New ATC tower boosts aviation safety, revenue

Bangladesh’s revenue from foreign airlines using its airspace has increased following the introduction of a modern air traffic control (ATC) tower and radar system at Hazrat Shahjalal International Airport, while authorities say the upgrade has also strengthened aviation safety.

The airport collected Tk416.91 crore in overflight fees between January and June this year, compared with Tk388.10 crore in the previous six months, from July to December 2025, according to a report from the airport executive director’s office.

The January-June revenue was around 8% higher than in the corresponding period a year earlier, according to Civil Aviation Authority of Bangladesh (CAAB) officials.

Air Commodore Md Noor-e-Alam said monthly overflight revenue had risen to around Tk69-71 crore, compared with Tk60-70 crore previously, with annual growth of about 6-8%.

“The radar system installed at a cost of Tk942 crore could recover its full cost within 16-18 months at the current rate of revenue collection,” he said.

The new system has also improved Bangladesh’s ability to manage aircraft separation based on distance, allowing more flights to be handled on the same route, he said.

“We can accommodate three to four times more traffic than before. This will also create an opportunity to increase revenue by three to four times,” Noor-e-Alam said.

The ATM-CNS system, radar and new ATC tower project was completed in December 2025. The system was installed using technology from French company Thales under a government-to-government arrangement between Bangladesh and France.

The project was initially estimated to cost around Tk730 crore, but the cost later rose to Tk942 crore. CAAB financed the project from its own resources.

The airport earned Tk805.02 crore in overflight fees from foreign airlines during the last fiscal year, according to the airport executive director’s office report.

It collected Tk388.10 crore between July and December 2025, with monthly earnings ranging from Tk44.75 crore to Tk86.63 crore. Revenue rose to Tk416.91 crore in the following six months, with monthly collections of Tk80.17 crore in January, Tk69.58 crore in February, Tk62.18 crore in March, Tk67.53 crore in April, Tk70.48 crore in May and Tk67 crore in June.

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CAAB officials said surveillance over the Bay of Bengal had also improved following the integration of the Chattogram radar with the new system.

“Previously, a large area over the Bay of Bengal was not adequately covered by our radar. With the integration of the Chattogram radar, we can now provide radar coverage much farther to the south,” Noor-e-Alam said.

Additional technologies are being used in areas beyond direct radar coverage, creating further opportunities to monitor aircraft using routes over the Bay of Bengal and collect overflight charges, he said.

The new system can monitor airspace extending around 350 nautical miles from Dhaka, according to CAAB officials.

The improved surveillance and traffic-management capability is expected to enable Bangladesh to handle more aircraft while maintaining safe separation between flights.

However, Noor-e-Alam said further procedures, including approval from the International Civil Aviation Organisation (ICAO), would be required before Bangladesh could fully utilise the increased traffic-handling capacity.

Long-delayed upgrade

The initiative to replace the radar system at Hazrat Shahjalal International Airport, which had been in service since 1980, was launched in 2005.

A proposal to install new radar systems under a public-private partnership (PPP) arrangement was approved in 2013. Four companies later participated in the tender process, but the initiative was eventually cancelled following controversies surrounding the selected contractor.

The government subsequently opted for a government-to-government arrangement with France.

The Cabinet Committee on Government Purchase approved the new CNS-ATM and radar project in June 2021, with an estimated cost of about Tk730 crore. CAAB was to finance the project from its own resources.

CAAB signed an agreement with French company Thales in October 2021 to implement the project.

The new ATC tower and radar system were completed in December 2025 and formally inaugurated on 20 April this year.

“The new system has ushered in a technology-driven era in the management of the country’s airspace. This modern air traffic management system will make air travel safer and more efficient while bringing it in line with international standards. It will also create new opportunities for integrated airspace management through regional cooperation and information sharing,” Civil Aviation and Tourism Minister M Rashiduzzaman Millat said while addressing the inaugural ceremony.

The minister also stressed the importance of continuous training to develop skilled human resources for the aviation sector.

He said continued government initiatives were advancing efforts to transform Hazrat Shahjalal International Airport into a global aviation hub.

A CAAB official alleged that the project had remained pending for years under the previous Awami League government to protect the interests of certain quarters.

“Had the project been implemented earlier, our revenue could have increased further,” he said.