Nepal Airline case study about financial status

Airlines

1. Case study on culture of nepal airlines Januka Nepal Kebal Ku.Bhandari Dr. Mahesh Bokati Kunal Gurung Lanam Lama

2. PRESENTATION TITLE Organization “Organization is the process so combining the work which individuals or groups have to perform with the facilities necessary for its execution, that the duties so performed provide the best channels for the efficient, systematic, positive and coordinated application of the available effort”. Organization helps in efficient utilization of resources by dividing the duties of various persons. Oliver Sheldon 2

3. PRESENTATION TITLE Organizational cuture Organizational culture is generally understood as all of a company’s beliefs, values and attitudes, and how these influence the behaviour of its employees. Culture affects how people experience an organization—that is, what it’s like for a customer to buy from a company or a supplier to work with it.

4. PRESENTATION TITLE You can have all the right strategies in the world; if you don't have the right culture, you're dead. Patrick Whitesell 4

5. HISTORY OF NEPAL AIRLINES SINCE 1958

6. PRESENTATION TITLE A warm experience & motherly treatment... NEPAL AIRLINES 6

7. PRESENTATION TITLE Introduction Nepal Airlines Corporation is was incorporated on 1 July 1958 through the enactment of the Nepal Airlines Corporation Act. 2019 . Initially, it was known as Royal Nepal Airlines corporation (RNAC). The name Nepal Airlines Corporation was given later .​ Its main objective to provide air transport service to any person, agency, or organization who needs such service for the transportation of men or materials from one airport to another , either within or outside the country. Its parent corporation is the Government of Nepal, and it has a total of 36 destinations worldwide. 7

8. Culture of Dimension of Nepal Airlines 8 PRESENTATION TITLE INNOVATIVE CULTURE Nepal Airlines Corporation is known for its conservative and traditional approach, which may indicate a lower level of innovativeness in its organizational culture.  it is important to assess whether the company promotes and supports innovation, encourages employees to think creatively, and embraces new approaches and technologies to improve its operations and services. AGGRESSIVE CULTURE This dimension reflects the level of competitiveness and assertiveness within Nepal Airlines Corporation. It represents the company drive to outperform competitors achieve ambitious goals, and take proactive measures to seize market opportunities. OUTCOME ORIENTATION CULTURE This dimension focuses on the extent to which Nepal Airlines Corporation prioritizes and values results and outcomes.  It measures the company emphasis on achieving measurable goals and objectives, as well as its focus on tangible outcomes rather than just processes or activities. In the case of Nepal Airlines Corporation, it is important to evaluate whether the company has a strong outcome-oriented culture that emphasizes achieving results and delivering value to customers and stakeholders

9. Culture of Dimension of Nepal Airlines 9 PRESENTATION TITLE STABLE CULTURE This dimension assesses the extent to which Nepal Airlines Corporation values stability, predictability, and consistency in its operations. It reflects the company preference for established procedures and processes, as well as its resistance to change and risk. PEOPLE ORIENTATION CULTURE This dimension evaluates the extent to which Nepal Airlines Corporation values and prioritizes its employees. It measures the company ocus on employee well-being, satisfaction, and development. TEAM-ORIENTED CULTURE This dimension assesses the extent to which Nepal Airlines Corporation values teamwork, collaboration, and cooperation among its employees. It measures the companys emphasis on building strong teams, promoting effective communication and coordination, and fostering a culture of shared goals and mutual support.

10. 10 PRESENTATION TITLE Culture of Dimension of Nepal Airlines DETAIL-ORIENTED This dimension assesses the attention given to accuracy, precision, and thoroughness in Nepal Airlines Corporation organizational culture. It measures the companys emphasis on paying close attention to details, maintaining high quality standards, and ensuring that tasks and processes are executed meticulously.

