Tuesday, 3 October, 2023

Biman allegedly resorts to undue competition

  • Sun Online Desk
  • 20th June, 2022 06:03:30 PM
  • Print news

Biman Bangladesh Airlines has reduced ticket price of their flights in domestic routes by taking subsidy from the government. Terming it as ‘undue competition’, Aviation Operators Association of Bangladesh (AOAB) has raised their concern.

Secretary General of AOAB and Managing Director of NovoAir Mofizur Rahman sent a letter to Salman F Rahman, the Private Sector Industry and Investment Adviser to Honourable Prime Minister, on Sunday to look into the issue.

The letter read, “The private airlines in the country have started operating in the domestic routes under the initiative of Prime Minister Sheikh Hasina during 1996-2001. The premier gave the opportunity to establish private airlines to break the monopoly market of Bangladesh Biman. Now, private airlines are carrying around 80 percent of domestic passengers.”

“The operation of private airlines in the country was always challenging. The companies like GMG Airlines, Regent and United Airways were forced to shut after facing different drawbacks. Extreme price hike of jet fuel and operational charges enforced by the Civil Aviation Authority, Bangladesh (CAAB) have been blamed for the closure of the airlines”, the letter read.

“An important reason has always been out of the discussion. That is the ‘looting tactics’ of the national flag carrier Biman Bangladesh Airlines. At present, Biman is operating flights at different routes after reducing ticket prices by taking state subsidy. This evil tactic of Biman leads private airlines to be loss-incurring projects. Though, a total of eight private airlines invested thousands of crores of taka in the sector, they forced to shut their operation due to Biman. NovoAir and US-Bangla Airlines are crippling for the evil practice of Biman”, the letter added.

Private airlines have drawn Prime Minister’s attention through the letter to Salman F Rahman to stop the undue competition resorted by the Bangladesh Biman.