🇧🇩 Aviation Industry in Bangladesh

[Saif]

The Aviation Industry in Bangladesh​

WAHID MURAD​

Deputy Manager Planning, Route & Statistics at Biman Bangladesh Airlines​

Published Feb 13, 2023

The social and economic progress of a nation depends on its transportation and communication networks. Through these links, business is encouraged and the flow of goods and services is streamlined. Additionally, it increases economic growth by luring investors and generating new employment opportunities, and it improves the availability of educational and medical resources. In a nutshell, a well-developed network of roads and radio waves is a necessary condition for economic and social development.

Biman Bangladesh Airlines is the country's official flag airline and serves a number of domestic and international destinations. There are also a few private airlines operating in the nation, such as Novoair, US-Bangla Airlines, and Air Astra. Hazrat Shahjalal International Airport in Dhaka is Bangladesh's primary airport.

Investments in aviation industry upgrades aim to improve the country's connectivity and stimulate economic development. To that end, Bangladesh's aviation sector is experiencing rapid expansion. With a compound annual growth rate (CAGR) of 8.5% from 2019 to 2024, this market is expected to reach $7.27 billion in size. As published by the Bangladesh Bureau of Statistics (BBS), the transport and communication sector contributed 7.44% at constant prices to Bangladesh's GDP in FY 2020-21, and 7.33% in FY 2021-22, both using FY 2015-16 as the base year. In FY2020-21, the industry grew at a rate of 4.04%, and in FY2021-22, that rate jumped to 5.70%. According to these numbers, the transportation and communication sector is a major driver of economic growth in Bangladesh.

The Bangladeshi government has tasked the Civil Aviation Authority of Bangladesh (CAAB) with overseeing and enhancing the country's aviation infrastructure for use by both domestic and foreign airlines. Aerodrome construction, maintenance, and operation; air traffic control; air navigation; aviation-related ground services; and telecommunications services and facilities are just some of the many things it offers. The Civil Aviation Authority of Bangladesh (CAAB) was established to promote the development of the aviation industry in Bangladesh and to guarantee the security of air travel inside the country.

When compared to India's 34, Bhutan's 2, Nepal's 3, and the Maldives' 5, Bangladesh's international airport options are severely limited. However, enhancements are being made to make room for more advanced planes like Boeing and Airbus. Because of its well-developed aviation infrastructure, Bangladesh is becoming a popular destination for sightseers interested in scenic flights and balloon rides. There will be 3.1 million foreign visitors to the country this year, up from 2.5 million in 2015.

There is no faster-growing industry in Bangladesh than the aviation industry. This sector's growth in recent years has been a boon to the country's GDP. The aviation industry in Bangladesh has undergone significant development in terms of infrastructure and services, resulting in the creation of new jobs and the attraction of new capital investment.

Several local airlines serve the country of Bangladesh, making air travel the most popular option for getting there. The national airline of Bangladesh, Biman Bangladesh Airlines, flies to more than 50 locations around the country and the world. Other notable domestic carriers are NovoAir, US-Bangla Airlines, and Regent Airways. Qatar Airways, Emirates, and other international airlines all offer service to and from Bangladesh.

By creating a safety roadmap, encouraging strategic engagement with international airlines and airports, and introducing incentives for airlines and customers, the government of Bangladesh is actively addressing the issues facing the aviation sector. As a result of these efforts, air travel is now more convenient and secure for both passengers and cargo.

IATA predicts a massive 33% rise in air traffic in the Asia–Pacific region by 2023. According to the IATA, this is consistent with their global growth prediction for that year of 9%. The recovery from the severe effects of the pandemic on air travel in the region is reflected in this growth, which is predicted to be slower than in prior years. The continuous recovery of air travel confidence in China, Japan, and South Korea, as well as the continued growth of domestic markets in select countries like India and Indonesia, are likely to be the key drivers of this rise in air travel in the Asia Pacific area. IATA predicts that domestic travel inside these countries will continue to be the region's most rapid area of expansion. Additionally, IATA has recognized several factors that have contributed to the expansion of air travel in the area. A number of factors, such as rising demand for intraregional business travel, historically low fuel prices, and "open skies" legislation, have contributed to the expansion of the aviation industry. Over the next three years, these variables should encourage more people to take flights around the region. In sum, IATA expects travel in the Asia-Pacific region to rebound strongly from the pandemic's effects by 2023, increasing by 33% from 2019. Specifically, the revival of air travel confidence in key countries like China, Japan, and South Korea, as well as the expansion of domestic markets like India and Indonesia, are the primary forces behind this trend. The expansion of air travel has been aided by a number of factors, including low fuel prices and supportive government regulations.

Forecasts from the IATA indicate a 3.1% increase in the Asia-Pacific region's dominance by the year 2023. The aviation industry in the region stands to gain an additional 1.4 billion passengers and $269.5 billion in revenue as a result of this. The forecast is an updated version of a previous forecast released in 2017 that predicted an additional 1.3 billion passengers and $261 billion in revenue for the region.

It's safe to say that Bangladesh's aviation sector is expanding in the right direction and that this trend will continue in the years ahead. There have been major advancements in the areas of infrastructure and services, as well as the creation of new jobs, the attraction of foreign investment, and the infusion of new sources of money. It is well positioned to take advantage of the aviation industry's prospects and benefits thanks to the government's dedication to bolstering the sector.

 

[Saif]

The rise of commercial airlines in Bangladesh

Although challenged by internal and external factors, the future of commercial airlines in Bangladesh appears promising, with significant growth potential driven by increased passenger demand, expanding fleets, and strategic investments in infrastructure to support the booming aviation industry

www.tbsnews.net

The rise of commercial airlines in Bangladesh​

Although challenged by internal and external factors, the future of commercial airlines in Bangladesh appears promising, with significant growth potential driven by increased passenger demand, expanding fleets, and strategic investments in infrastructure to support the booming aviation industry​

Photo: Collected

Over the past decade, the commercial airline industry in Bangladesh has demonstrated remarkable resilience and growth, with an annual expansion rate exceeding 8%, despite facing challenges such as the cessation of operations by some private carriers.