11. LEVELS OF ORGANIZATIONAL CULTURE 11 PRESENTATION TITLE VISIBLE ARTIFACTS At the visible artifacts level, Nepal Airlines' organizational culture can be seen in its physical environment, such as office layout and design, the dress code of employees, and the company's logo and branding. Nepal Airlines' organizational culture is reflected in its communication and interaction style, including the use of formal or informal language, the level of hierarchy in decision- making, and the level of transparency and openness in communication ESPOUSED VALUES Nepal Airlines Corporation, our espoused values are professionalism, transparency, accountability, excellence, integrity, and being effective and efficient. These values guide our actions and decisions, ensuring that we provide the highest quality service to our customers. UNDERLYING ASSUMPTIONS: underlying assumptions guide how employees perceive and interact with each other, as well as the overall goals and strategies of the organization. These assumptions are deeply ingrained and often operate on a subconscious level.

12. MARKET POTENTIALITY

13. - Nepal is globally known for its natural beauty, friendly people, peaceful nation, holy place for Buddhist and Hindu pilgrims, the destination for adventure tourism, the country with the world's highest peak Mount Everest, and so on. - Nepal Airlines, also known as Nepal Airlines Corporation (NAC), operates as the flag carrier airline of Nepal. It holds a significant position in Nepal's aviation industry and plays a crucial role in connecting the country domestically and internationally. DOMESTIC MARKET Kathmandu to Biratnagar Kathmandu to Bhairahawa Kathmandu to Bharatpur Kathmandu to Dhangadhi Kathmandu to Janakpur Kathmandu to Nepalgunj Kathmandu to Pokhara Kathmandu to Simara Kathmandu to Surkhet Kathmandu to Tumlingta 13 PRESENTATION TITLE Here's an overview of Nepal Airlines' market Nepal Airlines operates flights to various domestic destinations within Nepal serving as a vital link for people traveling between different regions of the country, especially in areas with limited road access and also assists cargo transportation, facilitating tourism, business, and local commerce.

14.                         INTERNATIONAL MARKET    14 PRESENTATION TITLE Nepal Airlines also operates international flights to destinations in Asia and the Middle East. These routes cater to both tourists visiting Nepal and Nepalese expatriates living abroad Kathmandu to Delhi, India Kathmandu to Mumbai, India Kathmandu to Bangalore, India Kathmandu to Kuala Lumpur, Malaysia Kathmandu to Bangkok, Thailand Kathmandu to Doha, Qatar Kathmandu to Dubai, United Arab Emirates Kathmandu to Hong Kong Kathmandu to Seoul, South Korea Kathmandu to Osaka, Japan Kathmandu to Riyadh, Saudi Arabia Kathmandu to Shanghai, China

15. TOURISM 15 PRESENTATION TITLE Nepal Airlines plays a significant role in promoting tourism in Nepal. It provides access to popular tourist destinations such as Kathmandu, Pokhara, and Lukla, facilitating the arrival of tourists from around the world. Additionally, the airline offers mountain flights, allowing tourists to experience breathtaking views of the Himalayas, including Mount Everest. COMPETITION Nepal Airlines faces competition from both domestic and international airlines operating in Nepal. Domestic competitors include private airlines such as Yeti Airlines, Buddha Air, and Shree Airlines, which also offer domestic flights. In the international market, Nepal Airlines competes with various airlines serving similar routes. CHALLENGES Nepal Airlines faces challenges such as fluctuating fuel prices, regulatory constraints, infrastructure limitations, and competition from both domestic and international carriers. Additionally, the airline has undergone periods of financial difficulties and operational challenges, requiring restructuring and modernization efforts to remain competitive. EXPANSION AND MODERNIZATION Nepal Airlines has been focusing on fleet expansion and modernization to enhance its competitiveness and service quality. This includes acquiring new aircraft and upgrading its existing fleet to improve efficiency, reliability, and passenger comfort. Nepal Airlines occupies a crucial position in Nepal's aviation industry,serving as a key link for domestic and international travel and contributing to the country's tourism and economic development.

