Global aviation giants eye Bangladesh's airport transformation

Bangladesh's aviation sector has reached a significant milestone as five of the world's leading airport service providers compete to operate at Hazrat Shahjalal International Airport's (HSIA) Third Terminal, reflecting growing global confidence in the country's ambition to emerge as a regional aviation hub.

For the first time since Bangladesh's independence, internationally renowned airport service companies are seeking entry into the country's ground handling market following the Civil Aviation Authority of Bangladesh's (CAAB) decision to appoint a second passenger ground handling operator at the Third Terminal.

A senior CAAB official involved in the negotiations confirmed to BSS here recently that a second operator would be appointed for passenger-related ground services, while cargo handling at the new terminal would remain exclusively under Biman Bangladesh Airlines.

"The second handler will be limited to passenger and ground handling activities. Cargo handling will remain solely with Biman," the official said.

Industry experts viewed the development as a strong endorsement of Bangladesh's expanding aviation industry, driven by sustained passenger growth, major infrastructure investments and increasing international connectivity.

Among the contenders are- UK-based Menzies Aviation, Switzerland's Swissport, Türkiye's Çelebi Aviation Holding, UAE-based data, part of the Emirates Group, and Singapore's SATS, all globally recognised airport service providers.

Former CAAB Chairman Air Vice-Marshal (retd.) Muhammad Mafidur Rahman said Bangladesh had rarely attracted simultaneous interest from so many international aviation companies, highlighting the country's growing strategic importance in South Asian aviation.

Diplomatic interest underscores confidence

Over recent months, ambassadors from the United Kingdom, Switzerland, Türkiye and the United Arab Emirates have separately discussed their respective companies' interests with Bangladesh's aviation leadership.

"Such diplomatic engagement reflects the commercial importance attached to Bangladesh's expanding aviation market and the confidence international investors have in the country's long-term growth prospects," Rahman said.

A landmark reform

The Third Terminal represents a major policy shift as it introduces competition in passenger ground handling after decades of Biman Bangladesh Airlines' exclusive responsibility.

Ground handling includes aircraft servicing, baggage management, passenger check-in, ramp operations and aircraft turnaround services that directly influence operational efficiency and passenger experience.

Foreign airlines have long advocated greater competition, arguing that it would improve service quality, reduce turnaround times and align Bangladesh with international standards.

Managing Director of Novoair and Secretary General of the Airline Operators Association of Bangladesh (AOAB) Mofizur Rahman welcomed the decision.

"I think the issue deserves careful consideration, even if it is addressed at a later stage. For now, however, I am happy that competition is at least being introduced in passenger handling services," he said.

Noted aviation entrepreneur and Chairman of TAS Aviation Group K M Mozibul Hoque also described the global interest as a positive sign.

"Cargo villages and ground handling operations both should be managed by internationally experienced operators," he said.

"Ownership may remain with the government, but operations should be entrusted to proven global companies. Professional operators can improve efficiency, safety, compliance and service quality while transferring knowledge to local manpower," he added. 

While welcoming competition in passenger handling, industry stakeholders questioned the decision to retain Biman as the sole cargo handler at the Third Terminal's automated Cargo Village.

"There are sufficient questions about whether Biman's cargo handling is up to international standards. There are serious concerns regarding both capability and integrity," Mofizur Rahman said.

Former CAAB Chairman Mafidur Rahman also suggested that international expertise could help maximise the benefits of the terminal's advanced cargo systems.

"The equipment installed is state-of-the-art and requires experienced operators," he said.

"It would have been better if an experienced international operator had worked alongside Biman initially so that knowledge could be transferred before moving to a fully local operation."

However, he remained optimistic, saying: "There is nothing to be disappointed about it. If expert professionals are utilised properly, the aviation sector will gain new dynamism."

Biman expresses confidence

General Manager (Public Relations) Boshra Islam told BSS that Biman has already procured the required ground handling equipment and recruited more than 1,000 additional personnel for the Third Terminal.

"We are ready to conduct passenger and cargo handling operations at the Third Terminal," she said.

She added that Biman is working with the Japanese consortium on cargo handling arrangements and has not yet received any official communication regarding the appointment of a second passenger ground handler.

A Japanese consortium comprising Japan Airport Terminal Company, Sumitomo Corporation, Nippon Koei and Narita International Airport Corporation is set to assume operation and maintenance responsibilities for HSIA's Third Terminal after the signing of the final agreement.