AVIATION
Navigating Turbulence; Yeti Airlines’ Journey from almost Bankruptcy to adding 5 new ATR-72 within 2024.
In a bold move towards further expansion and financial stability, Yeti Airlines is preparing to offer an Initial Public Offering (IPO) to the public within the year.
Yeti Airlines, commemorating its 25th anniversary, has intensified its ambitious investment endeavors in recent times. With Asian Life Insurance holding a 49% stake, the airline is gearing up to secure over 5 billion in investments within a year. Earlier in February, Yeti Airlines procured two ATR 72 aircraft at a cost of 2 billion, and now, plans are in motion to acquire three more aircraft by the end of 2024.
Chairman Lakpa Sonam has outlined the vision to augment the airline’s fleet to ten aircraft, up from the current seven. Each aircraft’s estimated value stands at around 1 billion rupees, with plans to allocate 3 billion for the acquisition of three additional planes. These expansion initiatives come on the heels of overcoming financial adversity, exacerbated by the COVID-19 pandemic and a previous crisis triggered by an ATR aircraft incident in Pokhara.
To address financial exigencies and facilitate aircraft procurement, Chairman Sherpa is contemplating various strategies, including securing loans from banks, albeit at high interest rates, or enticing internal shareholders. Notably, the partnership with Asian Life Insurance was forged during a prior financial crunch when banks hiked interest rates and demanded prompt repayments.
In a bold move towards further expansion and financial stability, Yeti Airlines is preparing to offer an Initial Public Offering (IPO) to the public within the year. Presently, the airline caters to domestic routes covering key destinations in Nepal, including Kathmandu, Chandragadhi, Biratnagar, Janakpur, Simara, Pokhara, Bhairahawa, and Nepalgunj, alongside charter and non-scheduled international air services.
Yeti airlines newest addition of Two ATR-72 from NovoAir Bangladesh – 9N-AOF and AOH.
9N-AMM, 9N-AMN, 9N-ANG, 9N-ALN, 9N-AMZ, 9N-AOH and 9N-AOF are the seven ATR-72 aircraft currently in Yeti Airlines fleet with an average age of 15 years, an airline with the youngest fleet age in Nepal as published by CAAN earlier. Yeti Airlines have had a turbulent history due to frequent crashes yet, it has attracted a good amount of foreign as well as domestic passengers.
