CAAB moves to reduce hanger cost by half

The Civil Aviation Authority of Bangladesh (CAAB) is set to reduce lease price by 50 per cent of its all the hangers, where the helicopters and other aircraft are stored and maintained safely.

In a recent meeting, the CAAB took the decision with the aim of developing Bangladesh's aviation sector and increasing revenue.

Concerned committee of the CAAB proposed a new lease price by reducing the rent rate at the meeting.

As per the decision of the meeting, the proposal has already been sent to the Ministry of Civil Aviation and Tourism (MoCAT) for its approval. Finally it would be sent to the Ministry of Finance.

As per the proposal, the base price of the lease for per square foot would be Tk 40 per month.

From July 2024 to June 2025, the cost will be Tk 41 per square foot (sq ft) each month and then it will increase 2.5 per cent per year until further decision.

The current rate of leasing per square foot space is Tk80, an amount that is a big burden for the helicopter operators of the country.

Now Bangladesh has four airlines and at least 12 helicopter operators with 32 helicopters.

All the operators have to use CAAB's hangers for maintenance and checking up their aircraft, Mofizur Rahman, secretary general of the Aviation Operators' Association of Bangladesh (AOAB) and also managing director of NOVOAIR, told the FE.

However, a number of helicopter operators have kept their business shut over the years due to high cost of hangers.

Earlier lease price was determined based on General Aviation's 15-year payback period with the aim of developing the aviation sector, increasing the contribution of the aviation sector to the GDP, and also the revenue collection of the CAAB.

Most of the hangers in the country's airports including Hazrat Shahjalal International Airport (HSIA) were built for storing big aircraft. As a result, their construction costs were also high, which also lead the authority to fix a high lease price.

However, due to high lease price, many helicopter operators are losing interest in using CAAB hangars, which is a major threat to the helicopter transportation system and other related businesses.

CAAB Chairman Air Vice Marshal Md Monjur Kabir Bhuiyan told the FE that they have taken the decision to encourage the General Aviation and others to develop their businesses in Bangladesh.

"We will not be benefited finally if the General Aviation operators close down their business.

Considering all these aspects, we have raised the issue in our board meeting and we have sent a proposal to the ministry. It will be a bearable figure for the operators," the CAAB chief added.