HIF Aviation Investment Company Pvt Ltd and Yeti World Investment Pvt Ltd from Nepal and Tibet Airlines Ltd from the People’s Republic of China are preparing to start a Nepal-based international air service.
Himalaya Airlines Pvt Ltd, formerly known as Yeti Air International Pvt Ltd, will be the licensed international carrier formed under a Joint Venture Agreement between the three companies.
The Nepal-China joint venture aims to provide convenient international travel to Nepali travelers and foreign tourists, and help boost Nepal's economy, Himalayan Airlines said in a statement.
HIF Aviation Pvt Ltd, promoted by local entrepreneurs from the financing, tourism and hydro-power sectors, is led by its chairman Prithivi Bahadur Pande.
According to Himalaya Airlines, an experienced team comprising foreign and Nepali experts will manage the company.
The Airline will operate in the Asian route with a fleet of at least three Airbus 320 series aircraft in the initial phase, gradually increasing to a minimum of five aircraft in the second year, it says.
Tibet Airlines will put up 49 percent of the total investment in Himalayan Airline while HIF Aviation Investment and Yeti World Investment will provide the remaining 51 percent.
Himalaya Airlines currently has a permit to fly to 14 international destinations around the world.
Total investment is slated to reach $1 billion-1.5 billion at the end of the fifth year, according to the airline.
This is the largest FDI in Nepali aviation sector, so far.