Key indicators are pointing towards a promising future, including projections that the number of air travellers will double by 2031. In response, airlines in Bangladesh are pursuing fleet expansion and increasing flight frequencies.

However, private airlines are advocating for more business-friendly regulatory frameworks and policies to enable them to compete effectively with foreign carriers in the burgeoning aviation market.

Biman Bangladesh Airlines, the national carrier, is the major player in the Bangladeshi aviation landscape. In just three years, from 2019 to 2021, Biman Bangladesh Airlines doubled its seat capacity to a total of 4,698 seats. Furthermore, the airline plans to add 10 more widebody aircraft from Airbus to its existing fleet of 21.

US-Bangla, the largest private airline, has experienced a remarkable growth of over 800% in seat capacity within seven years, boasting more than 1,200 seats in total according to a 2021 study by The Institute of Chartered Accountants of Bangladesh. Another prominent private airline, NovoAir, has seen a 400% increase in seat capacity within the same seven-year timeframe, thanks to the phased acquisition of seven ATR aircraft.

The aviation industry in Bangladesh has been described as booming. Between 2013 and 2017, air travel saw a 22.1% increase internationally and a significant 64.7% increase domestically, as reported by the Civil Aviation Authority of Bangladesh (CAAB). This growth is attributed to the country's large population of 170 million, its projected economic development by 2026, and the portion of the population with sufficient disposable income to support air travel.

Notably, 80% of passenger and cargo transport is currently dominated by foreign carriers, highlighting the substantial potential for further growth in the Bangladesh air transport industry. Out of the 33 existing airlines, 12 foreign carriers have expressed interest in operating flights to and from Bangladesh, particularly following the partial inauguration of the much-anticipated third terminal at Hazrat Shahjalal International Airport, Dhaka.

Squadron Leader Lutfor Rahman, CEO of US-Bangla Airlines, expresses optimism for the industry's future, emphasising that the positive trend and growth are evident. "Even a few years ago, you would have thought that the airlines in our country might close down. But after all, now we are growing."

He stresses that various aspects, including infrastructure and human resource development, must be improved for sustained growth.

The aviation industry in Bangladesh has reached its golden jubilee since the establishment of Biman Bangladesh in 1972. Many airlines have come and gone during this time, with some suffering financial woes and ultimately closing down.

However, private airlines like US-Bangla and NovoAir have defied the odds and demonstrated substantial growth, directly employing over 10,000 people. In addition to the four commercial airlines, various other entities, including airport authorities, training institutes, cargo services, and helicopter operators, contribute to the industry's overall employment figures, reaching the International Air Transport Association's (IATA) estimated total of 17,000 direct employees.

When discussing the decline in the airline business, Air Vice Marshal M Mafidur Rahman, chairman of CAAB, attributes it to inadequate compliance with licensing requirements, poor management, and a lack of economic viability among operators. However, he acknowledges that efforts are being made to assess the capacity of airlines to ensure their sustainability, with the guidance of international aviation organisations.

The future outlook for the aviation industry in Bangladesh is promising. Data from CAAB indicates that the country's airports handled 9.63 million international passengers in 2022, surpassing the pre-pandemic 2019 figure of 8.59 million. This growth is attributed to a rising number of travellers, including migrant workers, non-resident Bangladeshis, and the expanding middle and upper-class segments of the population.

Projections suggest that air travel to and from Bangladesh will double by 2031, with anticipated annual growth rates of 6% for international travel, 8% for domestic travel, and 6.4% in total. As a result, there is a pressing need for more aircraft to capture the market opportunities, according to Juan Camilo Rodríguez, manager of Wide-body Market Development at Airbus.

Boeing, another aerospace giant, has released optimistic forecasts for future aircraft sales, particularly in Asia, with Bangladesh leading the way. Boeing's Commercial Market Outlook predicts that by 2032, Bangladesh will achieve an annual economic growth rate exceeding 5%, twice the global average, leading to nearly 8.5% annual growth in air traffic.

Mofizur Rahman, the secretary-general of the Aviation Operators Association of Bangladesh, emphasises that while domestic travel may face challenges, international travel is on the rise.

"If you look at the big picture, while domestic travel might slow down a bit, international travel is on the rise, with an expected annual increase of 6% to 7%," he said. "Our strategy revolves around staying attuned to passengers' desires. We are adapting our fleet to align with their evolving needs and our future growth. We remain committed to conducting annual check-ins to ensure that we are meeting the requirements of international travellers," he added.

Despite these challenges, the expansion of the airline industry in Bangladesh is dependent on investments in infrastructure, which is considered a crucial factor in ensuring its long-term success.

Expanding also involves acquiring new planes, which is a clear indication that investing in infrastructure eventually pays off.

 

[Bilal9]

US Bangla gets its first A330...

 

[Bilal9]

Bangladesh First Trainer BBT-2 put together - looks like plywood/fiberglass composite panels, definitely low cost but they probably need to tune/tweak the flight envelope to make it a safer proposition. Don't know if this is their own design, but it has nothing to do with the cover of the video which was drawn up as Pilatus PC aircraft.

 

[Saif]

A video on domestic aviation industry of Bangladesh.

 

[Saif]

Ensuring the long-term sustainability of Bangladesh's aviation industry

Bangladesh's aviation sector possesses a sizable amount of unrealised growth potential. To be viable, it must, however, deal with the problems it is currently having and take advice from other countries' and airlines' experiences

www.tbsnews.net

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Ensuring the long-term sustainability of Bangladesh's aviation industry​

Bangladesh's aviation sector possesses a sizable amount of unrealised growth potential. To be viable, it must, however, deal with the problems it is currently having and take advice from other countries' and airlines' experiences​

Photo: Biman Bangladesh Airlines

Bangladesh's aviation industry is booming. But there are some serious obstacles that could stunt its development.

Bangladesh Airlines must overcome safety concerns, weak infrastructure and restricted connections to remain competitive in the global market. Looking at the best practices other countries have implemented can provide valuable insights into how to deal with these issues.

The aviation market in India is expanding rapidly, making it one of the fastest-growing in the world. India's investment in updating infrastructure is a critical factor in the country's aviation industry's success.

