Drukair

History of Drukair

In the late 1960s, a small helicopter was built which was known as aircraft and it was located in
Paro Dzongkhag. The aircraft was purchased from India that helps to trade the air transport and
release the support from the Indian Army. Later, on fifth April, 1981 the Drukair was established
which falls under Royal Bhutan Airlines. The reasons to establish Drukair was the increasing
numbers of countrys population which was analyzed by the Royal and Government Officials. In
addition, growth of population leads to tourists and the necessity for the travel.

The following questions and answers for Drukair

1) Perform a strengths, weaknesses, opportunities and threats (SWOT) analysis of Drukair.

Strengths
Strength is positive attributes that includes resources and capabilities which helps to earn
profits or revenues of the business. Strength consists of some factors that affect operation
to the business. Firstly, since our country is small with beautiful environment, tourists
gets attract with Himalayas and natural resources of our environment. In fact, tourists are
interested to know the Buddhist tradition and culture. With these, it helps to built up the
Drukair reputation and more numbers of tourists will visit our country. Secondly, with the
increasing number of tourists Drukair provides a new innovative products and services.
That is purchasing another plane with the good up gradation. Later during 2004, Drukair
purchased two large Airbus 319 aircrafts which helps to carry numerous passengers.
Thirdly, in Drukair they mainly concerned the needs and wants of tourists. Tourists
interested are not only to travel towards west but also they want to experience in the east
region. Hence, the Royal and Government Officials built a short airstrip in Yonphula
located in Kanglung region. This encourages various tourists to visit in our country.
Fourthly, Drukair need not complete with others airlines because there are no
competitors. Thus, it is advantage to Drukair in order to increase tourist in our country
and generate a lots of revenues.

Weaknesses
A weakness is negative attributes that includes resources and capabilities which affect to
the business. Some of the factors of weakness which affect to profits and revenues are
firstly; Drukair provides poor services to tourists where procedures of payment of tickets
 Drukair

are long and complicated. In addition, it requires wire transfers. Secondly, there must be
changes in products such as, more available of seats. In Drukair, the cabin factors were
below the 80% which leads to earn less revenue. Normally cabin factors should be above
80% which helps growth and expand of the business. Thirdly, in Drukair there are some
of the technologies that are not fully developed. It will lead to weakness which will
directly affect the business. Such as tourism infrastructure, online booking, online
interlining system, domestic air services, and accommodation and transportation.
Fourthly Drukair has not linked with any foreign countries airlines. As a result there is
poor online booking systems which affect the tourist. Moreover tourists have to collect
two tickets at the time and it has long procedures to receive ticket.

Opportunities
Opportunity is scan based on external environment mainly for profit and growth of the
business. The Royal Bhutan Airlines known as Drukair consists of some of the
opportunities. Firstly, the special occasions and events open opportunity to Drukair. That
is the first democratic elections, a celebration of the Wangchuk dynasty and the
coronation of fifth king brings the increasing numbers of tourists in our country.
Secondly, tourism is the main source of operation in Drukair. The increasing number of
tourists plays vital role for opportunity to expand the business. In 2007, Drukair revenue
were 12 1,711 by carrying passengers. Thirdly, Drukair has opportunity to improve the
services of online booking and interlining between airline companies. In order to book
the ticket, tourists need to purchase extra ticket. For instance, I have booked ticket to
travel from Australia to Bhutan but I need to purchase extra ticket to fly from Bangkok to
Bhutan. Therefore, it is important to improve the services of the Drukair so that it
becomes easier for tourists to deal with it.

Threats
A threat is a challenge arises from unfavorable events that directly affect to profits or
revenues of the business. In Drukair, there are some of the issues that can affect to
Drukair. Firstly, landing the Drukair in Paro was complicated due to mountain tops,
winds and the narrowness of the valley. There are also hard procedures to land in the
valley which includes checking for minimum range and checking final approach to the
valley. Secondly, accommodation and transportation lead to decrease in growth of
 Drukair

tourism because it has poor services that cannot provide good standard living to tourists.
Thirdly, Drukair need to upgrade technology and improve the services towards online
booking and interlining between airline companies. Fourthly, Bhutan Business tourism
was seasonal where it made tough to deal t he demand in high season and in low season.

2) What opportunities are there for Drukair to increase its business?

The opportunities for Drukair to increase its business are firstly social media marketing is
one of the opportunities to which helps to promote the business. Drukair can organize in
services by advertising in online videos, YouTube and goggle. Hence it helps to promote
and provides information to public about Drukair which helps to increase business.
Secondly personnel touch means being close with tourists and knowing welfare of the
tourists. The welfare of tourists is the result of the product and services they used must be
benefit. In addition identifying needs and wants of tourists which will make them satisfy.
Thirdly keeping a strong relationship with tourists is very important. Once the travel is
finished it is not end of relationship among them. Drukair must concern on strong relation
with them. By this only it will develop trust and add value to business. Thus, it helps to
generate more income. Fourthly opening the Drukair in the other foreign countries in
order to carry many passengers and it will help to consume time of passengers.

3) What recommendations do I have for Chief Executive Officer?

I recommend the Chief Executive Officer to explore more on marketing activities. The
following activities that I can suggest are gifts for the tourists where Drukair can provide
satisfaction and brings increase in number of tourists. Second one is by providing unique
technology such as air condition, television and standard of seats. Third one is bringing
up the live shows so that there will be entertainment and hilarious events mainly to save
their boredom. I must encourage the Chief Executive Officer to develop tourism
infrastructure. That is by providing transportation facilities, healthcare facilities and
recreational facilities. Thus, an above all facility helps to create impression tourists. The
most importantly is he must develop interlining system for ticket in our country because
it benefits passengers to change the one flight to another flight. In case, if there is no
interlining system it will be difficult for passengers to collection two tickets carrying bags
and have to wait for check in. Moreover, the Chief Executive Officer suggestions of
 Drukair

domestic air services which will help to bring growth of tourists in our country by
connecting more routes.
Drukair