Danfe Airlines set to begin ATR 72-600 operations by Dashain-Tihar

KATHMANDU: Nepal’s aviation sector is set to welcome a new entrant as Danfe Airlines prepares to begin commercial operations with an ATR 72-600 aircraft during the upcoming Dashain-Tihar festive season.

The company initially plans to commence operations with three ATR 72-600 aircraft.The airline is currently in the final stages of selecting and acquiring the aircraft, with plans to commence commercial flights from around Kartik (October-November), according to Chief Executive Officer Abhishek Man Shrestha.

Danfe Airlines received a No Objection Certificate (NOC) from the Civil Aviation Authority of Nepal (CAAN) around four months ago and is now advancing the aircraft acquisition process.

“We have been delayed from our original business plan as the aviation market was affected by the US-Iran conflict,” Shrestha told Fiscal Nepal. “We are currently working on aircraft selection and negotiations and are targeting the launch of commercial flights during Dashain-Tihar.”

Why ATR 72-600?

Danfe Airlines has opted for the ATR 72-600 after finding limited availability of ATR 72-500 aircraft that are less than 15 years old.

The airline says the decision has also been made after assessing the current operating environment, in which domestic airlines are facing rising costs and increasing pressure to optimize flight operations.

“All airlines are currently under pressure to consolidate and optimize their flight operations, while aviation fuel prices remain high,” Shrestha said. “As a new airline preparing to enter the market, we are carefully analyzing the current environment and developing our business plan accordingly.”

The company is also preparing to send its flight crew for simulator training in the near future as part of the final preparations for commercial operations.

New airline enters a challenging market

Danfe Airlines’ planned entry comes at a time when Nepal’s domestic aviation industry is facing significant financial and operational challenges, with several airlines struggling to remain financially sustainable.

Despite the difficult market conditions, the entry of a new airline is expected to increase competition in Nepal’s trunk-route aviation market.

Danfe Airlines is being launched by a new group after reviving and rebranding the operations of Makalu Air, which ceased operations around a decade ago.

The government has updated Makalu Air’s operating licence and issued an internal air service operating licence under the name Danfe Aviation Corporation, valid until September 14, 2027 (Bhadra 29, 2084).

The company plans to build its operations around the ATR 72-600, a widely used regional turboprop aircraft designed for short- and medium-haul routes.

Competition set to intensify on trunk routes

At present, Buddha Air, Yeti Airlines and Shree Airlines operate regular commercial flights on Nepal’s major trunk routes, while Tara Air, Summit Air and Sita Air primarily serve remote and mountainous destinations.

The entry of Danfe Airlines is expected to add another competitor to the market for flights connecting major cities and accessible destinations.

Industry observers say the airline’s success will depend on its ability to manage aircraft acquisition costs, fuel expenses, maintenance, crew training and fleet utilization in a market where airlines are already under significant financial pressure.

For Danfe Airlines, the planned launch during the Dashain-Tihar travel season could provide an opportunity to enter the market at a time when domestic air travel typically experiences increased passenger demand.

The airline’s arrival also signals continued private-sector interest in Nepal’s domestic aviation market despite the industry’s ongoing challenges, while its choice of the ATR 72-600 indicates a strategy focused on operating a modern regional aircraft suited to Nepal’s domestic route network.