India has significantly invested in increasing airport capacity and constructing new airports to better serve its growing passenger population. Bangladesh could take a page from India's book and upgrade its airport facilities to accommodate the ever-increasing air travel demand.

The United Arab Emirates (UAE) can be another example for Bangladesh. The country has transformed its aviation industry into a major centre for international travel.

The United Arab Emirates (UAE) has invested significantly in cutting-edge aircraft and technology, built state-of-the-art airport infrastructure and worked with airlines to increase the number of routes and quality of service available to the public.

The government of the United Arab Emirates (UAE) has set policies and regulatory frameworks conducive to aviation growth. The country has successfully implemented regulations and structures to foster the development of the aviation industry, and Bangladesh should learn from its experience.

Furthermore, the United States and European countries, among others, have established stringent safety regulations and standards that airlines must adhere to. Passenger confidence in air travel has been boosted by these safety measures, which have contributed to an aviation safety and reliability culture.

Bangladesh may look to the norms and standards of the developed countries for advice in improving aviation safety and increasing passenger trust.

Singapore also exemplifies how the airline sector and government may work together for mutual benefit. To develop the aviation industry in Singapore, the government has invested in aviation infrastructure, implemented beneficial laws and regulatory frameworks, and promoted the country as a hub for international travel.

Bangladesh's airlines and government can collaborate to develop a comparative framework to stimulate growth in the country's aviation sector.

Bangladesh could benefit from Indonesia's aviation industry's success. Indonesia's aviation industry is rapidly increasing, owing to a vast domestic market and many overseas visitors.

Part of Indonesia's success can be attributed to the country's commitment to raising safety standards. Following several high-profile incidents, Indonesia enacted stringent safety regulations and standards, which helped restore passenger confidence.

Indonesia has also invested much in infrastructure to accommodate the growing number of tourists. The country has spent money on new airport construction, expansion and modernisation, which have increased passenger transport.

Lastly, Indonesia has tried to enhance connectivity through partnerships with airlines to increase routes and services. The government's policies and regulatory frameworks have also been put in place to foster the expansion of the aviation sector.

The aviation industry in Bangladesh could benefit from studying Indonesia's efforts in safety, infrastructure, policy and regulation. Bangladesh may improve its aviation sector and become a global participant if it follows the lead of other countries by adopting best practices.

Bangladesh's aviation sector is primed for tremendous growth but must overcome some challenges to remain sustainable in the long run. The country can learn from the tactics used by other countries, such as India, the United Arab Emirates, the United States, European countries and Singapore, to tackle these challenges.

Bangladesh's aviation sector can realise its full potential by investing in airport infrastructure, implementing safety laws and standards, building good policies and regulatory frameworks, and partnering with airlines.

Bangladeshi Airlines can learn from the practices of other airlines worldwide.

Some airlines, for instance, specialise in tailoring their services to specific passenger profiles. In-flight entertainment and internet access are just two examples of how airlines may increase customer satisfaction and loyalty by investing in cutting-edge technologies.

In addition, airlines should prioritise sustainability by purchasing planes with better fuel efficiency and instituting other environmentally responsible practices. This could lower costs while simultaneously improving the aviation industry's environmental effect.

Bangladesh's aviation sector possesses a sizable amount of unrealised growth potential. To be viable, it must, however, deal with the problems it is currently having and take advice from other countries' and airlines' experiences.

Bangladesh's aviation industry can reach its full potential and help its economy grow if the right mix of investments is made in areas like safety, infrastructure, sustainability, policy and regulatory frameworks, and cooperation between airlines and the government.

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Illustration: TBS
Dr Mohammad Shahidul Islam is an Assistant Professor at BRAC Business School, BRAC University

 

[Saif]

To make Bangladesh an aviation hub, we must invest in our airlines

Biman Bangladesh Airlines needs to undergo a major transformation in order to grow and expand significantly.

www.thedailystar.net

To make Bangladesh an aviation hub, we must invest in our airlines​

Bangladesh government wants the country - especially Dhaka - to become an aviation hub in the region and compete with other regional hubs such as Singapore, Bangkok, and Delhi. A few weeks ago, Prime Minister Sheikh Hasina called for a 'roadmap' that would help illustrate how the country's main international gateway Hazrat Shahjalal International Airport (HSIA) can be transformed into a key aviation hub, largely owing to the construction of the ambitious third terminal. However, airports are just one half of the game for a thriving aviation sector. A well-established airline industry is the other half. This is because without airlines and their aircraft, an airport would basically be an empty shell.

This is exactly what we see in the case of other global hubs. Those airports have today established themselves as aviation hubs, thanks to their airlines. Dubai International Airport has Emirates, Doha's Hamad International Airport has Qatar Airways, and similarly Singapore's Changi has Singapore Airlines. All these are some of the best airlines in the world that connects passengers to different parts of the world via their hubs.

Although HSIA would not be as large an aviation hub as Dubai or Doha, it does have the potential to be an important Asian hub. And for that, Biman Bangladesh Airlines has a very important role to play. For many years the national flag carrier had a negative reputation but now, after the addition of newer aircraft from Boeing in its small fleet, Biman is doing better than before. However, it is nowhere near enough. And many Bangladeshis still don't trust Biman and/or are not happy with their service. The airline still has less than 15 turbofan-powered aircraft. For a country of over 165 million people, the 35th largest economy, and over 13 million of its population living around the world, the national airline fleet is rather miniscule.

It has been more than a decade since 10 new aircraft were ordered from Boeing. It seems that Biman's top management either thought that these would be enough, or they perhaps forgot that the airline needs to keep adding new aircraft to significantly grow and expand its operations. Unfortunately, Biman hasn't been able to add much to its international route network since acquiring the new aircraft and many routes that the airline once served in the past remain canceled. Of course, when incompetency and mismanagement are Biman's main game, such sorry state of the national airline is to be expected. Even the more economically poor African nation of Ethiopia has an internationally recognised airline with a young, modern fleet. When will the top brass in Biman learn how to properly run an airline?

Biman has a lot of potential. Many years have been wasted, but it is never too late. The time to turn things around is right now. Biman Bangladesh Airlines needs to undergo a major transformation in order to grow and expand significantly. Word on the street is that Biman has been in talks with Airbus to purchase new aircraft, but the same people are using the excuse of economic slowdown to not order anything yet. Do these people have any idea that it will take years before the first deliveries can be received?

