[🇧🇩] Aviation Industry in Bangladesh

G Bangladesh Defense
[🇧🇩] Aviation Industry in Bangladesh
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Bangladesh to Pakistan scheduled direct air-link about to be implemented (With Biman and PIA to start services soon). This was decided at the meeting between the Senior Business officials (FPCCI) of Pakistan and FBCCI (Bangladesh Business side).



 
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Exorbitant airfares must be curbed
It is the Middle East-bound migrant workers who are bearing the brunt

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VISUAL: STAR

We are concerned about the soaring airfares on various routes, particularly those to Middle Eastern countries, which are the primary destinations for our migrant workers. Reportedly, ticket prices on these routes have surged two to three times due to an artificial crisis created by an unregulated market system and inadequate government oversight. According to data from the Association of Travel Agents of Bangladesh (ATAB), the cost of flying to Saudi Arabia has jumped from Tk 45,000–50,000 to around Tk 1.90 lakh, which is unjustifiable. While the high ticket prices are affecting all outbound passengers on these routes, it is our migrant workers who are suffering the most.

A key driver of this surge is the unethical practice of some airlines blocking group seats months in advance through email bookings—without requiring passenger names, passports, visas, or work permits. In other words, they create PNRs (Passenger Name Records) without providing any details of passengers, allowing certain agencies to hoard tickets and create artificial demand.

A key driver of this surge is the unethical practice of some airlines blocking group seats months in advance through email bookings—without requiring passenger names, passports, visas, or work permits. In other words, they create PNRs (Passenger Name Records) without providing any details of passengers, allowing certain agencies to hoard tickets and create artificial demand. Reports indicate that as many as 60,000 seats on Saudi-bound flights of 11 airlines—including Fly Dubai, Jazeera Airways, Gulf Air, and Salam Air—have been blocked in this manner.

Unfortunately, this is not the first time such malpractice has been reported. Last year, Malaysia-bound migrant workers faced a similar crisis when a syndicate comprising Biman officials and high-ups artificially inflated ticket prices. As a result, thousands of workers failed to reach Malaysia before the May 31 deadline, when the labour market there closed for Bangladeshis. Our migrant workers already have to bear high migration costs, and these excessive airfares only worsen their struggles.

The syndicate of travel agencies hoarding tickets must be dismantled, and a task force—including representatives from relevant ministries and CAAB—should be formed to hold unethical travel agents and airline staff accountable. Airlines must also impose a maximum sales limit per agency to prevent hoarding and price manipulation.

We, therefore, urge the Civil Aviation Authority of Bangladesh (CAAB) to take immediate action to stop these unfair practices. The syndicate of travel agencies hoarding tickets must be dismantled, and a task force—including representatives from relevant ministries and CAAB—should be formed to hold unethical travel agents and airline staff accountable. Airlines must also impose a maximum sales limit per agency to prevent hoarding and price manipulation. Furthermore, a reasonable minimum and maximum fare should be set for different routes. To ensure transparency, tickets for migrant workers and Umrah pilgrims must clearly specify fare and agency details. Without such measures, illegal practices will persist, making air travel increasingly unaffordable for those who need it most.​
 

Aircraft shortages stifle Biman's revenue potential
The airline feels the need to increase its daily flights to Jeddah from 1 to 2
GULAM RABBANI
Published :
Jan 29, 2025 00:33
Updated :
Jan 29, 2025 00:33

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Biman Bangladesh Airlines is unable to operate flights to potentially profitable international destinations due to aircraft shortages, its Managing Director and Chief Executive Officer (CEO) Dr Md Shafiqur Rahman has told The Financial Express.

This is depriving the country's largest airline, as well as the national flag carrier, of a huge amount of potential revenue, he said.

However, he said some aircraft would be added to the fleet on lease in a few months to operate flights to new destinations.

"We cannot expand our routes due to aircraft shortages. We are trying to get some aircraft on a long-term lease. The planes will be purchased eventually," said Rahman.

Biman now operates flights to 30 domestic and international destinations with 21 aircraft.

In the face of a surge in international air travels and competition with foreign airlines, Biman in March last year made a decade-long ambitious plan that involved purchasing at least 26 new aircraft and route expansion.

According to the plan, Biman's fleet would expand from 21 to 47 aircraft by 2034, marking a 123.81 per cent growth. Adding at least eight aircraft with 300 seats, six with 270, six with 160, four with 70, and one with 400 was part of the plan.

The Biman administration at the time decided to implement the plan gradually. However, the new Biman CEO, who assumed office after the July-August uprising last year, said they are yet to decide whether implementation would continue as per the original plan or it would be revised.

It is not possible to purchase any aircraft right now because of the long manufacturing and delivery period. If ordered now, aircraft may not be delivered before 2035. That is why Biman has to get aircraft on lease first if it wants to expand its fleet, explained Rahman.

Malé, Jakarta, Colombo, and Sydney are the next possible profitable destinations for Biman, said Boshra Islam, general manager (public relations) of the organisation.

Biman operates one flight to Jeddah every day. However, the authorities feel the need to operate another flight to this Middle Eastern destination as it seems profitable.

In the meantime, Biman has started the process to get three aircraft on lease, two with 200 seats and one with 300. It may be finished before the next Hajj season.

Biman has not yet finalised which company it will get the aircraft from on lease. The board will discuss the matter in more detail and a decision will then be made, said Rahman.

A decision to purchase aircraft from Airbus was made in May last year amid visible competition between the European company and the American giant Boeing, which was seen by some as a duel for the control of Bangladesh's airspace.

Sixteen of Biman's current 21 aircraft were made by Boeing. While a mixed fleet increases costs, the diversity also provides operational advantages and security against potential disruptions if one manufacturer faces difficulties.

