Drukair and Bhutan Airlines face a challenging aviation environment in accelerating Bhutan tourism

The Government of Bhutan, previously reluctant to open the country to tourism, has set a target of 100,000 annual tourists, a considerable increase over the 30,000+ seen in recent years. Most will arrive by air, a tall order for a nation whose airlines have, at present, four aircraft with a total of 284 seats, and is not served by any foreign carriers. [2185 words]

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This report contains the following subheadings:

• Bhutan's airlines, airports, and government policy will be challenged to meet the new tourism target
• Paro the only international airport, with multiple obstacles
• The airport has fuel supply problems as well
• Most departures are (first) to nearby airports
• New Yonphula and Bumthang domestic service planned
• Domestic service brings a new airline, Bhutan Airlines
• Tourism policy may spur domestic growth
• New routes subject to securing aircraft
• China, potential but no plans as yet
• No external competition expected
• Growth pegged to even out current seasonality
• Operations are always 'contingent' and utilisation ceilings apply
• High costs are evident across the board
• Limited links to the larger aviation community
• Drukair's clear 'full service' model