IFC, a member of the World Bank Group, is providing a $6.9 million loan to Buddha Air in order to help the airline offer improved air travel connectivity in Nepal. IFC's loan will enable Buddha Air to purchase a second ATR-72 aircraft, strengthening the company's operations in the country.

"IFC's second investment in Buddha Air will help us consolidate our services in the region," said Birendra Bahadur Basnet, Managing Director of Buddha Air. Improved air services refer to more options for tourists, and better connectivity for Nepal's population, added Basnet. According to him, improving air travel is essential for better domestic and international connectivity in Nepal because of the country's mountainous terrain.

"Addressing the huge demand for infrastructure in Nepal is a strategic priority for IFC," said Anita George, IFC's Asia Director for Infrastructure and Natural Resources. "Our repeated investment in Buddha Air will help the company offer more travel options and reduce travel duration for Nepali citizens."


Buddha Air received a loan of $10 million from IFC in 2008 to purchase two ATR-42 aircrafts and construct a closed-door hangar at the Tribhuvan International Airport (TIA). The airline serves 10 domestic destinations. Incorporated in Nepal in 1996, Buddha Air operates domestic passenger flights between Kathmandu and other regional airports of Nepal. It also runs sightseeing flights to Mount Everest, offering an onboard view of the world's highest peak.