Biman and US-Bangla Airlines are currently operating international flights from Bangladesh.

Industry insiders said the two airlines hold only 18-20 per cent share of Bangladesh's aviation market, while foreign airlines account for the remaining 80 per cent.​
 

Aircraft shortages stifle Biman's revenue potential
The airline feels the need to increase its daily flights to Jeddah from 1 to 2
GULAM RABBANI
Published :
Jan 29, 2025 00:33
Updated :
Jan 29, 2025 00:33

View attachment 13789

Biman Bangladesh Airlines is unable to operate flights to potentially profitable international destinations due to aircraft shortages, its Managing Director and Chief Executive Officer (CEO) Dr Md Shafiqur Rahman has told The Financial Express.

This is depriving the country's largest airline, as well as the national flag carrier, of a huge amount of potential revenue, he said.

However, he said some aircraft would be added to the fleet on lease in a few months to operate flights to new destinations.

"We cannot expand our routes due to aircraft shortages. We are trying to get some aircraft on a long-term lease. The planes will be purchased eventually," said Rahman.

Biman now operates flights to 30 domestic and international destinations with 21 aircraft.

In the face of a surge in international air travels and competition with foreign airlines, Biman in March last year made a decade-long ambitious plan that involved purchasing at least 26 new aircraft and route expansion.

According to the plan, Biman's fleet would expand from 21 to 47 aircraft by 2034, marking a 123.81 per cent growth. Adding at least eight aircraft with 300 seats, six with 270, six with 160, four with 70, and one with 400 was part of the plan.

The Biman administration at the time decided to implement the plan gradually. However, the new Biman CEO, who assumed office after the July-August uprising last year, said they are yet to decide whether implementation would continue as per the original plan or it would be revised.

It is not possible to purchase any aircraft right now because of the long manufacturing and delivery period. If ordered now, aircraft may not be delivered before 2035. That is why Biman has to get aircraft on lease first if it wants to expand its fleet, explained Rahman.

Malé, Jakarta, Colombo, and Sydney are the next possible profitable destinations for Biman, said Boshra Islam, general manager (public relations) of the organisation.

Biman operates one flight to Jeddah every day. However, the authorities feel the need to operate another flight to this Middle Eastern destination as it seems profitable.

In the meantime, Biman has started the process to get three aircraft on lease, two with 200 seats and one with 300. It may be finished before the next Hajj season.

Biman has not yet finalised which company it will get the aircraft from on lease. The board will discuss the matter in more detail and a decision will then be made, said Rahman.

A decision to purchase aircraft from Airbus was made in May last year amid visible competition between the European company and the American giant Boeing, which was seen by some as a duel for the control of Bangladesh's airspace.

Sixteen of Biman's current 21 aircraft were made by Boeing. While a mixed fleet increases costs, the diversity also provides operational advantages and security against potential disruptions if one manufacturer faces difficulties.

Biman and US-Bangla Airlines are currently operating international flights from Bangladesh.

Industry insiders said the two airlines hold only 18-20 per cent share of Bangladesh's aviation market, while foreign airlines account for the remaining 80 per cent.​

This is what happens when air force people with zero clues (or experience) on how to run airlines - become MD of an airline like Biman.

Running airlines needs way more experience (especially on fleet utilization and hiring, not buying extra fleet assets) and we need to hire veterans, preferably from airlines in EU or UK. This has been done in the past but they were never let to do things independently.

If you eff up like this - then no one will want to work for Biman. It got a bad rap overseas.

Biman has plenty of airplanes - planned utilization and route refining is the problem.

I know of a few of the Biman staff, they could not plan auto-rickshaw routes.
 
This is what happens when air force people with zero clues (or experience) on how to run airlines - become MD of an airline like Biman.

Running airlines needs way more experience (especially on fleet utilization and hiring, not buying extra fleet assets) and we need to hire veterans, preferably from airlines in EU or UK. This has been done in the past but they were never let to do things independently.

If you eff up like this - then no one will want to work for Biman. It got a bad rap overseas.

Biman has plenty of airplanes - planned utilization and route refining is the problem.

I know of a few of the Biman staff, they could not plan auto-rickshaw routes.
How Ethiopia, a much poorer country than Bangladesh, has built a world class airlines? Bangladesh Biman should learn from Ethiopia.
 
How Ethiopia, a much poorer country than Bangladesh, has built a world class airlines? Bangladesh Biman should learn from Ethiopia.

You are correct about Ethiopia being a much poorer country, but that is more because part of their population are nomadic and uneducated who now belong to their country I believe.

Middle and upper class Ethiopians are a highly educated bunch and as befits an educated upper middle class in otherwise relatively undeveloped Africa where competition is a bit rare, have been running and using their own airline since the early 1950's with the most modern equipment (airplane) available. Their culture and language dates from pre-Islamic times (even the times of the Pharaohs) and some of early persecuted Sahabas from Hazrat Nabi SAW took refuge at that kingdom (the generous king who later accepted Islam himself).

Current Ethiopians are a mix of different religions.

This is an Ethiopian Airline flight crew from the 1950's. Very well-trained and professional.

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Currently Ethiopian has the largest airline fleet in Africa.

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You are correct about Ethiopia being a much poorer country, but that is more because part of their population are nomadic and uneducated who now belong to their country I believe.

Middle and upper class Ethiopians are a highly educated bunch and as befits an educated upper middle class in otherwise relatively undeveloped Africa where competition is a bit rare, have been running and using their own airline since the early 1950's with the most modern equipment (airplane) available. Their culture and language dates from pre-Islamic times (even the times of the Pharaohs) and some of early persecuted Sahabas from Hazrat Nabi SAW took refuge at that kingdom (the generous king who later accepted Islam himself).

