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High cost deters aviation growth


Published : 07 Jul 2019 08:51 PM | Updated : 06 Sep 2020 11:14 AM

Despite huge potentials, the growth of aviation industry of the country is being decelerated due to various types of high service charges such as landing, parking, route navigation, airports charge in domestic and international routes. 

On the other hand domestic jet fuel cost comparing to international market is another barrier to the private aviation outgrowth. 

However, private airlines of the country has repeatedly alleged that it has become difficult for them to do business in the regional route and many of them are planning to reduce the number of flights to cope up with their expenditure mainly because of the high service charges. 

It is to be noted that the Civil Aviation Authority of Bangladesh (CAAB) is the concerned authority who collect these charges from the airlines. 

About the service charges it was learnt that CAAB charges Tk 2403 charge for ATR- 72 or Dash-8 aircraft landing and navigation in domestic flight. But the same aircraft is charged Taka 52,450 when it flies form Dhaka to Kolkata.  Besides, a travel tax (return ticket) of Taka 4618 is also charged. 

Private airlines authorities alleged that as the air distance from Dhaka to Kolkata is not that much comparing to domestic routes the airliner cannot take high ticket price. When a 70 seater aircraft operates at Dhaka-Saidpur routes, it earns (return ticket price is Tk 6000) Tk 420000 and has to pay Tax for passenger Tk 39410, for navigation and landing Tk 4806. 

When the same aircraft operates at Dhaka to Kolkata routes, it earns (return ticket Tk 12000) Tk 840000. But it has to pay Tax for passengers Tk 3,23,260, for navigation and landing Tk 87,063. Besides, the airliner also have to carry foreign stations operating cost. 

In this regard, Chief Operating Officer of Regent Air Ashish Rai Choudhury told Bangladesh Post that, “We are continuously approaching to the government to reduce the service charges of aviation industry. To sustain the industry the government should pay attention to this sector”. 

“If the government lift or reduce the aviation charges for a certain period of time, then we the private airlines will be able to sustain as in this condition it has become hard to gain profit. Reducing charges will also help to compete with the foreign airliners which will save huge foreign currencies”- he added. 

Aviation expert opined that, in this very situation if the charges are reconsidered at a flexible level then the airliners could compete with global airliners. To nourish domestic airlines governments in different countries provide subsidies. Jet fuel cost is also need to be reduced in the context of the country. 

A high official of the concerned ministry said that for providing incentive to the country’s airlines the government has plan to reduce aeronautical charges. A proposal has already been sent to the concern ministry.   

It was learnt that, already United Airways, GMG Airlines, Best Air, Arrow Bengal Airlines and Air Parabat have laid off their business in the country due to increased operating costs, fuel price hike and other charges.

Sayed Mohammad Mozammel Haque, director (operation and planning) of Bangladesh Petroliam Corporation, told Bangladesh Post that jet fuel price in Bangladesh, comparing to that of in Kolkata, is always one cent lower. This fuel price is even higher in Kathmandu and other countries.

About the fuel price difference in international and domestic routes he said, “We calculate fuel price in our local currency but when dollar price goes up, fuel price changes in our country.”