Royal Bhutan Helicopter Services suffers huge losses amid pandemic

RBHSL generated revenue of $900000 during the 2020 fiscal year while its operational cost in the same year was around $1.7 million, resulting in a net operational loss of $836,000. The firm has a total of 39 employees including its CEO.

The company was established in 2015. And, it was the first time we suffered losses, Chhewang Gyeltshen, the CEO of the company, was quoted as saying by Kuensel newspaper. “We did not lay off any staff despite the hurdles. We instead took other measures to limit expenses that were not required,” he said.

In helicopter services, Gyeltshen said the fixed cost is higher than other services. “We’re sustaining on revenues from medical evacuation flights and hiring charges from the highlanders. It’s becoming challenging to meet the operation cost,” he said.

Tourist services and chartered flights remain suspended since March last year. Tourist charter flights, where tourists pay an hourly fee of USD 4,375 per hour, used to generate 60 percent of its total revenue.

To boost the demand locally, the firm had recently reduced its charges, and introduced a five-minute sightseeing tour of Paro, the landing point in Bhutan southwest of capital Thimphu. “This is quite popular with the locals and a steady source of revenue when business is down,” Chhewang Gyeltshen said. They charge around $20 for the five-minute sightseeing tour.