Unlike Biman, aircraft manufacturers wait for no one. The earlier an airline places an order, the earlier they can get delivery.

The national airline requires at least 18 to 24 new aircraft in the short term in order to make significant changes. A suggestion would be to acquire A320/A321neo aircraft for short-haul and regional routes and A350s for medium-long haul routes. These new airplanes would allow Biman to significantly expand its international network, including resuming previous destinations in Europe and Asia; launching a direct flight to New York and Sydney as well as flying to Toronto without any stops. But purchasing new aircraft won't do much if the image and service of the airline remains the same. Nowadays the cabin and passenger experience have become an essential part of the whole flying experience. Airlines around the world introduce new products and passenger amenities when new aircraft orders are received. Therefore, Biman also has to upgrade its business and economy class cabins and introduce a world-class inflight infotainment system.

Soft touches must not be forgotten as well. From updating the website and online booking system to modernising the cabin crew uniforms, Biman certainly has a lot to consider and improve. And while Biman's in-flight catering generally receives good feedback from passengers, it could do more with more menu options and a wide variety of cuisine. Generally speaking, our national airline should not market and cater to Bangladeshis only, but also try to attract passengers (as well as cabin crews, pilots, and staff) from other countries and for that to happen, the carrier's passenger experience and inflight service needs significant improvements.

With the opening of the 3rd terminal, Biman Bangladesh Airlines needs to restructure itself completely and take initiatives to focus on the growth and expansion of the airline in terms of fleet, route network, hard and soft products on board, and world class training of its staff and crew members. Then it would certainly pave the way towards a growing aviation hub in Bangladesh.

Manazir Islam is an urban planner, traveller and photographer.

 

[Saif]

Biman’s 50-year journey: Bumpy all along

Despite a robust fleet of 21 modern aircraft, Biman remains a losing concern due to a lack of planning and poor service delivery, said aviation experts.

www.thedailystar.net

Biman’s 50-year journey: Bumpy all along​

Despite a robust fleet of 21 modern aircraft, Biman remains a losing concern due to a lack of planning and poor service delivery, said aviation experts.

The absence of planning ahead left many of its new aircraft underutilised and substandard services shrank its market shares over the years, they said.

Since its inception in 1972, the national flag carrier lost money in most of the fiscal years.

Biman made Tk 133 crore profit in 2020-21 (as of Dec 2020) and reported a loss of Tk 81.13 crore in 2019-20 fiscal year, according to Bangladesh Economic Review.

It owes over Tk 1,000 crore to different organisations and pays annual instalments of around Tk 250 crore for the new planes, according to aviation experts.

"Biman's profit actually cannot be called profit as the airline owes several hundred crores to Civil Aviation Authority of Bangladesh and Bangladesh Petroleum Corporation," Kazi Wahidul Alam, an aviation expert, told The Daily Star.

He also said Biman was not transparent with its financial statement.

It currently flies to 19 international destinations, most of which are short- or medium-haul. It had flights to 29 international destinations -- from New York in the west to Tokyo in the east and major European cities -- with fewer planes in its fleet, according to Biman insiders.

Since 2006, Biman gradually stopped serving around 10 destinations, including New York, Frankfurt, Rome, Tokyo, Brussels, Amsterdam and Libya, largely due to financial problems, shortage of modern planes, and routes becoming not viable.

After becoming a public limited company in 2007, Biman, to bolster its fleet, has been on a shopping spree since 2008 and spent around Tk 19,020 crore on new planes.

Despite having air service agreements with 42 countries, Biman failed to fly to new destinations or serve those it stopped serving, said Wahidul.
Even though it has a huge captive market and loyal passengers, Biman's market share has reduced 20 percent in recent years due to poor service, mismanagement, improper planning and marketing policy, and absence of professionals, he said.

He said over the 50 years, Biman could not directly recruit 50 professionals due to government interference. "Lack of experts and professionals left Biman in a nosedive and its world is gradually shrinking," he added.

A senior pilot, also a leader of Bangladesh Airlines' Pilot Association (Bapa), said it was unfortunate that Biman could not make a proper fleet plan to optimally use its modern aircraft.

For example, he said, "Biman is using Boeing 787-8s, a remarkable long-haul aircraft, on short-haul routes, including Dhaka-Singapore and Dhaka-Malaysia, which is nothing but bad planning."

He said the Boeing 787-8s can fly 14 to 15 hours at a stretch and is best suited for distant cities like New York, Toronto, or Tokyo.

Talking to The Daily Star, chairman, Biman Board of Directors, Sajjadul Hassan admitted that Biman could not achieve its target in the last 50 years.
"Passenger service quality did not reach the desired level due to various reasons," he added.

Speaking at a programme at the Biman's headquarters in Kurmitola in late November, he even said Biman's quality of service remains the same as before.

Former MD and CEO of Biman, MA Momen said there was no reason for Biman's inability to serve properly and survive in the market.

Biman MD and CEO Abu Saleh Mostafa Kamal said manpower shortage was the reason for Biman not flying to new destinations and serving passengers properly. He mentioned a shortage of pilots and cabin crew members.

Acknowledging passengers' allegations on the poor quality of service, he said, "Despite our limitations, we are sincerely trying to serve our valued passengers properly … ."

Biman started its commercial operations on February 4, 1972, with a single DC-3 aircraft.

It now has 21 aircraft -- four Boeing 777-300 ERs, four Boeing 787-8s, two Boeing 787-9s, six Boeing 737-800, and five De Havilland Canada DHC-8 Q400.

