Air ticket fleecing: Fingers pointed at 34 firms for inflating Middle East fares
Abnormal spike in ticket fares hit migrant workers and Umrah pilgrims hardest
Highlights:
- 34 firms accused of colluding to inflate Middle East flight fares
- Artificial ticket shortage created between Dec 2024 and Feb 2025
- Ticket prices soared up to Tk1.9 lakh during the crisis
- Sales agents deny wrongdoing, claiming airlines set all ticket prices
- Commission may fine offenders up to 10% of annual turnover
- Airfares remain high despite government directives and fuel price cuts
The Bangladesh Competition Commission has accused seven general sales agents and 27 travel agencies of violating the Competition Act by colluding to artificially inflate ticket prices for Middle East-bound flights.
The commission's preliminary inquiry found evidence that these firms created an artificial ticket shortage between December 2024 and February 2025, triggering an abnormal spike in fares that hit migrant workers and Umrah pilgrims hardest.
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Formal notices have been issued to all 34 accused entities, summoning them for a hearing at the commission office today. Those failing to appear risk being tried in absentia.
Preliminary findings: Artificial crisis, inflated prices
A two-member investigation team – led by Deputy Director Dinesh Sarkar and Assistant Director Md Adnan Arif – reviewed sales records, market data, and media reports. Their findings suggest that several general sales agents and travel agencies blocked large volumes of tickets through unnamed group bookings and later resold them at double or triple the original prices.
Ticket prices from Dhaka to Jeddah, Riyadh, Medina, and Dammam reportedly surged as high as Tk1.9 lakh during the three-month period.
While the commission did not find direct evidence implicating airlines, its report noted that the sales agents' actions "created an artificial scarcity in the market".
In its 20 October notice, the commission wrote: "Preliminary evidence of violation of the Competition Act by your institution has been found, which is a punishable offence under the law."
Despite recent government directives and fuel price cuts, airfare manipulation on Middle East routes remains widespread
Who's accused
Among the general sales agents named are Air Galaxy Ltd, United Link Ltd, One World Aviation Ltd, Sky Aviation Services Ltd, I-Business Holdings Ltd, Skyjet Aviation, and AeroWing Aviation Ltd.
The 27 travel agencies include Kazi Air International, Citicom International Travel Agency, King Air Aviation, Mega International Air Service, Mother Love Air Travels, JS Travel & Tours, Travel Champ Ltd, Ilham Travel Corporation, Hajee Air Travels Ltd, Gulf Travels, Al-Ghazi Travels, and Fly Fair Travels.
A government probe committee comprising representatives from the Civil Aviation Authority and the commerce ministry also found evidence of similar irregularities.
Sales agents deny collusion
The accused general sales agents have rejected the allegations.
Ahmed Yusuf Walid, convener of the Airlines GSA Forum of Bangladesh and a representative for Saudia and Qatar Airways, told The Business Standard, "The allegation that we inflated ticket prices is completely baseless. General sales agents have no authority to fix fares. Airlines set the prices, and we simply sell tickets at those rates."
He added that the forum had earlier submitted a 20-30 page proposal to the government, outlining ways to prevent price manipulation in the future.
Nirmal Chandra Bairagi, managing director of Hajee Air Travel, told TBS, "I don't know why I have been summoned. I don't sell group tickets, nor do I deal with Umrah packages, so these allegations don't apply to me.
"Since I have been called, I will go and present my statement there."
Before government intervention, between December 2024 and February 2025, ticket prices from Dhaka to Jeddah, Riyadh, Medina, and Dammam reached as high as Tk1,90,000. Umrah pilgrims, workers, students, and expatriate families were the most affected
Commission may impose heavy fines
Inquiry committee member Md Adnan Arif said the Competition Commission could form a new investigation panel after today's hearing if further scrutiny is deemed necessary.
"If the accused are found guilty after investigation and hearings, the commission can impose fines of up to 10% of their annual turnover," he said.
Preliminary probe into ticket manipulation
According to the commission's documents, on 4 May 2025, a discussion was held in its meeting room about the abnormal increase in airfares. Based on the information and media reports presented, the commission suspected that some airlines and their sales agents were jointly creating an artificial crisis in the market.
The investigation found that general sales agents working for various international airlines – including Saudia, Qatar Airways, Salam Air, Jazeera Airways, Oman Air, and Thai Airways – along with several agents, were blocking large numbers of tickets through unnamed group bookings. Later, those tickets were sold at double or triple prices.
Before government intervention, between December 2024 and February 2025, ticket prices from Dhaka to Jeddah, Riyadh, Medina, and Dammam reached as high as Tk1,90,000. Umrah pilgrims, workers, students, and expatriate families were the most affected.
What's next?
Inquiry committee member Md Adnan Arif told TBS, "After the initial inquiry and hearing, the commission may, if it deems necessary, form another investigation committee. Based on the investigation report, another round of hearings will be held. If the accused are ultimately found guilty, the commission may impose fines or issue other directives. The commission generally has the authority to impose a fine equivalent to 10% of a company's annual turnover."
Government action yet to bring full relief
Despite recent government directives and fuel price cuts, airfare manipulation on Middle East routes remains widespread.
A 11 February circular from the civil aviation ministry mandated that all ticket bookings must include passenger names, passport numbers, and photocopies, with unissued bookings to be cancelled after three days. Yet, many foreign carriers – especially budget and non-IATA airlines – continue to flout the rules.
According to the Association of Travel Agents of Bangladesh (Atab), the directive followed allegations against some sales agents and travel agencies over ticket price manipulation.
However, many foreign carriers – particularly budget and non-IATA airlines – are not complying, keeping fares high on several routes.
Travel agents say prices have fallen slightly but remain inflated on popular Middle East routes such as Jeddah, Riyadh, Dammam, Dubai, and Doha.
Currently, a one-way ticket from Dhaka to Jeddah costs around Tk70,000, compared to just Tk25,000 for the reverse route.
Travel agents say airfares on some routes have recently dropped but not as much as expected.
Mahmodul Haque Pearu, a travel agent, said, "If the rules on bulk buying and resale were properly enforced, prices would have dropped by now. Some online platforms and big groups are still hoarding tickets and reselling them at inflated prices."
On 21 August, the ministry warned travel agencies against arbitrary fare hikes and fraudulent practices, saying stern action would be taken against violators.
In another notification, it reiterated that earlier directives to prevent unjustified price increases remain in force.
Mid-East fares still high
Currently, the most pressure remains on Middle Eastern routes – Qatar, Riyadh, Jeddah, Dammam, Medina, Dubai, and Abu Dhabi – where fares are still very high.
In contrast, fares to destinations like Malaysia and Thailand have stabilised thanks to competitive airline operations on those routes.