16. SWOT ANALYSIS ON NEPAL AIRLINE

17. Internal External Positive Negative Strength National flag carrier of Nepal  Government-owned Airlines.  The long history of the establishment. Experienced management and workforce.   Good market network.  Special Prorate Agreement (SPA) with Airlines of strong network base etc. Opportunity Huge potential in the international market Can be a boom to the tourism sector and also to the economy of the country Increase the market share   Connection and link up between other aviation industries   Still, penetrate the domestic market Weakness Impotent leadership.  Lack of transparency.  Negative political influence.  Lack of proper investment .   Lack of technical leaders and suppression of good voices within the corporation.  Lack of feeling of ownership among the leaders and government itself . Lack of vision and proper understanding among the leadership group. Threat Geographical condition of the country - one of the biggest threat Poor Safety conditions Increase of other private companies like Buddha Airlines, Yeti Airlines and so on Increase in the number of flights by international airlines and service providers  Insufficient technical including the pilot, and crew members What Are The Four Parts Of A Swot Analysis

18. IMPACT OF CULTURE OF ON ORGANIZATION

19. Nepal Airlines plays a crucial role in connecting various regions within Nepal especially remote and mountainous areas with limited road access. it facilitates the movement of people, goods, and services, contributing to regional development and accessibility. TOURISM PROMOTION The airline promotes tourism in Nepal by providing access to popular tourist destinations such as Kathmandu, Pokhara, and Lukla. Its mountain flights offer tourists a unique opportunity to experience panoramic views of the Himalayas, EMPLOYMENT OPPORTUNITIES: Nepal Airlines creates direct and indirect employment opportunities for a significant number of people. the airlines operations support jobs in related industries such as tourism, hospitality, and transportation. Nepal Airlines facilitates the transportation of cargo, including perishable goods, medical supplies, and commercial products. ARGO TRANSPORT Nepal Airlines symbolizes national pride and sovereignty. Its presence reinforces Nepal’s identity on the global stage and showcases the country capabilities in aviation. NATIONAL PRIDE Nepal Airlines plays a vital role in emergency response and humanitarian relief efforts during natural disasters, such as earthquakes and floods. EMERGENCY AND HUMANITARIAN RELIEF: POSITIVE IMPACTS CONNECTIVITY

20. Nepal Airlines has faced safety issues in the past, including accidents and incidents. Safety concerns, whether real or perceived, can undermine public trust in the airline and deter passengers from flying with them, affecting their reputation and revenue. OPERATIONAL CHALLENGES: The airline has grappled with operational challenges, including delays, cancellations, and service disruptions. These issues can inconvenience passengers, disrupt travel plans, and lead to dissatisfaction among customers. FINANCIAL STRAIN: Nepal Airlines has experienced financial difficulties and losses, leading to financial instability and dependency on government subsidies. Financial strain can limit the airlines ability to invest in modernization, fleet expansion, and service improvements, hindering its competitiveness and long-term sustainability. Nepal Airlines route network is relatively limited compared to other airlines. This limitation may restrict travellers options and convenience, particularly for passengers seeking direct flights to specific destinations. LIMITED ROUTE NETWORK Private carriers often offer more modern aircraft, better services, and competitive fares, posing a challenge to Nepal Airlines market share and profitability. COMPETITION Nepals aviation infrastructure, including airports and air traffic control systems, faces limitations and capacity constraints. Inadequate infrastructure can lead to operational inefficiencies, congestion, and delays, affecting Nepal Airlines punctuality and service quality. INFRASTRUCTURE CONSTRAINTS: NEGATIVE IMPACT SAFETY CONCERNS:

21. Nepal Airlines contributes to carbon emissions and environmental pollution through its operations. While efforts may be made to minimise environmental impact, air travel inherently generates greenhouse gases and contributes to climate change. DEPENDENCY ON TOURISM: Nepal Airlines business is heavily dependent on tourism, which is susceptible to external factors such as economic downturns, natural disasters, political instability, and global health crises. Fluctuations in tourist arrivals can significantly impact the airlines revenue and profitability. LIMITED CONNECTIVITY TO REMOTE AREAS Nepal Airlines helps connect remote and mountainous regions through air transportation, access to some areas may still be limited due to factors such as challenging terrain, weather conditions, and runway infrastructure constraints. ENVIRONMENTAL IMPACT:

22. Nepal Airlines has a positive impact on countries economy, society, and international standing by enhancing connectivity, promoting tourism, creating employment, supporting trade, fostering national pride, and contributing to humanitarian efforts while Nepal Airlines plays a vital role in Nepals aviation sector and economy, it faces various challenges and may have negative impacts related to safety, operations, finances, competition, infrastructure, environment, and dependency on tourism. Addressing these challenges is essential for the airline to enhance its performance, competitiveness, and sustainability in the long run.