AVIATION

Can Guna Airlines compete the market as it readies itself for come back?

The authority’s opinion is that the decision to resume flights depends solely on whether all necessary work has been done for the safety of flights.

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Guna Airlines JetStream J41 - Aviation in Nepal

Guna Airlines, which ceased operations since the onset of Falgun in 2079 due to financial constraints, is reportedly gearing up to resume its flights. Efforts are being made by the airline to settle its outstanding dues owed to the Civil Aviation Authority of Nepal, including requests for installment plans for the repayment. Rajendra Shakya stands as the primary investor of Guna Airlines.

Rajendra Shakya is the main investor of Gun Airlines. Guna Airlines has a total amount of five crore rupees that is to be paid to CAAN. Out of 5 Crores, 1 Crore that had been kept as collateral security in the bank by the carrier has been seized by CAAN already. Now, there remains four crores rupees to be paid. The airline is preparing to resume flights with a monthly rate of 2.5 million rupees and is making preparations for the resumption of flights.

As the carrier is going through a deep financial crisis, the authority will also study how the airline has managed its finances. The authority questions how successful the airline will be in resuming flights with the same small aircraft if it cannot afford to pay its employees’ salaries.

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It has been a year since Guna’s flights were suspended. Pilots’ training is pending. Most of the staff have been laid off. The authority’s opinion is that the decision to resume flights depends solely on whether all necessary work has been done for the safety of flights.

Even though there were 7 aircraft with Guna, when they ceased operations, only 3 aircraft were operational. Currently, these 3 aircraft are not flying either.

Buddha and Yeti airlines are currently flying with ATR – 72 that has been proven in the Nepal’s aviation market. However, Guna, which purchased 5 aircraft with Yeti, including 28-seater Jetstream J41 and 19-seater Beechcraft 1900 C aircraft, doesn’t yield good performance compared to Yeti and Buddha’s aircraft.

For instance, when Shree Airlines used an 80-seater aircraft for Pokhara flights, Guna’s usage of 28-seater aircraft didn’t prove profitable. Additionally, out of 7 aircraft, 4 have already been grounded. The costs to make them airworthy are significant.

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Some grounded aircraft are currently parked at the airport. The reason is that if Guna decides to resume flights with the same Jetstream, it will definitely face another crisis, according to an executive of an airline. According to their operation, if any airline does not use aircraft for flights and grounds them for years, it indicates financial crisis within that airline and affects aviation safety.

During the one year of suspension, Guna was at times looking to sell its aircraft, and at other times, the company itself was seeking buyers. However, after failing to find any, they are now preparing to resume flights. The authority suggests that with the indication of price hike in internal flights, companies with smaller aircraft may not sustain flights.

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