Current Ethiopians are a mix of different religions.

This is an Ethiopian Airline flight crew from the 1950's. Very well-trained and professional.

View attachment 13890


Currently Ethiopian has the largest airline fleet in Africa.

View attachment 13891
Your reply was very informative. Thank you.
 

Biman completes in-house C-check, fuel tank addition for Boeing 737
UNB
Published :
Feb 06, 2025 22:34
Updated :
Feb 06, 2025 22:34

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Biman Bangladesh Airlines has successfully completed a significant milestone by conducting the C-8 check and adding a fuel tank to one of its Boeing 737 aircraft using its own manpower.

This achievement was celebrated during a ceremony held at the airline's hangar complex in Dhaka's Kurmitola on Thursday.

The C-check, a thorough inspection procedure carried out after an aircraft has flown for 3,000 hours, is a complex and costly process typically conducted every eight years. Traditionally, these checks have been outsourced to foreign companies or organisations. However, by completing the check in-house, Biman Bangladesh Airlines has claimed a savings of at least two million dollars.

Biman Board Chairman Abdul Mueed Chowdhury was present at the time. "That's how the DC-10 C-checks were done here. I have many memories associated with that, and I'm very pleased that our colleagues have saved so much money completing this work here," he said.

"After five months of hard work, we have completed the C-check of this aircraft. The last C-check of this aircraft was done in 2017 in Indonesia. But this time, with the effort of our engineering department and Boeing's technical assistance, we completed the C-check," said Biman's Engineering and Material Management Department Director Air Commodore Md Monirul Islam.

"If this check had been done abroad, it would have cost Tk 200 to 250 million. I have the calculation that the C-check of this aircraft costs around USD 350,000, with chemicals and other things adding another USD 75,000. In total, the expense was about Tk 60 to 70 million. Now that the check has been completed, I hope this aircraft can fly for at least five to six more years," he said.

The Boeing 737, which underwent the C-check, was manufactured in September 2001 and has flown for 61,683 hours, completing 35,125 flight cycles. The C-check involved a detailed inspection, repair, and modification process that required special expertise and commitment.

After the ceremony, Chairman Abdul Mueed Chowdhury toured the interior of the aircraft.

Biman Managing Director and CEO Safiqul Rahman, Board member Shahriar Ahmed Chowdhury, and Shahjalal International Airport Executive Director Group Captain Kamrul Islam were present at the time, among others.​
 
Masha'Allah wonderful achievement!

C-checks are the first step, then eventually "D"-Checks as well (complete teardown of seats, flooring, de-laminations of skin and panels from structure etc. to check for stress-induced cracks).

I am happy that Biman still has one of the youngest (if not THE youngest) state-run airline fleets in South Asia. And service is quite a bit better than other State-run airlines in South Asia, but not as good (especially on-time departures etc.) like Emirates or S'pore (SQ) level. Click to enlarge image.

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Masha'Allah wonderful achievement!

C-checks are the first step, then eventually "D"-Checks as well (complete teardown of seats, flooring, de-laminations of skin and panels from structure etc. to check for stress-induced cracks).

I am happy that Biman still has one of the youngest (if not THE youngest) state-run airline fleets in South Asia. And service is quite a bit better than other State-run airlines in South Asia, but not as good (especially on-time departures etc.) like Emirates or S'pore (SQ) level. Click to enlarge image.

View attachment 14329
The government has a plan to buy 10-15 wide bodied passenger planes to reduce losses of Bangladesh Biman. I think they will go for Air Bus instead of Boing. It is my understanding that Bangladesh needs to establish an overhauling plant to overhaul all the passenger planes in the inventory. It will reduce cost which will in turn help increase profits.
 

Biman terms blockade over alleged irregularities in recruitment test as ‘propaganda’
bdnews24.com
Published :
Mar 02, 2025 00:00
Updated :
Mar 02, 2025 00:00

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Biman Bangladesh Airlines has termed the road blockade over alleged irregularities at the agency’s recruitment test as ‘propaganda’.

Sher-e-Bangla Nagar Police Station chief Mohammad Golam Azam said a group of students blocked the road in the capital’s Asad Gate area alleging a leak of question papers during Biman’s recruitment test at around 5:30pm on Saturday.

“They left the road shortly after and traffic returned to normal."

The test was suspended at two separate centres [Lalmatia Girls’ High School and College and Lalmatia Government Women's College] after the students took to the streets in the evening over the allegation of irregularities in the exam.

In a statement, Biman said the recruitment test for the position of “Commercial Assistant” was held on Saturday.

The examination was conducted by Dhaka University’s Institute of Business Administration, or IBA, which was responsible for the preparation of question papers, centres, and evaluation of test papers.

According to Biman, a total of 31,917 candidates appeared in the exam at 15 centres.

Out of them, question papers for two centres arrived 22 minutes after the scheduled time due to heavy traffic on the road.

The exam was scheduled to commence at 3pm. When the vehicles carrying test papers arrived at the centres, a group of people standing outside the centres blocked them without any “provocation”, sparking the “propaganda” of question paper leak, the airline said.

Later, police reached the spot and tried to bring the situation under control.

Apart from these two, the exams were conducted peacefully at 13 other centres, the national flag carrier said.

When contacted on behalf of Biman, the IBA authorities claimed their question-carrying vehicles were stopped by a group of people.

Alongside this they “illicitly” spread “rumours” of question leaks, prompting the suspension of the test at those centres.

The authorities added that legal action is being taken in this regard. They will inform Biman about the decision concerning those two test centres.

