While there have been quite a few private airlines in Bangladesh, most of them have failed to survive.
A total of 13 private airlines have been approved so far in Bangladesh. However, 2 of the airlines could not even start their operations.
The country's first private airline, Aero Bengal, started its journey in 1997; even though they got permission to operate flights two years prior.
Its operations ceased within a year of its launch.
AK Air Bangladesh, GMG Airlines, Royal Bengal and Best Air were some of the local private airlines that ceased operation soon after launch.
Each of the companies has cited financial crises as the reason for shutting down.
India's private airline IndiGo started its journey in 2006. Today the number of aircraft in their fleet is 354. India is a country with a population of about 1.5 billion, and the market there is also big. So the comparison with them may not seem fair.
Vietnam has a smaller population than ours and a smaller market, yet one of the private airlines of that country, VietJet has built a fleet of 77 aircraft in just 16 years since its establishment.
In comparison, Bangladesh’s largest private airline company, US-Bangla Airlines, has a fleet comprising 24 planes.
Another player, United Airways was launched in 2007. They quickly expanded by adding aircraft to their fleet and launching flights to various destinations.
Then it became a public limited company. But eventually, that too was closed.
Regent Air started its operations in 2010, NovoAir in 2013 and US-Bangla in 2014.
Among them, NovoAir and US-Bangla have survived till now.
The latest entrant in the market, AirAstra was launched in 2022.
Number of air passengers increasing
Around 1.74 core passengers used the country's airports in 2023 and most of them were international travellers, according to the Civil Aviation Authority of Bangladesh (CAAB).
In 2022 the number was 1 crore.
And in 2019 this number was 85 lakh.
The number of air passengers from Bangladesh will double by 2031, said a CAAB.
Meanwhile, a report from the Bangladesh Bureau of Statistics states that the number of air passengers has increased by 32% in the fiscal year 2022-23 in both domestic and international routes.
Under the shadow of the high flyer
According to experts, the private airlines could have expanded their operations due to the increase in air passengers but could not do so due to a lack of cooperation from the concerned authorities.
Private airlines have to wait for months to import spare parts compared to the national flag carrier Biman Bangladesh Airlines.
They also struggle to maintain flight schedules due to the inability to keep spare parts at airports.
Apart from the designated warehouse facilities, the state-owned Biman also has hangars.
Along with regulatory loopholes, high tariffs, and high cost of jet fuel are driving private airlines out of competition.
Surcharges were one of the reasons behind the closure of many of private airlines.
Moreover, due to the high price of jet fuel, and unreasonable tax rates, especially for generators used in aircraft, various types of LCD panels, and computer displays used in cockpits, many parts have to be imported at very high prices.
15-150% tax has to be paid for some of these parts.
Many businessmen think of investing in the aviation sector as any other business.
However, the airline business is somewhat complicated.
Initially, a company can start operating flights with one or two aircraft.
Later, when the time comes for the C check, the owners sometimes fail to pay the required amount on time.
Then they have to ground the aircraft and count the losses.
Passengers also start to lose confidence in the airlines.
Why do private airlines take flight but fail to fly?
Experts say there is no denying that private-sector airlines lack efficient management but that is not the only reason for failure.
There is also a lack of cooperation between the government and the CAAB.
Many countries in the world have precedents for providing incentives in such cases.
Initially, many airlines waived parking charges, and aeronautical and non-aeronautical charges to stay competitive.
Former member of the board of directors of Biman Bangladesh Airlines and aviation expert Kazi Wahidul Alam said airline business is not easy.
“Many people think it is a profitable business. Proper flight selection and route planning will be required. As well as efficient management,” he added.
Moreover, he said when the aircraft goes through a major check, a large sum of money is required; at that time most of the companies fail to provide that financial fortitude.
Aviation expert ATM Nazrul Islam said that compared to domestic routes in Bangladesh, various charges related to parking and air travel are high.
“If these charges are not paid within the stipulated time due to various reasons, the airlines have to pay the amount with interest,” he added.