 

[Saif]

Overview of the Domestic Aviation Industry in Bangladesh - Business Inspection BD

On January 1st, 1972 independent Bangladesh’s civil aviation journey began with Captain A. Rahim’s Cessna 150 aircraft. Since then, at least 32 airlines have registered in Bangladesh, many of which have come into operation and many have never operated flights, and a few are planning to launch...

businessinspection.com.bd

Overview of the Domestic Aviation Industry in Bangladesh​

Syed Abid Ahsan
December 28, 2021

On January 1st, 1972 independent Bangladesh’s civil aviation journey began with Captain A. Rahim’s Cessna 150 aircraft. Since then, at least 32 airlines have registered in Bangladesh, many of which have come into operation and many have never operated flights, and a few are planning to launch flights very soon. Of these, at least 10 passenger airlines have been permanently shut down since the start of operations. Among the airlines currently in operation, there are a total of 45 aircrafts in the country including 21 aircrafts of Bangladesh Biman, 17 of US Bangla, 7 of NovoAir. Air travel has helped in the economic development of the country by making the transport sector more efficient.

Overview of Domestic Aviation Industry​

Established in February 1972, the state-owned Biman Bangladesh Airlines is the first airline company in Bangladesh. The first aircrafts in the aircraft fleet were a Vintage Douglas Dakota and Douglas DC-3. Domestic operations began with the purchase of four Fokker F27 aircraft, which were used to transport passengers from Dhaka to Chittagong and Sylhet. Until 1993, Bangladesh Biman had a monopoly in the aviation industry. Over the decades, the airline gradually expanded its fleet and routes.

There are a total of 8 airports in Bangladesh, of which 3 are international and 5 are domestic. International airports include Hazrat Shahjalal International Airport-Dhaka, Shah Amanat International Airport-Chittagong and Osmani International Airport-Sylhet. On the other hand, domestic airports are located at Cox’s Bazar, Rajshahi, Jessore, Syedpur and Barisal.

There are 3 international and 5 domestic airports in Bangladesh

After the Air Parabat in 1993, several other private airlines including GMG in 1996, United in 2005, A Royal Bengal in 2006, Regent in 2010, NovoAir in 2012 and US-Bangla in 2013 started their operations. Amongst the private airlines, only NovoAir and US-Bangla are currently operational. Regent has stopped their operations since the beginning of covid. In other words, at present there are 4 scheduled airlines in this industry including Biman Bangladesh, out of which 3 are operational. Many airlines have stopped operating in Bangladesh due to lack of proper business policy, improper marketing strategy, low brand image, air agreement rule violations, and financial crisis. Among the 3 private airlines, US-Bangla alone has acquired about 50% of the total market.

US-Bangla is the largest private airline in Bangladesh based on fleet size with 16 aircraft in its fleet and NovoAir is in the second position with 7 aircraft. Currently US-Bangla and NovoAir are providing domestic flight services to 8 destinations within the country which are: Dhaka, Chittagong, Jessore, Cox’s Bazar, Syedpur, Sylhet, Rajshahi and Barisal. In addition, a new airline has joined the domestic aviation industry, Air Astra which will launch commercial services in the first quarter of 2022.

US-Bangla and NovoAir offer domestic flights to 8 different destinations across the country

In addition to scheduled airlines, there are two other categories in the domestic aviation industry – charter airlines and cargo airlines. Air chartering is the process of renting the entire aircraft in a non-scheduled manner . Charter Airlines currently has 10 operators, of which R&R Aviation, South Asian Airlines, BRB Air Limited, Square Air Limited and Bashundhara Airways are the most popular. Some airlines also provide air ambulance services.
Cargo airlines, on the other hand, are primarily involved in cargo transport. Such airlines act as sub-contractors to the major passenger transport airlines. At present there are 4 cargo service provider airlines in the country which provide services at domestic and international level. These are Bismillah Airlines, Hello Airlines, Easy Fly Express, and Skyair.

Air passenger growth rate has overtaken the GDP growth rate of the country.

According to the World Bank, along with the growth of GDP the number of airline users has also increased. The Rapid Growth of Business Environment, Improved Purchasing Power, and The Need to Saving Time can be mentioned as important factors for the growth of this industry.

In 2018, the sector provided 129,000 jobs and contributed 449 million to GDP, accounting for about 0.18% of the country’s total GDP (from domestic aviation alone). Industry experts have always been optimistic about this market. According to The Financial Express, Bangladesh’s aviation industry market has doubled between 2010 to 2017. Keeping in mind the trend of 2018, Bangladesh Aviation Industry was expected to grow by 168% in the next 20 years, which was forecast to create new job opportunities in the country and contribute more to GDP. In a recent interview with The Business Standard, the Minister of State for Civil Aviation and Tourism, Md. Mahbub Ali, hoped that the Bangladesh aviation industry could grow almost threefold in the next 15 years.

Despite having good potential, the downtrend of the aviation industry started from the very beginning of the coronavirus pandemic. Right after the outbreak of the virus, the passenger count on the domestic route dropped by 25 to 30%. However, after the lifting of the lockdown and with the resumption of aviation, the country’s tourism as well as the aviation industry began to turn around a bit. The Civil Aviation Authority of Bangladesh (CAAB) reports that between October ’20 and November ’20, domestic aviation grew by 75% to 80% compared to the pandemic situation. While the number of air travel passengers was 2.21 lakh in December 2020, it increased to 2.34 lakh in February 2021 (an increase of 5.88%) in the next two months. According to the Daily Star, the number of passengers almost tripled in the first three months of October 2021. However, despite recovering, the country’s aviation industry has suffered huge losses in the Corona epidemic. From the inception of Pandemic till October 2021, Biman Bangladesh Airlines lost Tk 1,300 crore, US-Bangla Airlines lost Tk 800 crore and NovoAir lost Tk 150 crore.

Biman, US-Bangla, and NovoAir lost 1300, 800, and 150 crore BDT respectively

Current Trends & Opportunities​

Changes have also taken place in the domestic aviation of Bangladesh keeping pace with the economic trends. Some practices have gained quite a bit of popularity in recent years.

Increasing Demand of Air Travel​

Air travel is faster and more comfortable than other modes of transport. Due to the lack of proper maintenance on the highways of Bangladesh, the condition of many parts is bad, due to which the average speed of the roads decreases. As a result, air travel is more convenient for many. For example, the journey from Sylhet to Cox’s Bazar – 528 km by bus or car takes about 12 hours. However, the same route can be reached in just one and a half hours by air travel. It costs 3200 taka which is more than a bus or car. But many passengers nowadays prefer air travel in many cases considering associated Time, Cost and Inconvenience.

