bdnews24.com :
Six of the ten private airlines in Bangladesh have closed shop in the past 17 years.
United Airways and Regent Air, two of the four airlines that survived, are flying on international routes. But they are bogged down by mounting debts and mismanagement.
United shut down its operations after Managing Director Tasbirul Ahmed Chowdhury resigned last Monday. Flights resumed after Tasbir was brought back a few days later.
But United’s fate hangs in uncertainity-it owes Tk 840 million to the Civil Aviation Authority of Bangladesh (CAAB).
Regent Airways is also reeling under a debt burden of Tk 240 million.
Aero Bengal, Air Parabat, Royal Bengal, Air Bangladesh, GMG airlines and Best Air have all shut down. GMG was the only one of them flying on international routes.
Two other carriers that surived – Novo Air and US-Bangla Airlines – only fly domestic routes.
A carrier must fly domestic routes for at least one year before starting international operations, according to CAAB rules.
A former GMG Airlines official, currently employed with another airline, told bdnews24.com, ‘GMG was doing fine after it started. But it could not run the business properly because of poor planning and other problems.’
United Airways has been given the chance to clear its debt TK 840 million in three instalments over the next three years, CAAB Director for Flight safety and regulation SM Najmul Anam said.
The CAAB has grounded six of the 11 aircraft of United Air’s fleet for C-check and they can fly only when C-check is finished.
An aircraft needs certain amount of maintenance of its engine, landing gear and other parts after they cross the initial expiry period. One of these maintenances was called C – check.
One of the four aircraft of Regent Air was also grounded for C- check.
Regent is negotiating with CAAB about how they could clear their debt, the airline’s Manager for Brand and Communication SM Riazul Islam said.
According to the Expatriates’ Welfare and Overseas Employment Ministry, about 10 million Bangladeshis are working abroad. Almost all of them fly to their destinations.
However, the airlines say absence of bank loan, high government taxes and fuel and maintenance costs was making it difficult to offer tickets at prices good enough to attract passengers.
Regent officer Riazul said, ‘Most of the banks don’t have a clear idea about the business of aviation, so they don’t want to clear the loan.’
‘Besides government impose different taxes. As for example, a person has to pay TK 27,000 to travel from Dhaka to Bangkok. Government get five thousand as tax. Besides, we have to pay other aeronautical and non aeronautical charges too.’
‘Even after having 70 percent load factor in Bangladesh, we have to suffer problems.’ he added.
In aviation business 60 percent load factor is considered profitable elsewhere in the world.
The former director on board of Bangladesh Biman and aviation expert Kazi Wahedul Alam blames it all on a ‘lack of vision’ as 17 other international airlines operating in Bangladesh are raking in profit.
He told bdnews24.com, ‘Those who are involved with this business, most of them don’t understand it well. So there strategic plan does not work properly.’
‘If we analyse the airlines that have closed down, we find they failed to balance income with expenditure. Most of them have no idea about route and aircraft management.
