Local airlines seek more policy support for aviation growth | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Saturday
June 14, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SATURDAY, JUNE 14, 2025
Local airlines seek more policy support for aviation growth

Supplement

Kamran Siddiqui
07 October, 2023, 10:50 am
Last modified: 07 October, 2023, 10:54 am

Related News

  • The second runway will maximise potential of the third terminal
  • One step closer towards the dream of becoming an aviation hub
  • 'Higher cost of capital could be a cause for concern'
  • 'The next 5-7 years will see vast transformation in aviation'
  • 'Concord Group was involved in civil work for the third terminal'

Local airlines seek more policy support for aviation growth

Competing with foreign carriers will be a big challenge for local airlines in Bangladesh due to issues like high capital costs, complex air service agreements, policy deficiencies, maintenance challenges, high duties, and a shortage of skilled personnel

Kamran Siddiqui
07 October, 2023, 10:50 am
Last modified: 07 October, 2023, 10:54 am
Photo Courtesy: JICA Bangladesh
Photo Courtesy: JICA Bangladesh

The local airlines in Bangladesh hope that the inauguration of the much-anticipated third terminal in Dhaka airport will open doors to expand their fleets and increase flight frequencies to accommodate the rising number of international passengers. 

However, they express concerns about their ability to seize the growing aviation market from foreign competitors due to inadequate policy support.

The high cost of business capital, complications on rapid air service agreements with other countries, poor maintenance facilities and high duties are major reasons behind their struggling competition with foreign carriers.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Besides, the lack of sufficient number of trained human resources including pilots, engineers is a big issue for them to fulfil the industry demand as per their estimations.

"With the third terminal expansion to boost capacity, ongoing improvements in the traffic system, and enhancements in the refuelling system, it's clear that the number of foreign travellers is set to increase. However, there's a significant chance that a substantial portion of these travellers will opt for foreign airlines." Imran Asif, CEO of Air Astra, told TBS.  

Highlighting the disparity in cost of capital between Bangladesh airlines and their foreign counterparts, he emphasised, "If I take local financing (loan), the cost will be more than ten percent, twelve to thirteen percent. However, the cost of capital of foreign carriers based in the Middle East or Singapore, Malaysia is 4% or 5%."

He added, "If the cost of capital is less, then they are getting a big advantage in overall expenditure. Then it becomes challenging for Bangladeshi carriers to be competitive with international carriers."

Pointing out the intricacies of the air service agreement, he elaborated, "The air service agreement outlines the permissible frequencies or routes that can be operated between our country and another nation on a weekly basis. However, there are instances where Bangladeshi airlines aspire to expand their operations, only to find that the required frequencies are unavailable within the existing agreement. 

"In such cases, a specialised procedure must be undertaken to amend the agreement. Unfortunately, this process tends to be protracted due to bureaucratic complexities in Bangladesh. By the time this revision is completed, foreign airlines often seize the opportunity to enhance their capacity by deploying larger aircraft."

The Civil Aviation Authority of Bangladesh (CAAB) reported a notable surge in international passenger numbers, rising by 133% to 90.63 lakh in 2022 from 38.83 lakh the previous year.

Local airlines claim only a quarter of the total market share, with the remaining three-quarters attributed to the 33 foreign carriers.

These existing foreign carriers want to increase their flight frequency, and at least 12 foreign airlines are keen to operate flights in Bangladesh to capture the growing international passengers.

However, considering the poor air traffic management and operations of the 3rd terminal at Hazrat Shahjalal International Airport, the Civil Aviation Authority of Bangladesh (CAAB) has yet to permit them.

The CAAB is considering permitting a number of operation aspirant airlines after the complete inauguration of a third terminal by the end of next year.

"Even after the soft opening of the third terminal on 7th, there will still be a substantial amount of work left to be completed. If the second runway can be built as soon as possible according to the proper plan, then we will get the benefit of the third terminal soon," Mofizur Rahman, secretary general of the Aviation Operators Association of Bangladesh (AOAB) and managing director of Novo Air, told TBS.

"We will see basically how the passenger population is growing and what kind of growth is likely to happen in the future. Every year accordingly, we will increase the international flight to accommodate the additional passengers," he added.

