«Majestic» Bhutan – Key Figures
• Druk Yul» : Land of Thunder Dragons • Habited since BC 2000 • Independent through history • 38.000 km2 (1/20 of Turkey) • 700.000 Inhabitants (less than 1% of Turkey) • Buddhism since 7th Century AD

• Bhutan was under 1974 a Shangri-La (politically and geographically isolated from the West)
• GPD per capita : 2.100 US$ (1/5 of Turkey) • In this Shangri-La wealth wasn’t measured in GDP but GNH–Gross National Happiness • Absolute monarchy until 2008 • Since 2008 constitutional monarchy

Bhutan – History & Culture & Tourism
• Bhutan until 1974  Shangri-La, (geographically and politically isolated) • In 1974, tourism started with 287 tourists • First telephone in 1974 , first TV in 1999.

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2.850 Tourist in 1992,
7.158 in 1999, 64.000 in 2011 "High Value, Low Impact Tourism"  Min. impact on unique society Tourists (except Indians) pay per day $200 (low season) and $250 (high season) McKinsey survey result  Scrap $250/day, you will reach one million tourists Answer of the dragon king I want to protect my buddist culture

Enterpreneur – Mr. Dasho Ugen Dorji
• • • • All Kings of Bhutan since 1952  Members of Dorji Family Tashi Group of Companies founded in 1959 by Late Dasho Ugen Dorji (cousin of the king) Chairman of the Group  Dasho Topgyal Dorji (Son of founder) Dorji was dispatched to India for boarding school.

• From age 5 he studied at the Jesuit St. Joseph’s School in Darjeeling,

• High school and college in New England in the U.S
• Masters degree in metalurgy in Norway • • The group owns40 companies and 3.000 employess Leader in Bhutan by following sectors: Retail, Construction, Banking, Chemicals, Export, Carpet, Automotive, Telecom, Hotel, Beverages and Air Travel.

Tashi Air – Key Figures
• • • • • • • • Founded December 2011 official name Bhutan Airlines Bhutan’s first private airline Ceased Operations between June 2012 – October 2013 Headquarter/Hub: Paro Airport 2 Airbus 320 (122 seats) + 1 Pilatus (8 seats) (THY:265 planes, 40.000 seats) Total number of captains: 4 (!) (THY : 2.670, there of 350 foreigners) Destinations: 5 (Paro, Kolkata, Bangkok, Kathmandu, Delhi) Local competitor : Druk Air ( 4 planes, 14 destinations)

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Paro Airport
• • • • • • Founded in 1968 2.000 m signle runway, longest in Bhutan Only international airport in the country Worlwide one of the most challenging due to 5.500 m high mountains Flights only under visiual meteorological conditions and restricted to daylight As of 2010 only 8(!) pilots are certified for landing

Single Competitor – Druk Air
• Founded in 1981

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4 Airplanes and 14 destinations
Belonging to Royal Family of Bhutan (Cousin of Tashi Air)

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207.000 Passengers in 2013
Daily aircraft utilization of about 5.5 hours (THY: 12.7 Hours)

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Total number of captains: 16 (THY : 2.670, there of 350 foreigners)

Competitor Pricing – Tashi Air vs. Druk Air – High Season

Competitor Pricing – Tashi Air vs. Druk Air – High Season

Competitor Pricing – Tashi Air vs. Druk Air – Low Season

Competitor Pricing – Tashi Air vs. Druk Air – Low Season

Tashi Air – Mission&Vision&Values
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Mission: Provide a safe and reliable airline to its customers Offer an alternative choice in air travel to and out of Bhutan. Motivate its employees to the highest standards Ensure the best & personalized services on ground and air Create a brand for bhutan airline to be personal airline of choice Vision To become the most friendly, competitive and preferred airline in the region.

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Values Safety – our highest concern Customer satisfaction - our highest priority Openness to change – our willingness to accept Integrity & honesty – our ultimate goal

Tashi Air – Porter’s Five Forces Model
• Big obstacles for new entrants • Difficult Market to get in

• Number of Customers gradually increasing • Investing on tourism by Government

• Main and only competitor, Druk Air • Difficult Market to get in

• Small size of operations

• Performing better because it is subventioned by goverment

Tashi Air – Corperate&Global Strategy
• Tashi Air is inline with the Country Strategy
• Bhutan Goverment’s target is the increase in the number of tourist visited by keeping the «quality» of the tourists • Tashi Air target is the increase in the number of destinations • In 2013 new governmental strategy is putting GDP ahead of GNH for the first • Tashi Air main target is the increase in profits

Tashi Air – Capabilities & Resources
Competitive Advantage STRATEGY Industry Key Success Factors

Organizational Capabilities

Tangible
Being Royal Family Financial strength

Intangible
Being Royal Family Reputation due to success in different sctors Easy access to other resources

Human
Being Royal Family Special pilot licences

Tashi Air – Opportunities
Promote Bhutan culture & hospitality in international destinations

Better dress for stewardes

Marketing campaigns

Combine visa with airline

Interactive actions

Tashi Air – Sustainability
• Tourism potential of Bhutan will remain as unique if the country and the companies preserve the nature & culture of Bhutan

Tashi Air – Strategical Recomendations
• Actual customer profile of Bhutan Airlines consists of tourists (except Indians) who are ready to pay 250 $/day. If this fee is cancelled customer profile may be parallel to rest of world  Low cost carriers

Low Cost Business Model

Target Market; It is not a luxury, everybody has the right to fly.

Differentiation&Positioning Low Cost Model - Low Cost (similar to Michael Porter’s Overall Cost Leadership Strategy) - The services (meal, drinks, etc) which increase the price are not including.