Mountain Helicopters: Flying Far And Wide

Ang Dendi Sherpa
Managing Director
Mountain Helicopters Nepal
The company constantly looks at motivating the employees. We encourage our staff to provide feedback and we make efforts to address their concerns. We also allow our staff to work freely and provide handsome remuneration.
 
After the successful completion of its first year of operations, Mountain Helicopters Nepal is planning to increase its fleet size to five from three at present. The company will have the two new helicopters by October/November this year, according to Ang Dendi Sherpa, Managing Director of Mountain Helicopters Nepal.
 
The company was established in 2009 after a 17-member team disassociated itself from Air Dynasty, a successful helicopter company in its own right. Ang Dendi Sherpa, the Managing Director of the company says that the company enjoyed 60 per cent market share for the year 2010-11. After separating from Air Dynasty, the group of 17 that included five pilots, two promoters and others besides Sherpa thought about establishing an independent helicopter company.
 
The new company acquired the Air Operator’s Certificate (AOC) in September 2009, a month after the group’s separation from Air Dynasty in August that year. By December 2009, the newly established company had already bought its first helicopter from the US and began flying commercially. A second helicopter bought from South Africa was added within four months of the company’s operations, in March 2010. â€œWe bought our third helicopter from Spain. We consider having established a fleet of three helicopters within a year of commencing operations, a great feat,” Sherpa proudly states.
 
Promoted by six individuals, the company’s capital investment stands at Rs 450 million with 70 per cent bank loan and 30 per cent equity. The company is now a team of 45 professionals and has expanded its operations to three locations. With its rise in stature and growing fleet size, the company has hired 10 new engineers.
 
Mountain Helicopters is primarily focused on air taxi service and operates chartered flights most of the time. The tariff for chartering a flight per hour is US $ 2500. But for the Nepalis, the tariff is US $ 1250. The company’s clientele has 90 per cent foreigners. The company also offers services like pilgrimage, sightseeing, mountain flights and rescue operations among others.
 
Most flights are made in the Everest region which is the most preferred region for the tourists. Other preferred destinations include Makalu and Annapurna regions. The company has recently started service in the Simikot-Hilsa route catering to tourists bound for Kailash-Mansarovar, a great pilgrimage site for Hindus as well as Buddhists.
 
The company also wanted to operate air ambulance service but due to policy hitches, it has dropped the idea for now. Sherpa said, “We had even brought the necessary equipments. But the government policy required a separate AOC for that which meant a helicopter used as air ambulance can not be used for commercial passenger or cargo flights. So, we decided to focus on our regular services.” He adds, “I have seen patients with broken limbs or spine lying on the floor on board a plane or helicopter because these aircraft aren’t equipped to cater the patients. An air ambulance equipped with comfortable stretchers and manned by paramedics could have provided patients the vital relief needed before reaching a hospital.”
 
The ongoing Nepal Tourism Year (NTY) 2011 has not brought any excitement for the company. Sherpa explains, “The NTY has failed to make its desired impact. It is a foregone conclusion that the target of one million tourists is not going to be met. But we are still hopeful of an increase in tourist arrivals compared to last year.”
 
Mountain Helicopters treats safety as its primary focus and offers quality service to its clients to stay ahead of the competition. The company does not have any scheduled flights and it does not offer any special packages either. Sherpa says that it’s the dedication and commitment of his staff that has ensured the company’s success within a very short span of time. Sherpa doesn’t forget to extend his gratitude towards his employees and says, “The company constantly looks at motivating the employees. We encourage our staff to provide feedback and we make efforts to address their concerns. We also allow our staff to work freely and provide handsome remuneration.”
 
Though the company has no elaborate schemes spelled out as Corporate Social Responsibility (CSR) initiatives, it has helped many people from remote areas reach the capital city in time for emergency medical treatment. Sherpa says, “Many of them were not able to pay for the chartered flight and we had to provide the service free of cost for the sake of humanity.”
With new helicopters to be added, the company is planning to add pilots as well as engineers. Sherpa feels that the market lacks enough pilots. Threfore, fresh graduates from pilot training schools entering the market, pilots have to be hired from other countries as the demand excceds supply. Marketing is another priority for the company which is trying to further strengthen its market prospects along with service expansion.
 
SWOT Analysis
Strengths:
• A team of qualified and experienced
professionals
• Dedicated and committed staff
• Fleet of three helicopters.
Weaknesses:
• Limited aviation market
• New to the business
• Limited human resource
Opportunities:
• Growing market potential
• Nepal being a major tourist
destination
• Fleet expansion (planning to add
two helicopters)
Threats:
• Tough competition
• Unfavourable weather for operations

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