million profit in the last fiscal year but the bubble burst in the real estate business has pushed its promoter Basnet to bankruptcy leading to the grounding of Agni's aircraft. Agni had around seven per cent share in the domestic air traffic while it was flying.

Earlier, Simrik Air had acquired Guna Air as the later was also in troubled waters.

Around seven airlines, including Nepal Airlines, are flying in the domestic sky that was opened after the liberal sky policy post-1990 movement.

At present, Civil Aviation Authority of Nepal has issued Air Operator Certificate (AOC) to 19 airlines, though all of them have not yet started operations.

Simrik Air officially starts commercial flights

Simrik Airlines has officially started its commercial operations.
The airline that had started operation with mountain flight a week ago on February 10, has also started scheduled flight to Pokhara from last Wednesday — February 13 — with a fleet of 19-seater Beechcraft, according to executive chairman of Simrik Airlines Rameswhar Thapa.
The airlines is planning to start more scheduled flights — daily two flights to Simara and one flight to Bhairahawa — soon, he said, adding that the airlines will focus on international safety standard.
Earlier, Simrik Air used to operate helicopter services only. But after taking over the management of troubled Guna Airlines at Rs 350 million last month, it has started its scheduled flights, Thapa added.
Guna Airlines faced rough weather after its promoters run out of the cash due to the problem in their housing and real estate business that has forced them to hand over the management of the airlines to Simrik Air.
Despite increasing number of domestic private airlines, most of them are flying on trunk routes due to competition leaving the remote destinations out of their network.
"Currently, the airlines is operating four mountain flights and three flights to Pokhara daily," according to sales and marketing manager of Simrik Airlines Prajwal Thapa.
Post-1990 government had brought open sky policy that has made it easier for the private domestic airlines to take off.