High government taxes, expensive fuel, steep ground-handling charges, and congestion caused by Dhaka airport's single runway are significantly impacting airline operating costs in Bangladesh. An industry leader highlighted that these expenses are ultimately passed on to travelers through higher ticket prices.
Mohammed Abdullah Al Mamun, managing director of US-Bangla Airlines, addressed these concerns at a recent policy seminar, emphasizing disparities in taxes across different routes and the influence of charges on ticket affordability. He pointed out that passengers on various international routes pay differing amounts in taxes and duties, with some routes incurring substantially higher charges than their return legs.
Beyond taxes, Mamun underscored the role of fuel prices, ground handling, and overflight fees. For example, ground-handling fees in Kuala Lumpur are significantly lower than in Bangladesh, adding to operational costs. He also noted that congestion at Hazrat Shahjalal International Airport causes aircraft to spend additional time taxiing, increasing fuel consumption and leading to daily losses estimated at Tk 20 lakh for US-Bangla alone.
The congestion issues are compounded by the limited runway capacity. Officials from the Civil Aviation Authority of Bangladesh indicated current handling capacity at 20-22 flights hourly, with future improvements anticipated. However, space constraints and ongoing development projects hinder the construction of additional runways, challenging the sector’s expansion plans.
The civil aviation minister announced upcoming regulatory reforms that aim to involve industry stakeholders in rule-making after decades of stagnation. Mamun stressed that national aviation growth requires supportive infrastructure, fair competition, and policy support, emphasizing that the country's goal of becoming a regional aviation hub depends on strengthening domestic airlines and improving operational efficiency.
