[🇧🇩] Aviation Industry in Bangladesh

[Saif]

Bangladesh - a graveyard for private airlines!

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 environme

thefinancialexpress.com.bd

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

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.​

 

[Saif]

National interests must take centre stage

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

thefinancialexpress.com.bd

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

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.​

 

[Saif]

Cargo air-shipment from home ports getting into gear

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

thefinancialexpress.com.bd

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

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."​

 

[Saif]

Aviation sector can contribute 1.5pc to GDP in five years

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

thefinancialexpress.com.bd

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

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.​

 

[Saif]

Air Astra to resume flights on Dhaka-Sylhet route

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:

thefinancialexpress.com.bd

Air Astra to resume flights on Dhaka-Sylhet route

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

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.​

 

[Saif]

Aviation giants Airbus, Menzies seek long-time partnership with Bangladesh

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...

en.prothomalo.com

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

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.

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.​

 

[Bilal9]

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.