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By Kinzang Lhamo
In a major development for Bhutanโs aviation sector, Drukair โ Royal Bhutan Airlines has officially signed a Letter of Intent (LOI) with SMBC Aviation Capital for the lease of a brand-new Airbus A320neo aircraft. The signing ceremony was held in Bangkok on May 10, 2025, and attended by the Chairman of Druk Holding and Investments (DHI) and Drukairโs Chief Executive Officer, highlighting the strategic importance of the agreement.
This move marks a critical step in Drukairโs long-term vision to enhance operational efficiency, expand regional and international connectivity, and align with global sustainability standards in aviation. The selection of SMBC Aviation Capital followed a detailed evaluation process, with the global lessor chosen for offering the most competitive and reliable lease terms. The deal reflects Drukairโs commitment to securing aircraft solutions that meet its goals for timely delivery, fuel efficiency, and an improved passenger experience.
The Airbus A320neo is known for its advanced fuel-efficient engines, quieter operations, and reduced carbon emissions. Its addition to Drukairโs fleet represents not only a significant technological upgrade but also reinforces the airlineโs focus on environmental responsibility amid growing global pressure for greener air transport. The aircraft promises enhanced range and comfort, making it suitable for both existing and prospective routes connecting Bhutan to key destinations across Asia and beyond.
Beyond operational upgrades, the lease agreement supports Bhutanโs broader goal of modernizing national infrastructure, improving tourism logistics, and stimulating economic growth through more reliable and efficient air services. With the integration of the A320neo, Drukair aims to strengthen its role in the competitive South Asian aviation market while maintaining its commitment to safety, sustainability, and service excellence.
A Drukair official said, “The Airbus A320neo brings significant operational advantages compared to our older fleet. With its new-generation engines and enhanced aerodynamics, we anticipate up to 20% improvement in fuel efficiency. This not only helps reduce our operating costs but also allows for extended range and lowers carbon emissions all in alignment with our commitment to sustainable aviation. Given Bhutanโs challenging high-altitude terrain, the A320neoโs performance capabilities make it particularly well-suited to our geographic environment. Leasing this aircraft is part of Drukairโs broader strategy to strengthen Bhutanโs air connectivity with major regional hubs, while also exploring new international routes.”
The improved fuel efficiency and range of the A320neo are expected to enable Drukair to operate longer routes more reliably and cost-effectively. This aligns with Bhutanโs national objectives of enhancing accessibility, promoting sustainable tourism, and positioning Paro International Airport as a key Himalayan gateway. For passengers, the aircraft offers a modern travel experience with quieter cabins, improved air quality, larger overhead bins, and upgraded inflight services designed for greater comfort.
“We have configured the new A320neo to prioritize passenger comfort while maintaining operational consistency. Our current fleet already consists of Airbus A320 family aircraft powered by CFM engines, and this new aircraft uses the same engine type. That continuity ensures our flight crew, cabin crew, and engineering teams are already well-versed with the aircraft platform. While this addition wonโt require fundamental changes to operations or maintenance, we will still conduct focused refresher and familiarization training to ensure smooth induction. Safety, reliability, and operational excellence remain the cornerstones of our service commitment,” the official added.
The planned induction of the Airbus A320neo is expected to deliver long-term value to passengers, stakeholders, and the Bhutanese economy, as Drukair continues its transition into a more efficient and future-ready national airline.