Nepalese international market could see growth as BB expands and Nepal Airlines renews fleet

Nepalese start-up BB Airways aims to pursue significant expansion of its international network following a restructuring which will see the carrier replace a wet-leased Boeing 757 with two dry-leased Airbus A320s. The carrier, which launched services in Sep-2012, has had a relatively slow initial seven months but has an ambitious plan to exploit the expected rapid growth of the Nepalese international market with a focus on migrant worker traffic.

Nepal is a small but underserved market with huge potential. Foreign carriers dominate the market, exploiting the weakness of flag carrier Nepal Airlines, which recently committed to renewing its small fleet in 2015 but is unlikely to grow significantly. If it succeeds at rapidly expanding and overcoming initial challenges, BB could soon become Nepal's largest carrier.