In the statement, Biman also says it believes a group of people blocked the question-carrying vehicles with a "special motive" to tarnish the image of the airline and the government.​
 

Biman enhances ground handling capacity at 3rd terminal
UNB
Published :
Mar 05, 2025 23:35
Updated :
Mar 05, 2025 23:35

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Biman Bangladesh Airlines enhanced its handling capacity at Hazrat Shahjalal International Airport's third terminal by adding 32 new pieces of ground support equipment (GSE) on Wednesday.

The programme titled "New Ground Support Equipment Commissioning 2025," was organised at Biman Bangladesh Airlines' GSE department, according to a press release.

The new equipment, worth Tk 540 million, includes advanced tools for improving ground handling at the newly built Terminal 3 of the airport, according to a press release.

Among the equipment are 2 aircraft container pallet loaders from OSHKOSH, USA; 12 aircraft container pallet transporters and 9 belt loaders from TLD, France; 2 aircraft air conditioning units (115 tonnes) and 5 smaller air conditioning units (65 tonnes) from TLD, USA; and 2 air start units from Guinault, France.

This addition enhances Biman's ground handling capabilities at the airport, further boosting its service efficiency.

Biman has also recently expanded its fleet with four forklifts, five modern passenger coaches, eighteen tow tractors, six belt loaders, two pushback tow tractors, and eight ground power units worth Tk 350 million.

According to the release, six more aircraft passenger steps, four push carts, and four state-of-the-art ambulifts will be added to the fleet.

In addition, 14 aircraft container pallet loaders, 4 potable water carts, 6 flush carts, and 250 baggage trolleys, among others, are under procurement process to continue improving operations, said the press release.

Biman is also recruiting 193 new employees, including assistant managers, GSE operators, and mechanics.

These efforts are part of Biman's commitment to improving its ground handling standards and providing better service at Hazrat Shahjalal International Airport.

Abdul Muyid Chowdhury, chairman of Biman's Board of Directors; Air Vice Marshal Md. Manjur Kabir Bhuiyan, chairman of the Civil Aviation Authority of Bangladesh; and Dr Md Shafiqur Rahman, managing director and CEO of Biman Bangladesh Airlines, were present.​
 

Mideast routes: Govt intervention cuts airfares by 75%, says ATAB

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Airfares, particularly for flights to Saudi Arabia, have dropped by nearly 75% following government intervention and stricter regulations, according to the Association of Travel Agents of Bangladesh (ATAB).

Between December and February, passengers faced exorbitant fares for flights from Dhaka to major Saudi cities, with prices soaring to Tk 190,000 under group booking schemes.

However, ticket prices have now dropped significantly, with fares as low as Tk 48,000 to Tk 50,000 following government interventions. Some airlines are even offering tickets for Dhaka-Dammam and Dhaka-Riyadh routes for as little as Tk 35,000, it said.

To curb rising airfares and ensure market discipline, the Ministry of Civil Aviation and Tourism issued a directive on February 11, enforcing stricter regulations on ticket bookings.

The directive aims to enhance transparency and eliminate artificially inflated prices for key destinations such as Jeddah, Madinah, Dammam, and Riyadh. Under the new rules, tickets must be booked with the passenger's name, passport details, and a photocopy of the passport. This measure has led airlines to release previously blocked tickets, increasing seat availability in reservation systems.

As a result, both passengers and travel agencies now have real-time access to ticket fares and seat availability, fostering competition and driving prices down.

In a statement, ATAB praised the government's intervention as a timely and necessary step to ease financial pressure on travelers, particularly migrant workers who rely on affordable air travel.

"This initiative benefits not only passengers but also the travel industry by ensuring a more transparent and competitive market. We are grateful to the Ministry of Civil Aviation and Tourism for taking this decisive step," said ATAB Secretary General Afsia Jannat Saleh.

However, Afsia stressed the need for continued government oversight.

"Strengthened monitoring and regulatory enforcement will be essential to prevent airlines from reverting to old practices," she added, calling for additional laws to maintain market stability and protect consumers from inflated prices in the future.

"If effectively enforced, this initiative is expected to bring lasting changes to the air ticket industry, benefiting Bangladeshi passengers, particularly migrant workers," she said.

ATAB also acknowledged the contributions of Chief Advisor Professor Dr. Muhammad Yunus, Expatriate Welfare and Overseas Employment Advisor Dr. Asif Nazrul, Special Envoy for International Affairs Lutfey Siddiqi, and Civil Aviation and Tourism Secretary Begum Nasrin Jahan in addressing the issue.

With the directive and ongoing monitoring, ATAB remains optimistic that Bangladesh's air travel market will stay disciplined and tickets will remain affordable.

Earlier this year, on January 26, ATAB urged government intervention during a press conference, calling for immediate action against soaring ticket costs and market syndication.​
 

CAAB’s monopoly is a barrier to aviation growth

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Now is the time to rein in CAAB’s monopolisation over the country's airports, and ensure that they are run by competent, professional, and an accountable manpower. File photo: Palash Khan

In Bangladesh, airlines are often the primary target of complaints about poor services, both from passengers and the media. While some of these grievances are justified, not all issues can be attributed solely to the airlines.

General passengers may not realise that nearly 30 years after airline privatisation, the Civil Aviation Authority of Bangladesh (CAAB) still has a full monopoly on the country's airport and aviation infrastructure.

CAAB's bureaucrats, lacking accountability, have squandered crores in the name of airport development since the 1990s, seeking billions for unnecessary and wasteful projects. It submitted an exorbitant Tk 10,000 crore funding request to the government to extend Saidpur airport's runway from 6,000 feet to 10,000 feet in the name of regional connectivity. The question is: did CAAB conduct a business case with a detailed financial forecast to justify its funding request?

According to CAAB, the project will transform the Saidpur airport into an international one as well as a regional cargo hub. The extended runway would be able to accommodate larger aircraft carrying over 300 people, targeting passenger as well as cargo aircraft from Nepal, Bhutan, and India's Seven Sisters.

