Apart from a terrible human tragedy in Monday's Nepal plane crash, sector-insiders are worried that Bangladesh's booming aviation industry might receive an immediate blow like confidence crisis.
A US-Bangla airlines plane crash-landed in the capital of the Himalayan country and exploded into an infernal blaze, leaving at least 51 people dead-some charged beyond recognition.
Market players and experts said the deadly event of manmade disaster at a time when the country's Tk 20 billion aviation sector has been witnessing phenomenal growth over the years in terms of both air traffic and business.
Terming the accident another blow to the business of the local private airliners, they said the operators have been struggling to remain afloat on the international routes competing with top global players as they have to spend more in respect of fuel consumption, landing, parking and other charges.
After bitter experience of many private airliners in the 90s and the 2000s, the industry, having registered a nearly 18 per cent growth in 2017, began booming from 2013 thanks to the changes in people's spending habit with the blessing of increased per-capita income.
Some global and local airliners are operating business in Bangladesh with Qatar-based Emirates topping the list, followed by Saudi Airlines and national flag-carrier Biman Bangladesh Airlines. Private players joined in the business in 1992. Since then, many companies like GMG, United and Best Air have invested in the industry but failed to sustain for reasons that include inadequate passengers.
There are four operators on the domestic market, and the US-Bangla airlines accounted for major market share followed by Novoair, Regent and Biman. In terms of existing fleets, Biman has a total of 13 carriers in service, followed by Regent 8, US-Bangla 7 and Novoair five.
Though private airliners initially concentrated on domestic market, the airlines started spreading their wings beyond borders operating flights to South Asian and Middle-Eastern countries. Now, some of them have decided to expand their service to China because of growing demand.
Contacted, Senior Manager of Novoair AKM Mahfuzul Alam said the tragic plane crash might have an impact on the industry but, hopefully, it would not prolong because air traffic still remains the safest mode of transport.
"Comfortability and fastest modes are the options that will attract the passengers to choose air traffic," said the official of Novoair that accounts for nearly 25 per cent of domestic market share.
After gaining three times in terms of number of passengers and flight operations since its journey in 2013, when around 0.5 million people traveled by air annually, the private airline already expanded their operations to Kolkata in India.
Talking to the FE, President of the Association of Travel Agents of Bangladesh (ATAB) Manzur Morshed Mahbub said three sections of people - tourists, businesspeople and labourers - helped the industry grow at a faster pace.
He said some 2.0 million people from Bangladesh, on average, travel by airplane per year and the sector witnessed over 18 per cent growth last year, which was "remarkable".
"Of course the accident will have a negative impact on the industry. Lack of confidence might be created in the local operators in an immediate response. But I think it will not prolong for a longer period because of quality service," he said.
The private carrier also flies to eight international destinations, including Nepal and India in the region. Other destinations are Muscat, Oman, Kolkata, India, Kuala Lumpur, Malaysia, Singapore, Bangkok, Thailand, Doha, Qatar and Guangzhou in China.
Kazi Wahidul Alam, an aviation-industry consultant and editor of the fortnightly Bangladesh Monitor, said the sector came to the track of growth after 2010 because of significant rise in people's incomes.
He said the market is largely dominated by the private sector and continues to grow by successfully overcoming challenges like lack of high-skilled manpower and limited access to finance.
Suggesting handling the situation in a planned and coordinated way, he said all sections of people, including the government, should come up and ensure compensation to the people affected by the tragedy.
"They (operators) should operate flights as usual without any disruptions. Otherwise, it will have a negative impact on the sector," Mr Alam said.
Despite having huge potential in the industry, Bangladesh lags behind the fellow Asian nations. Each year, Singapore Airlines carries more passengers than its total population. Thai Airways and a good number of Indian and Chinese airlines are also dominating the air-travel business.
It is highly a capital-intensive sector. In addition to the cost of airplanes (from US$80.6-US$400 million if bought and US$0.015-US$1.375 million if leased), each airline company would have to undertake major spending on employment, training, expensive equipment and facilities.
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