Especially businessmen who travel by air are able to return to Dhaka on the same day after finishing work in any other districts. Also Bangladesh’s per capita GDP rose from 418 in 2000 to 1968 in 2020. In other words, per capita income has increased more than four and a half (~ 4.71) times. For this reason, many people are now able to afford air travel. As a result, the growth rate of the aviation industry in Bangladesh from 2015 to 2019 alone was about 65-percent (64.7%). Moreover, the use of air ambulances for emergency transport of patients during recent times can be noticed in Bangladesh. The trend of chartered jet use has also started among many.

More Frequent Flights​

To meet this growing demand for air travel frequent flight scheduling is another significant trend in the aviation industry .There was a time when there were only a handful of flights a week from Dhaka to big destinations like Chittagong or Sylhet. But now with the increase in demand, there are multiple flights from Dhaka to different destinations of the country in different schedules of the day. As a result, a passenger can book a flight according to his convenience. At the same time, the airlines have started offering business classes on different routes as per the demand of the customers.

More International Airport​

Biman Bangladesh has recently launched direct flights on various domestic routes. Earlier, Dhaka was used as a hub for every domestic flight. For example, it is now possible to go directly from Sylhet to Chittagong. On the other hand, the Bangladesh government has undertaken a project to internationalize Cox’s Bazar and Syedpur airports. These airports will become regional hubs once these projects are completed. As a result, other commercial airlines can operate direct flights on these routes as well as increase the volume of international flights. But over the years, airlines as well as private companies have started international flights. US-Bangla started international operations on July 17, 2014 and is currently operating on 11 international routes. NovoAir also started international operations on December 1 of the following year and now operates flights on 1 international route.

Average Fleet Age​

Once operating flights with old or outdated aircraft, but in the last few years Biman Bangladesh has acquired new model brand new aircraft. 2 Boeing 787-8 Dreamliners and 2 Boeing 787-9 Dreamliners were added to the fleet in 2019 and 2 De Havilland Canada DHC-8-400 aircraft in 2020. Due to which the average age of ‘Biman-Bangladesh’ aircraft is currently 8.3 years. These new aircraft are attracting more passengers as well as reducing operating and maintenance costs by increasing fuel efficiency. In addition to the aircraft, US Bangla plans to add three new Boeing 737-800S and four ATR-72-600s aircraft to its fleet, according to the Dhaka Tribune.

Two new aircrafts were acquired by Biman Bangladesh in 2019 – the Boeing 787-8 and 787-9 Dreamliners

Challenges​

In terms of size Bangladesh is a very small country. If two airports are located close to each other, it is not sustainable for the airlines to operate flights between those two airports. Also, when traveling short distances, it is more convenient to travel by road if considering the time spent at the airports and check-ins and check-outs. As a result, there is not much opportunity to add new air travel destinations within the country. Moreover, due to several ongoing mega projects, travel by road and rail will become much easier in future. As a result, it will be difficult for airlines to compete with other transports and sustain.

Many people in Bangladesh still do not consider air travel as a good option for transportation but as a luxury. As a result, customers do not consider air travel as a substitute for road and rail. This is a significant challenge in the path of growth of the aviation industry.

High Availability of Cars, Buses, Trains and Launches for Domestic Travel is a Threat for the Domestic Air Travel. On the other hand, low or no switching cost and multiple flights on the same route have made the industry quite price sensitive. As a result, pricing is very competitive among the companies operating in this industry.

Recently, almost all the airlines of Bangladesh Aviation Industry have come up with some mechanical problems. Among these are the recent failure of a Bangladesh Biman plane not being able to land for a long time due to a fault in the landing gear, mismanagement at Cox’s Bazar Airport due to a cow trespassing the runway during a plane take-off and the cow ending up being hit on the plane’s wheels. Incidents like the front wheel rupture during the landing of Novo Air planes in 2019 and 2021 have raised questions among the people about the infrastructure and safety of Bangladesh’s aviation industry. Moreover, due to the obsolescence of many airlines other than aircraft, their maintenance is complicated and the cost is high.

Suggestions​

Transport systems are developed at various major airports and cities around the world, integrating air travel with all other modes of transport. As a result, passengers are able to travel quickly and very easily in combination with other modes of transport with Aviation as it is connected to Aviation with buses, trains, metros, etc.

But all the airports in Bangladesh are a bit far from the city and isolated from other transport modes. Although there are currently plans to connect Dhaka Airport with Metrorail and the Metrorail with Kamalapur station, it will take time till 2030 to fully implement this plan. Until then, the airport can be temporarily linked with other transports.

Moreover, there is no plan to connect aviation with other transports in cities outside Dhaka. Below standard service complaints are often leveled against Bangladesh airlines. Airline staff need to be educated and trained in hospitality management and customer service. Again, the improvement of ground handling in the airports of Bangladesh has become a vital need. Because often the mismanagement of ground handling with luggage becomes an inconvenience for passengers. In the case of aviation, the Civil Aviation Authority charges the airlines for various services of which interest is added if the payment is not made on time. The global interest rate on this invoice is 12%, but CAAB charges 80%, which is not favorable for airline business. If this problem can be solved through mutual understanding, then the development of the aviation industry of this country can be expected.

 

[Saif]

Growth in Bangladesh aviation industry to triple in 15 years: State Minister

The growth in the aviation industry of Bangladesh has doubled in the past 10 years and is set to be tripled in the next 15 years, said State Minister for Civil Aviation and Tourism Md Mahbub Ali. Reiterating the government’s aspiration to transform Bangladesh into a global aviation hub, the

thefinancialexpress.com.bd

Growth in Bangladesh aviation industry to triple in 15 years: State Minister​

Published :
Oct 15, 2023 19:48
Updated :
Oct 15, 2023 19:55

The growth in the aviation industry of Bangladesh has doubled in the past 10 years and is set to be tripled in the next 15 years, said State Minister for Civil Aviation and Tourism Md Mahbub Ali.

Reiterating the government’s aspiration to transform Bangladesh into a global aviation hub, the state minister said: "Under the leadership of Prime Minister Sheikh Hasina, the government is working sincerely to make this possibility a reality."
He made the remarks while speaking as a chief guest at the 58th DGCA conference, organized by Bangladesh Civil Aviation Authority at a hotel in the capital.