According to media reports, in 2019, Nepal expressed interest in enhancing regional connectivity by establishing direct flights between its small regional airports—Bhadrapur and Biratnagar—and Saidpur in Bangladesh. Both of the Nepali airports have a single 5,000-foot runway. Saidpur airport, with a lower altitude and longer runway (6,000 feet), can accommodate much larger aircraft than the Bhadrapur and Biratnagar airports. Meanwhile, Bhutan, due to its high altitude and mountainous terrain, does not have an airport capable of handling as large an aircraft as Saidpur can.

Moreover, Saidpur is the farthest Bangladeshi airport from the population centres in the Seven Sisters region. Bangladesh's three existing international airports—Dhaka, Chattogram, and Sylhet—despite being closer, have no direct air service with that region in India.

Even after spending billions of dollars on constructing three under-utilised 10,000-foot runways outside Dhaka (Chattogram, Sylhet, and Cox's Bazar), CAAB continues to push the false narrative that an airport must have a 10,000-foot runway to operate international flights. In reality, the primary requirement for an airport to be designated "international" is the presence of a customs and immigration facility. To establish regional connectivity with Nepal and Bhutan, Saidpur simply requires a customs and immigration processing facility—not a costly, billion-dollar runway expansion. Its existing runway is sufficient to accommodate flights from Bhadrapur and Biratnagar airports in Nepal and any airport in Bhutan.

Besides, one can take the Skiathos Alexandros Papadiamantis Airport in Greece as a case in point. It handled over 600,000 passengers across Europe in 2024 utilising a 5,341-foot runway.

The development of Bogura airport can also be presented as another example of rampant waste and incompetence.

In January 2025, CAAB announced that Bogura airport needed a 1,300-foot runway expansion, costing taxpayers Tk 1,200 crore. It would take two years to start commercial service, it said.

The existing runway and passenger processing facilities at Bogura airport may require some repairs and upgrades to initiate commercial operations, but not an expensive and prolonged runway expansion.

Despite receiving billions of dollars in taxpayer funding and benefiting from low labour costs, CAAB, which serves as the regulator, promoter, and sole provider of airports and air traffic control services, has yet to succeed in building a healthy aviation sector.

According to the International Air Transport Association (IATA), the total economic impact of aviation in Bangladesh is only $5.3 billion, compared to over $17 billion in other similarly sized economies, such as Denmark and Vietnam. Vietnam's commercial jet fleet is nearly eight times larger than that in Bangladesh. Even more concerning is that Bangladesh's aviation industry lacks the skilled workforce and infrastructure to effectively operate and maintain a fleet of only 25 commercial jets.

The civil aviation authority has also not been able to attract a single airline from regions outside the Asia-Pacific and the Middle East to operate flights to Bangladesh. This has tremendously impacted the country's connectivity, trade, remittance flow, and overall economic growth.

Unless CAAB is restructured solely as a regulatory body and airport operations are spun off into separate entities, Bangladesh will keep facing challenges in building a globally competitive aviation industry.

To run the country's airports, Bangladesh could adopt the Canadian model, where each airport is leased to a non-profit organisation comprising local and national stakeholders. These organisations would compete with one another and take full responsibility for funding the operation and development of airports, operating independently without government or political interference. The government will be able to collect a substantial amount of revenue from the airports in the form of lease payments, VAT, and other passenger-specific taxes.

The July uprising has allowed us to question those in power. Now is the time to rein in CAAB's monopolisation over the country's airports, and ensure that they are run by competent, professional, and an accountable manpower.

Erfan Chowdhury is a US-based consultant working in the aerospace and defence industry.​
 

Bangladesh - a graveyard for private airlines!
Published :
Apr 20, 2025 22:42
Updated :
Apr 20, 2025 22:42

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Lower operational expenses and streamlined regulations are two of the most critical factors that contribute to entrepreneurial growth, investment, and job creation. Recognising this, governments worldwide are seeking ways to reduce the cost of doing business and create investment-friendly environments by addressing regulatory hurdles. In the United States, this commitment is reflected in the appointment of Elon Musk-renowned for his emphasis on efficiency and innovation in the private sector-as head of the Department of Government Efficiency. In this role, Musk is actively engaged in identifying and implementing cost-saving measures across government agencies. In contrast, Bangladesh appears to be moving in the opposite direction. The cost of doing business continues to rise, driven by increasing tax burdens and tariff hikes on utility services, while regulatory measures, in most cases, remain rigid. The country's aviation sector presents a glaring example of how policy flaws can stifle the growth of promising ventures and ultimately force them out of the market. According to a Financial Express report, no fewer than eight private airlines have been forced to cease their operation over the past two decades, while the remaining three are struggling to stay afloat. One of them, NovoAir is reportedly on the verge of shutting down.

The challenges facing private airlines in sustaining operations in Bangladesh are multifaceted. While some hurdles have emerged naturally, many others have been imposed by unfavourable policy decisions. One natural challenge is the decline in domestic air travel, driven largely by the rapid expansion of road and rail connectivity. For example, the construction of the Padma Bridge has significantly reduced air travel by passengers on Dhaka-Barishal and Dhaka-Jashore routes. Still, stakeholders believe the root cause of private airlines' misery lies not in improved road connectivity, but in the country's aviation policy framework, which remains far from business-friendly.