However, he mentioned that the number of domestic passengers will decrease, as shown in Barishal and Jessore routes after the Padma bridge opening.

Boeing is forecasting air travel in Bangladesh to double in the next decade, driven by the country's growing population and expanding economy.

The aerospace company provided details about the increasing demand and capacity for air travel in Bangladesh in its Commercial Market Outlook (CMO), a yearly forecast of global and regional aeroplane demand presented in a briefing on Wednesday.

Through 2032, Bangladesh is expected to achieve an annual economic growth rate of more than 5% — double the global average — supporting annual air traffic growth at nearly 8.5% annually, according to Boeing.

Squadron Leader Lutfor Rahman, CEO of US-Bangla Airlines, said, "Aviation growth should encompass every facet. It's not a matter of someone simply introducing an aircraft and expecting immediate growth. Therefore, we need to address all aspects, ranging from infrastructure to the development of our human resources."

He went on to say, "While numerous planes may be entering the market, their maintenance will necessitate a significant number of skilled engineers. Currently, we heavily rely on foreign engineers for this task. Given this situation, it's crucial for the government to take proactive steps to cultivate a pool of engineers within the country."

Economy / Aviation

Ready for Takeoff

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Security personnel react at an impact site following a missile attack from Iran on Israel, in Tel Aviv, Israel, June 13. REUTERS/Itay Cohen
    Over 80 killed on both sides as Iran, Israel continue missile strikes
  • Vehicles were seen stuck on the Dhaka-Tangail-Jamuna Bridge highway due to a traffic jam stretching 15 kilometres on 14 June 2025. Photo: TBS
    15km traffic jam on Dhaka-Tangail-Jamuna Bridge highway as post-Eid rush continues
  • Mahmud Hasan Khan Babu. Photo: Collected
    Relationship between Bangladesh, India cordial, but largely depends on governments: BGMEA president tells ANI

MOST VIEWED

  • Energy adviser Fouzul Kabir Khan with other government officials during a visit to Sylhet gas field on 13 June 2025. Photo: TBS
    I would disconnect gas supply to every home in Dhaka if I could: Energy adviser
  • BNP Acting Chairperson Tarique Rahman and Chief Adviser  Muhammad Yunus meet at Dorchester Hotel in London, UK on 13 June 2025. Photo: CA Press Wing
    National polls possible in 2nd week of February, agree Yunus, Tarique in 'historic' London meeting
  • Rescuers work at the scene of a damaged building in the aftermath of Israeli strikes, in Tehran, Iran, June 13, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
    Tehran retaliates with 100 drones after Israel strikes Iran's nuclear facilities, kills military leaders
  • From fact-checker to fact-checked: CA Press Wing’s turn in the hot seat
    From fact-checker to fact-checked: CA Press Wing’s turn in the hot seat
  • UK Prime Minister Keir Starmer, Chief Adviser Muhammad Yunus
    Disclosure of unconfirmed Yunus-Starmer meeting shows ‘diplomatic imprudence’: Analysts
  • Flight AI 379 had landed. File Photo: Hindustan Times
    Day after Ahmedabad crash, Air India flight makes emergency landing in Thailand after bomb threat

Related News

  • The second runway will maximise potential of the third terminal
  • One step closer towards the dream of becoming an aviation hub
  • 'Higher cost of capital could be a cause for concern'
  • 'The next 5-7 years will see vast transformation in aviation'
  • 'Concord Group was involved in civil work for the third terminal'

Features

Photos: Collected

Kurtis that make a great office wear

21h | Mode
Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

2d | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

3d | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

5d | Features

More Videos from TBS

How ready is the new IRGC chief to give a befitting reply to Israel?

How ready is the new IRGC chief to give a befitting reply to Israel?

17m | TBS World
Iran says nuclear talks with US ‘meaningless’ after Israel attack

Iran says nuclear talks with US ‘meaningless’ after Israel attack

1h | TBS News Updates
CA Yunus returns home from London

CA Yunus returns home from London

1h | TBS Today
Israeli warplanes shot down; pilot detained by Iran

Israeli warplanes shot down; pilot detained by Iran

2h | TBS News Updates
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net