As the country marks 50 years of its membership at the International Civil Aviation Organization (ICAO), the state minister said Prime Minister Sheikh Hasina is working to realize Banganbandhu’s dream to transform this country into an aviation hub.

Mahbub Ali said, "Under the leadership of Prime Minister Sheikh Hasina, the architect of modern Bangladesh, the aviation industry of Bangladesh has developed in the last 14 and a half years by ensuring international standards. "

"In order to ensure the rapid growth of the aviation industry and to maintain international standards, various development works including the construction of the third terminal of Hazrat Shahjalal International Airport have already been completed,” he added.

The state minister said several other development works are underway at all airports across the country, including timely infrastructure development and expansion, public efficiency development, safety improvement and safe aviation.

“Our goal is to make Bangladesh one of the world's aviation hubs, harnessing the potential and geographical importance of Bangladesh,” he added.
The state minister highlighted various sustainable and visionary initiatives taken by Prime Minister Sheikh Hasina to empower women and ensure gender equality in the aviation industry and beyond.

Chaired by Civil Aviation Authority Chairman Air Vice Marshal Md Mofidur Rahman, the inaugural ceremony of the 58th DGC Conference was also addressed by ICAO Council President Salvatore Sciacchitano, Secretary of the Ministry of Civil Aviation and Tourism Md Mokammel Hossain and ICAO Council Secretary General Juan Carlos Salazar.

 

[Bilal9]

I am thinking Civil Aviation probably belongs to Infrastructure section. I created a thread "Civil Aviation" under "infrastructure" there. Aviation Industry is generally seen as mfg. of airplanes, which we do have as a sector (but still small). You and I are both right, in a way - so up to you if you want to keep it here.

 

[Saif]

When I opened 'aviation industry' thread, I had one thing in my mind to discuss both military and civil aviation industries here. Unfortunately I am against dividing aviation industry as military and civil aviation at this moment. I want to keep both military and civil aviation industries under one big umbrella......'aviation industry'. Since the aviation industry is small in Bangladesh so if we divide it into military and civil aviation we won't have much to discuss. Hope you understand my point.

 

[Bilal9]

When I opened 'aviation industry' thread, I had one thing in my mind to discuss both military and civil aviation industries here. Unfortunately I am against dividing aviation industry as military and civil aviation at this moment. I want to keep both military and civil aviation industries under one big umbrella......'aviation industry'. Since the aviation industry is small in Bangladesh so if we divide it into military and civil aviation we won't have much to discuss. Hope you understand my point.

OK understood your points which are valid. I will close the civil aviation thread then and we can keep this one.

 

[Bilal9]

HSIA’S THIRD TERMINAL

Shaping Bangladesh’s future as an aviation hub​

Photo: Naimur Rahman

The adage 'first impressions are the last impressions, and often the most enduring' rings true, particularly in the context of cities and countries, where airports play a pivotal role in shaping these impressions.

Dhaka's old-fashioned Hazrat Shahjalal International Airport (HSIA), built in 1980, has not undergone any major renovations since then. Furthermore, the main gateway to the country by air does not align with the present state of the capital, especially as Bangladesh is advancing towards becoming a developing nation.

With this backdrop, the dream of constructing the iconic and spectacular third terminal at HSIA, which began in December 2019, has finally become a reality today. Prime Minister Sheikh Hasina will soft launch the third terminal amid celebrations.

"It's a dream come true. The eye-catching design and modern structure of the iconic terminal, along with world-class facilities, will redefine the passenger experience at Dhaka Airport," said Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal M. Mafidur Rahman.

"With the usage of the third terminal, your journey will be a pleasant experience. The definition of people's airport experience will change with the full operation of this terminal," he added.

The CAAB chief explained that the third terminal is being built in a way that allows passengers to get a good idea of Bangladesh upon landing at the airport. All kinds of facilities will be available in this terminal.
Approximately 90 percent of the terminal's construction work is completed, with ongoing work on interior decoration and the installation of various types of equipment.

Bangladesh's prospects of becoming a regional aviation hub will brighten with the full operation of the third terminal, as many foreign carriers have already expressed interest in operating flights to and from Dhaka, which will also contribute to the country's economic growth.

The third terminal will remain connected to the airport route of the MRT Line-1 project, according to MA Malek, chief engineer of the CAAB. Therefore, anyone arriving at Kamlapur Rail Station from any part of the country will be able to reach the third terminal via the underground metro rail, which spans 19.87 kilometers from Kamlapur to the Airport and includes 12 stations.

The third terminal will also be connected to the Airport Railway Station, allowing travelers to access the terminal via an underground path between the Airport Rail Station and the third terminal, as explained by an official of the third terminal project.

Moreover, pilgrims will have the option to access the terminal through an underground tunnel connected to the Ashkona Hajj Camp. Additionally, an elevated expressway will provide convenient access to the terminal.

Inbound passengers arriving from different countries, like outbound travelers, will be able to exit the airport without any hassle or inconvenience.

Despite its soft opening, air travelers will have to wait until the end of next year to fully utilize the terminal's services. This is due to the necessary calibration and preparation of the equipment used in terminal operations, as clarified by the CAAB boss. However, airlines will be able to use the new parking apron and taxiway of this terminal.

With its existing two terminals, HSIA is already operating at full capacity, handling eight million passengers annually. Anticipating passenger numbers to reach 14 million by 2025 and 24.8 million by 2035, the urgent need for the construction of a world-class terminal became evident.

In parallel with the third terminal project, four additional works are underway, including the construction of two high-speed taxiways alongside the terminal, which will expedite aircraft runway clearance and reduce take-off wait times.

Currently, car parking is a major problem at this airport, but the new terminal will have a parking facility for around 1,230 cars.

The celebrated architect Rohani Baharin designed the third terminal, with construction undertaken by Mitsubishi and Fujita of Japan and Samsung of Korea.

Anticipating passenger numbers to reach 14 million by 2025 and 24.8 million by 2035, the urgent need for the construction of a world-class terminal became evident.