One glaring issue is the price disparity in jet fuel-local airlines pay up to 15 per cent more than foreign carriers. In addition, regulatory roadblocks such as excessive surcharges, 30-35 per cent tax on tickets, high aeronautical, landing, and parking fees further compound the sector's woes. The annual surcharge imposed by the Civil Aviation Authority of Bangladesh (CAAB) stands at a staggering 72 per cent, compared to just 12-18 per cent in India, 2.0 per cent in Pakistan, 8.0 per cent in Singapore, and 10 per cent in Oman. Clearly, this high rate of surcharge is counterproductive. Once private airlines fall into arrears with surcharge payments, recovery becomes nearly impossible. GMG Airlines, United Airways, and Regent Airways have been forced to ground their fleets as surcharge debts accumulated, according to aviation analysts. Regent Airways, the most recent airline to cease operations, owes Tk 2.83 billion in surcharges; United Airways owes Tk 3.55 billion, and GMG Airlines Tk 3.68 billion, according to data from the CAAB. Driven by these excessive operational costs and regulatory measures, the country's aviation sector has virtually turned into a graveyard for private airlines.

A paradigm shift in policy is, therefore, crucial to fostering the growth and viability of local airlines. Firstly, the entire cost structure imposed on local airlines must be urgently revisited. Secondly, the current taxation regime and the imposition of excessive surcharges need radical reform. Thirdly, the role of the CAAB must evolve beyond that of a mere regulatory body towards one that actively facilitates the growth and development of the aviation industry. Without a transformative policy change, the market share of local airlines will continue to shrink, paving the way for foreign carriers to dominate the Bangladesh skies, capturing the economic benefits and potentially leaving local travellers with fewer choices and compelling them to pay higher fares in the long run.​
 

National interests must take centre stage
SYED FATTAHUL ALIM
Published :
Apr 20, 2025 22:37
Updated :
Apr 20, 2025 22:37

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The Civil Aviation Authority of Bangladesh (CAAB) is learnt to have taken steps to enhance cargo handling capacity of Biman. The move has been in response to India's termination of the transshipment facility for Bangladeshi exports through that country's land, sea and airports. The quick move of the interim government to increase manpower and facilitate uninterrupted cargo service by the Biman is definitely a move in the right direction. Notably, every time any Indian authority took measures that affected Bangladesh's interests in some way, the interim government, unlike the previous governments, has taken countermeasures to protect its interests. Had Biman improved its cargo capacity earlier, the present situation could not have arisen in the first place. The fact that additional staff is being employed at the Dhaka airport to enhance its cargo clearance capacity, activities are ongoing at an accelerated pace to make the airport's third terminal fully operational by October next, starting cargo handling operation by the Sylhet Osmani International Airport by April 27 and similar plans afoot for the Chattogram airport are definitely welcome developments. Along with capacity expansion, it is equally important to streamline customs clearance operation of the airports to make those simpler, faster and cheaper.

The initiatives of the Civil Aviation Authority and the sole cargo handling agent, the Biman Bangladesh Airlines, or Biman, in this direction have been long time coming. Though the present move is to create an alternative route for the Bangladeshi exports, especially the garment products to their overseas destinations, the long-term impact of it would make the Biman Bangladesh Airlines, or Biman, more active and turn it, if possible, into a profit-making concern. Of course, for the present, the main purpose is timely shipment of the country's chief foreign exchange earner, the apparel products. In fact, dependence on a third country for any vital service can never be called a good decision. Even such services can face disruptions even if the third country in question might not have done it wilfully.

When it comes to transporting goods through rail, road, sea or airport of a third country, there is always the risk of dislocations due to accidents, natural or manmade. In that case, the third country would be unintentionally responsible for the disruptions. Similar reasons may be behind, say, a vital service like power supply, or movement of foodstuffs from any single source outside Bangladesh. When it is intentional as in the present case of cessation of the transshipment arrangement for the export of certain Bangladesh-origin goods overseas, then it is obviously a cause for concern. One wonders, if and when similar other arrangements with that country might come up against challenges of a similar kind in the future. One may recall at this point the Indian ban on cattle export in 2014. Though earlier Bangladesh was dependent on Indian cattle imported or smuggled through the border to meet its regular demand for bovine meat and more so when the (cattle's) demand shot up manifold during the Muslim religious festival of Eid-ul Adha, that country slapped a ban on cattle export in 2014. The main reason for such a decision on the part of the government of India was the Hindu nationalist Bharatiya Janata Party (BJP) then came to power. Interestingly, according to a review of the US Department of Agriculture in 2016, India by then had become the world's largest beef exporter, accounting for 20 per cent of the world's beef trade. However, the 2014's ban on cattle export definitely caused severe supply shortage of cattle meat in Bangladesh for the time being. But soon the country, thanks to its resilience in the face of any kind of adversity, overcame the temporary disadvantage. A report published in a local English daily in August 2019 referring to the Bangladesh Livestock Services (BLS) said that close to 2.9 million cattle farms in that year reared 11.18 million cattle heads mainly as sacrificial animals for the Eid-ul-Adha celebrations. The thriving livestock sector created employment for half a million people in that sector. It's like as the popular phrase goes, 'one door closes and another one opens'.

The same has been the case with onion, so important for cuisine. In 2019, for instance, onion price saw an unprecedented surge in Bangladesh due to India's ban on the export of the agricultural product. A similar ban on onion export was imposed by that country in 2023.

Of course, those decisions were made with an eye to protecting its domestic market, or in the interest of the onion farmers of India. But since Bangladesh has been dependent on Indian onion, the sudden bans or raise in duties on export caused severe supply shortages of that item in Bangladesh. But whenever Bangladeshi onion farmers increased their acreage of cultivation they could produce surplus onion in the country. In any case, it all depends on the government of the time to adopt the right policy at the right time.

Understandably, some decisions by the interim government taken in national interest might have irked the government of India.

