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Tourism
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Domestic Air Services 2011
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Despite anticipation of low market demand, the government is sticking to its decision to allow two companies to operate domestic air services, according to communications minister Nandalal Rai.
"Both Tashi Air and Drukair are going to provide the service, that's the government decision," said Lyonpo Nandalal Rai. "Do you think I can desist from a government decision?" he said, adding, "The ministry cannot override the government decision."
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The minister was responding to a question on whether the decision to allow two operators could be reversed.
In December, the government announced that both Drukair and Tashi Air would provide domestic operations, despite the tender document or request for proposals (RFP) stipulating that only one company would be chosen.
Given the untested domestic air market, Tashi Air recently submitted to the communications ministry its concerns on the financial viability of such a move. The communication minister's verdict on the case comes after two internal meetings, one with Tashi Air and the other with Drukair, the government-owned airline.
Drukair CEO Tandin Jamso said the national airline is moving ahead with plans to commence domestic air services by April. He said the company was expecting the aircraft that will be used for domestic operations by March. He also pointed out that the company saw the government's decision to allow two operators as a means for "fallback", in case one company pulled out.
Recently, Nepalese airline Buddha air announced that it would terminate scheduled air services in March, as a result of low market demand.
A Tashi Air representative said the company would comment only after the government makes a formal announcement of its decision. It was learnt that the matter is still pending.
Meanwhile, Lyonpo Nandalal Rai said that domestic air operations might not commence by April 2011as initially planned. He said that it would depend on when the airstrips in Bumthang and Trashigang are ready. "There's been rethought on the lines of the infrastructure being ready; then only the service can start," he said. "As far as I'm concerned, theoretically, we're trying to have it operational by April, but knowing the practical realities on what is happening on the ground, I don't know."
| Source: Kuensel, Bhutan's National Newspaper, 2011 |
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