Airline Fares Driven Up by Taxes, Fuel Costs, and Limited Runway Capacity at Dhaka Airport

Airline Fares Driven Up by Taxes, Fuel Costs, and Limited Runway Capacity at Dhaka Airport

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27 days ago

High government taxes, expensive fuel, steep ground-handling charges, and congestion caused by Dhaka airport’s single runway are pushing up airlines’ operating costs, expenses that ultimately land on passengers’ ticket prices, an airline managing director said on Saturday.

Mohammed Abdullah Al Mamun, managing director of US-Bangla Group and US-Bangla Airlines, made the observations at the policy conclave “World-Class Aviation for Bangladesh’s Economic Advancement”, organised by Bonik Barta at a conference centre in Dhaka.

He cited that US-Bangla alone loses around Tk 20 lakh a day due to the single-runway constraint, while congestion causes delays as aircraft queue for landing and departure. The congestion also affects punctuality, with aircraft left waiting in queues for both landing and departure, he said.

Mamun explained that the significant disparity in costs impacts ticket prices on international routes, such as Dhaka to Kuala Lumpur, where passengers pay around Tk 9,890 in government tax and excise duty for the Dhaka leg, compared to Tk 2,000 for the return trip. Similar disparities are observed on routes to Singapore, Muscat, and Dubai. He noted that airlines factor these charges into their ticket pricing.

Additionally, Mamun highlighted that aviation fuel in Bangladesh is more expensive than in Kolkata and that ground-handling charges there are much higher compared to Malaysia. He emphasized that these factors, along with landing, overflying, parking charges, and the constraints of a single runway—leading to aircraft taxiing delays and excess fuel consumption—compound operational costs.

He pointed out that the government’s plan to develop a third runway has not yet materialized due to land and development issues, and that domestic airline operators were not properly consulted about facilities at the new terminal. Mamun stressed that Bangladesh’s ambition to become an aviation hub depends heavily on support for local airlines, which include US-Bangla, and their access to efficient infrastructure.

Official figures indicate that Hazrat Shahjalal International Airport can currently handle around 20-22 flights per hour, with potential for expansion. Civil aviation authorities are considering a dependent runway, but land constraints slow progress. Meanwhile, civil aviation officials and the minister expressed commitment to revising civil aviation regulations after 42 years and involving industry stakeholders in the process.

Airspace Times Team

Airspace Times Team

Aviation news desk

Published: 13 Sep 2026

Source: thedailystar.net

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