But what is important to consider under such circumstances is what has prompted the third country concerned to have taken certain decisions. If such decisions are made to protect the national interest of the country concerned, then it should not be a thorn in the side of a third country. For it is an accepted truth in international relations that every sovereign country has the right to take decisions to protect its national interest. So, nations need to be accommodative when it comes to each other's national interests. But if such interests are at cross purposes, for instances, sharing water of trans-boundary rivers between next-door neighbours like Bangladesh and India, it is advisable to settle matters through dialogue. So, unless there is any justifiable reason to be on a collision course, diplomacy is the right path to take. That requires the recognition of the fact that every country, however small it might be in terms of its size and population, has its self-respect as a sovereign nation. Many big nations often fails to accept this simple truth. As a result, tensions and sometimes conflicts arise. But sooner the close neighbours begin to realise this basic truth and start holding each other with due respect, the better it is for regional peace and growth.​
 

Leapfrogging transshipment embargo by India
Cargo air-shipment from home ports getting into gear

GULAM RABBANI
Published :
Apr 24, 2025 00:02
Updated :
Apr 24, 2025 00:02

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Air-cargo facilities are being ramped up for exporters as the government braces for getting over the challenges stemming from Indian embargo on the third-country transshipment arrangement for Bangladesh.

Officials say the Civil Aviation Authority of Bangladesh (CAAB) is considering several freight-facilitating measures that include launching dedicated cargo operations from two additional international airports in the country besides the Hazrat Shahjalal International Airport (HSIA) in Dhaka, increasing manpower to support these operations, and reducing operational costs.

Osmani International Airport in Sylhet is set to begin dedicated international cargo operations on April 27, to be followed by Shah Amanat International Airport in Chattogram a few days thereafter, CAAB Chairman Air Vice-Marshal Md Monjur Kabir Bhuiyan told The Financial Express.

A chartered flight will transport 60 tonnes of garments from Sylhet to Spain via the Middle East on the first day of freight operations at the Sylhet airport, said Boshra Islam, General Manager (Public Relations) of Biman Bangladesh Airlines, the sole ground-handler at the country's airports.

Biman has already hired an adequate number of ground-handlers and equipment to support the cargo operations at Osmani International Airport, said the official.

Although no schedule has been prepared for airfreight operations from Sylhet, Biman officials say, the existing capacity can handle up to three cargo freighters per week.

In addition to increasing the operational capacity, the government is also considering cuts in various export-related fees.

"The CAAB along with Biman Bangladesh Airlines is working to revise the current civil aviation and ground-handling tariffs to make air cargo more cost-effective," says the CAAB chairman.

The government also plans to form a taskforce led by the Ministry of Civil Aviation and Tourism and comprising all relevant stakeholders to streamline and reduce charges associated with cargo operations, he adds.

Shakil Meraj, Director (Acting) of the Cargo Department at Biman Bangladesh Airlines, informed that they export 0.21 million tonnes of cargo annually through the HSIA - an average of about 575-600 tonnes per day.

Once the third terminal becomes operational by the end of this year, the port's cargo-handling capacity is expected to double, significantly boosting Bangladesh's export-competitiveness.

Currently, the terminals 1 and 2 have a combined export-cargo area of 19,600 square metres and an annual handling capacity of 200,000 tonnes. The third terminal will add 36,000 square metres of space and an annual handling capacity of 546,000 tonnes.

At present, only five airlines - Emirates, Qatar, Turkish, Saudia and Cathay Pacific - out of 35 operate dedicated cargo flights from the HSIA. Besides, 15-17 more airlines, including Biman, transport cargoes from Dhaka airport with passenger aircraft.

Kabir Ahmed, President of Bangladesh Freight Forwarders Association (BAFFA), says that currently, 450-500 tonnes of export goods are air-shipped daily, resulting in no additional pressure on Dhaka airport for cargo transportation.

However, during peak season of export shipment from October to December, the volume increases to approximately 1,000-1,200 tonnes per day. As a result, the airports in the neighbouring countries were utilized in a detour to handle the increased volume of cargoes. The route, via Kolkata and Delhi airports, allowed Bangladeshi exporters to move goods overland to India through the Benapole-Petrapole border and then air-ship them worldwide.

It became popular since the Covid-19 pandemic, offering faster services and often at lower costs, instead of relying on the overstretched HSIA. One of the main attractions of the Indian transshipment facility was said to be lower cost.

BAFFA Director Md Kamruzzaman Ibne Amin states that cargo shipping from the Indian airports is 20-25-percent cheaper than from the airports in Bangladesh, even after including the cost of overland transport to the Indian airports.

However, on the heels of developments following the August-5th 2024 changeover in Bangladesh, India on April 8 last suspended the transshipment facility for Bangladesh's export cargo to third countries via its land borders, affecting largely the shipment of the country's main export item, readymade garments, through their airports.

The CAAB chairman hopes their latest initiatives would help reduce export costs to a reasonable level. "However, it will be difficult to compare this with India, as our neighbouring country's infrastructure and cargo-handling volume are significantly greater than ours."​
 

Aviation sector can contribute 1.5pc to GDP in five years
Says outgoing HSIA ED

FE REPORT
Published :
May 15, 2025 09:28
Updated :
May 15, 2025 09:28

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Outgoing Executive Director of Hazrat Shahjalal International Airport (HSIA) Group Captain Dr Muhammad Kamrul Islam believes that if the current progress in aviation and related sectors continues, it is possible for these industries to contribute 1.5 per cent or more to the country's GDP within the next 5 to 7 years.

"The contribution of the aviation sector to the country's GDP is currently less than 1 percent. However, significant progress has been made in the sector in recent years. If current growth trends continue, the contribution of the aviation and related sectors to the country's GDP could reach 1.5 per cent or more within the next five to seven years," he said.