“Third terminal will offer world-class services like those at Changi and Dubai airports”​

Air Vice Marshal M. Mafidur Rahman, Chairman, CAAB

The iconic third terminal at Hazrat Shahjalal International Airport will be a game-changer for the country's aviation sector, and passengers' existing negative mindset will be transformed when they receive world-class service at this terminal.

Chairman of the Civil Aviation Authority of Bangladesh (CAAB), Air Vice Marshal M Mafidur Rahman, mentioned this in an interview with The Daily Star.
"At present, passengers using terminals 1 and 2 have a negative mindset as they witness a huge crowd and chaos at Dhaka airport, which is currently operating unsystematically," he explained.

Currently, departure and arrival formalities occur at the same place within the airport, resulting in long queues and crowds at immigration and the luggage belt, congested areas, and inadequate lighting, all contributing to passengers' negative perceptions.

Then there's the issue of service, which is not up to par at Dhaka airport presently.

"Now, people will feel relaxed after landing at Dhaka Airport, and they will get an image of the country—what it's like while using the third terminal," said the CAAB boss.

The aesthetic beauty, design, and spaciousness of the third terminal will provide passengers with world-class service comparable to Changi Airport in Singapore or Dubai Airport.

"It's a dream come true. The eye-catching design of the terminal and having world-class facilities will change the definition of providing passenger service at Dhaka Airport," Mafidur said.

An adequate number of wide glass lifts, escalators, lighting facilities, luggage conveyor belts, immigration and check-in counters, cabin and hold baggage X-ray machines, and body scanners will provide passengers with smooth service facilities.

Every system within the third terminal, including luggage handling, will be fully integrated and automated.

Regarding the operation and maintenance of the third terminal, the CAAB chairman said that it will be provided by a Japanese company, as they are already efficiently handling various international airports with a good reputation and maintaining international standards.

"We are hoping that passengers will receive better service with this new management of the third terminal," added Mafidur.

He also mentioned that a modernized approach will be ensured while distributing commercial entities at the third terminal, which was absent in terminals 1 and 2.

There was no system in place for allocating commercial shops at these two terminals. A completely non-standard pattern was followed in this regard. Food and beverage outlets, duty-free shops, airport lounges, and all other shops will be allocated following global international practices.

The third terminal was also built with an environmentally friendly approach, maximizing natural daylight and minimizing electricity usage.

Most of the technologies and equipment used in the airports of G7 countries were also used in the third terminal.

In the third terminal, passengers will not need any assistance as everything will be well-displayed. Furthermore, an artificial intelligence-based sensor will be incorporated in this third terminal in the next phase.

After the single security check, passengers will be able to board the aircraft directly, eliminating the existing six to seven check-ups at terminals 1 and 2, as explained by Mafidur.

"Considering all these factors, the third terminal will be a milestone for Bangladesh," he added.

Similarly, outbound travelers and inbound passengers arriving from different countries will also be able to exit the airport without any hassle or inconvenience.

"There is a saying that the first impression is the last impression. We have built the third terminal in such a way that any foreigners landing at Dhaka Airport can understand that Bangladesh has undergone significant changes and is progressing towards becoming a developed nation," he added.

The CAAB chief mentioned that with the launch of the third terminal, Bangladesh will also become a regional aviation hub. This will truly be a game-changer, positioning Bangladesh as the "Switzerland of the East" due to its global location.

He also noted that transit passengers will be able to spend their time comfortably at the third terminal.

"A large lounge has been constructed for transit passengers in the new terminal. It will serve 4 million passengers annually," he said, adding, "Passengers will also enjoy seamless travel transitions to and from the airport."

To meet passengers' needs during transit, a range of amenities is being introduced, including movie lounges and food courts designed to enhance the passenger experience.

Additionally, airline lounges and dayrooms will be available for travelers seeking comfort and relaxation.

A children's play area equipped with sleeper swings will be provided for young travelers to enjoy.

 

[Saif]

https://thefinancialexpress.com.bd/national/unlock-climate-finance-stop-arms-race-hasina-to-global-leaders

Govt moves to build airport near Kuakata beach​

GULAM RABBANI
Published :
Feb 17, 2024 10:58
Updated :
Feb 17, 2024 10:58

The Civil Aviation Authority of Bangladesh (CAAB) has begun initial work on building a new airport at Kuakata, one of the country's most scenic tourist destinations, to improve access for visitors and facilitate commercial activities around the Payra Seaport.

A five-member team from the Ministry of Civil Aviation and Tourism and the Civil Aviation Authority visited Kuakata on Friday to begin a preliminary survey of the site.

Md Jahirul Islam, director (Administration) of the CAAB, leads the delegation.

He said the proposed airport may need at least 3000 acres of land. A site at Chakamaia union parishad under Kalapara upazila of Patuakhali district could be the potential spot.

Apart from land acquisition, building a new airport involves many technical considerations.

About Chakamaia, Mr Islam said, "This area is very close to the sea, so we need to assess tidal conditions, wind direction and other factors. We will submit a report to the ministry after our survey."

Following the initial survey, the ministry will conduct a feasibility study to determine the airport's structure and viability, added the official.

An airport in the region could boost commercial activity around the Payra Seaport and attract more tourists to Kuakata.

This southern district boasts the second-largest beach in the country after Cox's Bazar and draws a huge number of domestic and international tourists each year. Its 18 km-long, 3 km-wide sandy beach offers stunning sunrises and sunsets over the Bay of Bengal.

Apart from the natural beauty, Kuakata offers attractions like the diverse lifestyle of the Rakhine people, a historic well, ancient boats and Buddhist and Hindu temples.

Previously, the 13-14 hour journey from Dhaka to Kuakata included a perilous ferry ride across the Padma River. However, with the opening of the Padma Bridge, the travel time from the capital has been reduced to just five or six hours.

This has been drawing many visitors to travel to Kuakata for refreshments.

"Connectivity is key for tourism and commercial activities," says Shiblul Azam Koreshi, president of the Tour Operators Association of Bangladesh (TOAB).

"An airport in Kalapara would greatly benefit both tourism centred on Kuakata and commercial activities around the Payra Seaport."

Koreshi believes an airport could elevate Kuakata's importance as a tourist destination, similar to Cox's Bazar.​