Cosmic Air looks to India for succour

As domestic market is getting saturated, Nepal based airline company Cosmic Air is looking towards international markets, mainly India.

After New Delhi and Dhaka, Cosmic Air launched its flight in the Kolkata-Kathmandu segment last Friday which was followed by Varanasi- Kathmandu yesterday.

Cosmic Air, a subsidiary of $500 million SOI group of Nepal, is expecting to register a 100 per cent growth in its turnover in 2005-06 against $50 million turnover in 2004-05, of which a significant portion is expected to come from India, said M B Mathena, managing director, Cosmic Air.

The company also planned to launch flights connecting other major cities in India including Mumbai, Bangalore and other international destinations namely, Bangkok, Myanmar, Bhutan within the next few months, informed Mathena.

Cosmic is expecting 80 per cent occupancy in Kolkata segment with 35 per cent capacity share. Cosmic is already enjoying a market share of 40 per cent in the Delhi route with a capacity share of 30 per cent, claimed Mathena. Cosmic is currently offering promotional offer as well as 'buy one get one free' offer during the first two months of operation.

Upendra Karki, director, marketing and sales further said that Cosmic is expecting to acquire 60 per cent market share within next 2 months. "We might look forward to extend the promotion offer looking at the market scenario," he added.

The company might be flying daily flights from the present frequency of three times a week, assured Buddhi Raj Bajracharya, minister for culture, tourism, and civil aviation, Nepal.

"The company shall soon fly regularly in Kolkata segment. Moreover, Kolkata will soon see re-entry of Royal Nepal Airlines in the route," assured Bajracharya. According to data released by Nepal Tourism Board (NTB), India accounted for nearly 31 per cent of the total international tourist during the period January-May, 2005.

"India is going to be a major contributor for passenger carrier like us. International market has been contributing 40 per cent of our revenue that is expected to rise significant. India is expected top contribute of around 60 per cent of the overall revenue in a couple of years time," said Mathena.