He cited the increase passenger number, construction of the third terminal at Hazrat Shahjalal International Airport, the expansion of cargo handling capacity, the collaboration with over 39 international airlines, and other initiatives as key indicators of progress in the country's aviation sector.

Mr Islam was addressing a farewell and welcoming ceremony organised by the Aviation and Tourism Journalists' Forum of Bangladesh (ATJFB) at the Civil Aviation Authority of Bangladesh (CAAB) headquarters in the capital.

Incoming Executive Director of HSIA Group Captain SM Ragib Samad was also formally welcomed at the event.

The outgoing Executive Director noted introduction of accountability-based operations significantly improved passenger services at the country's busiest airport.

"We focused on ensuring accountability during my tenure. As a result, over 85 per cent of baggage is now delivered to passengers within the standard time, monitored through automated tracking systems," he said.

He further said that around 90 per cent of passenger complaints are resolved through a dedicated hotline system, helping strengthen service delivery.

He expressed optimism that the recent reduction in domestic jet fuel prices would help lower airfares, boosting the domestic aviation market.

Newly-appointed Executive Director Group Captain Samad pledged to prioritise international-standard services for both passengers and cargo handling, with transparency and professionalism.​
 

Air Astra to resume flights on Dhaka-Sylhet route

bdnews24.com
Published :
May 24, 2025 22:38
Updated :
May 24, 2025 22:38

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Ahead of Eid-ul-Azha, private airline Air Astra is set to resume flights on the Dhaka-Sylhet route.

Starting May 29, the airline will operate two daily flights between Dhaka and Sylhet.

Flights from Dhaka will depart at 7:30am and 7:30pm, while return flights from Sylhet to Dhaka will leave at 8:50am and 8:50pm.

The airlines shared the development in a media statement on Saturday.

The minimum fare for a one-way trip on this route has been set at Tk 4,699.

Air Astra CEO Imran Asif said, “Sylhet is an important destination for Air Astra. Due to aircraft shortage, we had suspended flights on that route, but they will continue regularly.”

The airline's spokesperson Sakib Hasan Shovo told bdnews24.com, “Although the flight operation was started with Eid in mind, regular flights will now continue on this route.”

Air Astra started operating domestic flights on Nov 24, 2022.

They launched flights to Sylhet on Feb 23, 2023, after launching services to Chattogram and Cox’s Bazar.

Flights on the Sylhet route were temporarily suspended earlier in May 2024.

Currently, the airline operates:

Four daily flights on the Dhaka–Cox’s Bazar–Dhaka route
Five daily flights on the Dhaka–Chattogram–Dhaka route
Three daily flights on the Syedpur route
Air Astra’s fleet consists of four ATR 72-600 aircraft.​
 

Aviation giants Airbus, Menzies seek long-time partnership with Bangladesh
BSS London
Published: 11 Jun 2025, 10: 39

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Airbus executive vice president Wouter van Wersch calls on chief adviser Muhammad Yunus at his hotel on 10 June 2025Facebook page Chief Adviser GOB

European aircraft manufacturing company Airbus and British aviation giant Menzies Aviation on Tuesday expressed their eagerness to build a long-term partnership with Bangladesh.

The two companies placed their offers as Airbus executive vice president Wouter van Wersch and Menzies Aviation executive vice president Charles Wyley called on chief adviser professor Muhammad Yunus successively in his hotel in London.


“We have identified Bangladesh as a key priority country,” van Wersch told the chief adviser, adding that the company was keen to build a partnership with Bangladesh’s national carrier, Biman Bangladesh Airlines, and make it profitable.

Van Wersch said Airbus, which supplies 800 aircraft annually, also has expertise in manufacturing helicopters and fighter jets.

The chief adviser said Bangladesh was willing to listen to all offers to modernise the Biman fleet but could not rush a decision.

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Menzies Aviation Executive Vice President Charles Wyley calls on chief adviser Muhammad Yunus at his hotel on 10 June 2025Facebook page Chief Adviser GOB

“I am very eager to understand what can be done, what should be done. So, we will listen to you. But don’t expect any decision soon. We have to look at everything in a very fresh way,” said the chief adviser.

Van Wersch said if Bangladesh decides to add Airbus to the Biman fleet, 85 per cent of the funding could be arranged through Export Credit Agency (ECA) financing.

London-based Menzies Aviation said it was willing to join the competition with others to provide ground handling and air cargo services to the third terminal of Dhaka’s Hazrat Shahjalal International Airport, using its experience of providing similar services to more than 300 airports in at least 65 countries.

“We would like to support Bangladeshi airports besides your national carrier,” Menzies executive vice president Wyley told the chief adviser.

Wyley said the company would make Dhaka a training hub for part of its 65,000 employees across the globe if it were handed the task of ground handling.

“We are a proven British company, and we would like to offer our support,” said Wyley.​
 
London-based Menzies Aviation said it was willing to join the competition with others to provide ground handling and air cargo services to the third terminal of Dhaka’s Hazrat Shahjalal International Airport, using its experience of providing similar services to more than 300 airports in at least 65 countries.

“We would like to support Bangladeshi airports besides your national carrier,” Menzies executive vice president Wyley told the chief adviser.

Wyley said the company would make Dhaka a training hub for part of its 65,000 employees across the globe if it were handed the task of ground handling.

This is a great offer IMO.

Alongwith DNATA, Menzies are certainly one of the global heavy weights in providing Air-Cargo and Ground-handling services. But I have to admit, not familiar with their actual record in different airports.

Since Dhaka 3rd Terminal is a greenfield case, they are probably more interested to start there and shape things how they want. Biman ground handling certainly needs the help. But I thought the Japanese consortium will run ground handling at the 3rd terminal.

Menzies help may be more important in the Air Cargo side then.
 

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