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Works under GoI assistance at Paro International Airport 

Projects under GoI assistance include the following:
 

i) Permanent River Protection Works 
Consultancy works for the preparation of design, drawings and cost estimates including evaluation of bids were completed by early March 2011. However, work award was stopped after the Mid-Term Review of Paro Dzongkhag on 02 February 2011 following the Government decision to combine river protection works with the construction of a road. The work, along with committed budget, has now been formally handed-over to the Ministry of Works & Human Settlement to be taken-up as one package. Construction works are planned to commence by around October 2011. There will be a need for additional resources to cover the road component. 

ii) Enhancement of emergency response capability/expansion for Paro Airport 
o Fire station and security accommodation: Consultancy work for design, drawing and cost estimation is completed and currently the bids are being evaluated for awarding the work soon thereafter.
o Runway turn pads: Work order issued in April 2011. 
o Expansion of terminal building: Draft consultancy report for design, drawing and estimates received in April 2011. Work will be tendered out immediately after the final report is received. 

iii) Improve communication and navigation aid technology 
o Work awarded in April 2011 for the modernization of the Voice communication system; 
o Improvement of power supply system through the procurement of Uninterrupted Power Supply System and generators has been completed. 

International air services 

i) Number of air travellers has seen a modest increase of 13% from 120,769 in 2009 to 136,414 in 2010, as shown in the table below: 

Table: Drukair Passenger Flow – 2010 and 2009, segregated by sectors 

Sector

JANUARY-DECEMBER

 

Year 2010

Year 2009

 

Paro to

 

Delhi

11479

10139

 

Bangkok

24361

22159

 

Kathmandu

10509

8597

 

Kolkata

11450

8070

 

Gay

751

1026

 

Dhaka

2952

1530

 

Bagdogra

2033

1302

 

Guwahati

118

 

Sub-total

63653

52823

 

to Paro

 

Delhi

12032

10037

 

Bangkok

24560

22410

 

Kathmandu

10675

8825

 

Kolkata

10374

7614

 

Gaya

850

897

 

Dhaka

2964

1407

 

Bagdogra

1965

1289

 

Guwahati

108

 

Sub-total

63528

52479

 

Kathmandu/Delhi

0

2037

 

Delhi/Kathmandu

0

1102

 

Kolkata/Bangkok

0

1664

 

Bangkok/Kolkata

11

1586

 

Gaya/Bangkok

707

1447

 

Bangkok/Gaya

625

1415

 

Dhaka/Bangkok

2254

2720

 

Bangkok/Dhaka

1835

2377

 

Bagdogra/Bangkok

1819

649

 

Bangkok/Bagdogra

1716

470

 

Guwahati/Bangkok        

180

 

 

Bangkok/Guwahati

86

 

 

Sub-total

9,233

15,467

 

Grand Total

136,414

120,769

 


ii) Paro - Bangkok sector is the most frequently travelled sector for Bhutanese for many reasons – holiday, business, medical treatment and the prefererd transit hub for travel beyond Bangkok. It also remains the most frequently used sector for travel to and from Bhutan by tourists followed by Delhi, Kathmandu and Kolkata.

iii) Introduction of scheduled air services to Guwahati in 2010 has particularly benefitted people in the eastern region. Low passenger volume is however a concern for the airline. 

iv) In an effort to continue expansion of air route network to improve aircraft utilization and financial performance, as well as help in achieving the target of 100,000 tourists by 2012/13, the following activities have either been completed or in the pipeline: 

  • Air Services Agreement (ASA) signed with the Maldives on 8 May, 2011; 

  • Amended ASA signed with Bangladesh on 17 May 2011, allowing Drukair to use all airports in Bangladesh and also operate beyond Dhaka to Singapore, Sharjah (UAE), Kathmandu, Pakistan (place to be identified), and all Indian cities except Kolkata; 

  • Discussion for signing ASA with Singapore, the State of Qatar, Hong Kong and the amended ASA with Nepal in the pipeline; 

  • Signing of ASA with remaining SAARC countries initiated as a larger plan to air-link all SAARC capitals 

The following matrix summarizes the trend, challenges and expectations: 

Trend   

  • Growing air travellers for business, holidays,medical treatment and studies 

Challenges

  • Problem with retaining staff in critical posts. 

  • Non-availability of aviation professionals and high cost of training.

  • High cost of Infrastructure & Facilities.

Looking ahead

  • Strengthen policy & legal instruments to create level playing field 

  • find options to retain staff in critical posts 

  • launching domestic air service by autumn of 2011

  • privatization of airport services and encourage competition in the aviation sector. 

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