Trade
5 years ago

Six int'l carriers halt operations in one year

BD loses Tk 60m revenue weekly

Reuters file photo used for representation
Reuters file photo used for representation

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Six international airlines have suspended their operations in Bangladesh in the past one year, causing a huge revenue loss to the government.

Aviation experts said Bangladesh has lost 73 flights weekly and revenue to the tune of $0.73 million or Tk 60 million.

The carriers that withdrew their services on Dhaka and Chattogram routes are Air India, Etihad, Fly Dubai, Bangkok Airways, Thai Smile (Chittagong) and Oman Air.

Biman Bangladesh Airlines earns from ground handling and Civil Aviation Authority of Bangladesh (CAAB) from parking, navigation, security, boarding bridge and other services at the airports.

But the United Arab Emirates (UAE)-based Etihad is continuing with its cargo operation here.

It will continue to serve the country through its partner airline, the Indian Jet Airways.

Etihad has been operating for 12 years, but it reported second consecutive years of losses this year.

The airline started flights to Dhaka in May 2006 and soon became popular with long-haul travellers to the UK, the US and Canada.

When asked, Fly Dubai adviser Ashish Roy said they have decided not to operate Fly Dubai, a budget carrier and sister concern of Emirates, on the routes that Emirates uses.

He, however, told the FE that Fly Dubai may resume their operation next March as they are now shifting to the second terminal in Dubai.

Experts say Etihad has suspended operations to curtail its losses because of low air fare in Bangladesh.

The UAE flag carrier has also cut operations in some Indian stations and Sri Lanka too.

Air India has stopped operation as the government will no longer subsidise the loss-making state airline.

India has decided to privatise the carrier, they added.

About Oman Air, experts said its operation on Dhaka route was not profitable.

Another source said Etihad, Emirates and Fly Dubai have reached a consensus that the two other airlines will not operate on the routes that Emirates flies.

They made the decision to avert any unhealthy competition in the aviation business.

Aviation expert Kazi Wahidul Alam said Tk 60 million revenue loss per week is hefty for Biman and the CAAB.

The amount excludes tax and VAT. The authorities must find out why the airlines halted operations, he added.

"The policies should be more airline industry-friendly as Bangladesh is not only losing revenue, but a negative signal is also spreading among global investors," Mr Alam said.

Experts said charges, including the handling one, are quite high in Bangladesh. Fuel price is also costly.

These factors may affect the viability of the operation of any airline, they observed.

Twenty-six international carriers were in operation at Hazrat Shahjalal International Airport as of October 2018.

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