Aviation operators seek govt support as sector faces mounting challenges
“Cost pressures and regulatory hurdles have created a difficult operating environment for aviation businesses,” AOAB secretary general says
The aviation sector in Bangladesh is currently navigating a challenging period, industry leaders said at the 13th Annual General Meeting (AGM) of the Aviation Operators Association of Bangladesh (AOAB), held in Dhaka today (11 April).
The meeting was presided over by AOAB President Anjan Chowdhury, who also serves as managing director of Square Air Limited, reads a press release.
He emphasised the need for unity among stakeholders to overcome the ongoing difficulties facing the industry.
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"Aviation in Bangladesh is passing through a critical phase. It is essential for all stakeholders to work together in a coordinated manner to sustain and strengthen the sector," he said.
AOAB Secretary General and Novo Air Managing Director Mofizur Rahman highlighted several pressing challenges confronting private aviation operators. He pointed to rising jet fuel prices, high hangar rental costs, customs-related complexities, and elevated regulatory fees imposed by the Civil Aviation Authority of Bangladesh as key factors placing significant strain on the industry.
"These cost pressures and regulatory hurdles have created a difficult operating environment for aviation businesses," he noted.
The Bangladesh Energy Regulatory Commission (Berc) raised the price of jet fuel used in aircraft operations on 7 April, marking the third increase in less than a month.
Under the latest revision, the price of jet fuel for domestic flights has been increased to Tk227.08 per litre from Tk202.29 per litre, a rise of 12.26%.
For international flights, the fuel price has been raised to $1.4806 per litre from $1.3216 per litre, exempt from duties and VAT.
Earlier, on 24 March, BERC increased jet fuel prices by around 80% for domestic routes and nearly 79% for international routes in a single adjustment.
Prior to that, on 8 March, the price for domestic routes was revised from Tk95.12 per litre to Tk112.41, while international prices were raised from $0.62 to $0.7384 per litre.
Speaking to The Business Standard, Mofizur Rahman said, "With the latest adjustment, the overall rise now stands at roughly 115%-116%. In that context, a 12% hike alone may not seem very significant, but the cumulative impact is substantial."
The AGM was attended by key industry figures, including AOAB Vice Chairman-2 and US-Bangla Managing Director Abdullah Al Mamun, AOAB Treasurer Zed Mahmud Mamun, and representatives from leading aviation companies.
Participants at the meeting stressed that sustained government support will be crucial to ensuring the survival and growth of the aviation sector. They expressed hope for closer cooperation from relevant authorities, including the Ministry of Civil Aviation and Tourism, the Ministry of Finance, and regulatory bodies.
The AOAB president also welcomed the government's move to reconsider certain provisions of the Bangladesh Travel Agency Act, recently published in the official gazette, and expressed appreciation to the authorities for engaging with stakeholders on the matter.
Industry leaders concluded that coordinated policy support and reforms will be essential to help the aviation sector recover and remain competitive in the coming years.
