Six airline operators owe CAAB Tk 77.22b

Authority decides not to renew private airlines' licences if dues not cleared


GULAM RABBANI | Published: January 21, 2025 23:00:57


Six airline operators owe CAAB Tk 77.22b

Six operational and defunct airlines owed the Civil Aviation Authority of Bangladesh (CAAB) Tk 77.22 billion in cumulative debts until last November, risking their licence renewal.
The CAAB coordination meeting held on December 18 last decided to issue reminder letters to the airlines regularly to collect the dues, according to the minutes of the monthly coordination meeting of the state-run organisation.
It also decided to sign 19 non-aeronautical contracts with Biman. The national flag-carrier "is taking various advantages from CAAB without signing any contract", the meeting was told.
Besides, the meeting decided private airlines' licences would not be renewed if they fail to pay the dues.
Of the overdue amount, about Tk 57.93 billion is surcharge, while the remainder original debt, including VAT and tax, according to the document.
If an airline fails to pay charges to CAAB on time, it has to bear an additional 72-percent surcharge per annum.


Sources at various airlines have said many operators are unable to pay their dues because of the accumulated surcharge, and many even have gone bankrupt under the burden of huge debts.
Four of the airlines are operating at present - the national flag-carrier Biman Bangladesh, Novoair, US-Bangla, and Air Astra.
Regent Airways, United Airways, and GMG Airlines closed their business in the last few years.
Mofizur Rahman, Aviation Operators Association of Bangladesh (AOAB) secretary-general and Novoair managing director, told The Financial Express they are "constantly demanding a reasonable surcharge rate be set".
However, the authorities concerned are not heeding that, he said.
The AOAB leader further said the surcharge rate in other countries, including neighbouring India, is not more than 8-10 per cent yearly. Until November 2024, US-Bangla owed CAAB Tk 1.72 billion. Of this, the original debt is Tk 1.40 billion and Tk 90.9 million is surcharge imposed on the debt. The operator also incurred Tk 225.4 million as unpaid VAT and income tax.
Novoair owed CAAB Tk 292.2 million-Tk 220.9 million original debt and Tk 30.7 million as surcharge imposed on the debt. The operator has a debt of Tk 40.60 million as VAT.
Regent Airways owed Tk 4.07 billion. Of this, the original debt is Tk 1.41 billion and Tk 2.37 billion is surcharge imposed on the debt. The operator also has a debt of Tk 293.2 million as VAT and income tax.
United Airways owed CAAB Tk 3.88 billion. Of the amount, the original debt is Tk 567.6 million and Tk 3.26 billion is surcharge. The operator also has a debt of Tk 56.52 million as unpaid VAT and income tax.
GMG Airlines owed the Authority Tk 3.96 billion that breaks down as Tk 565.0 million as original debt and surcharge worth Tk 3.38 billion. It also has debts of Tk 14.6 million as VAT and income tax.
Biman owed Tk 63.27 billion. Of this, the original debt is Tk 9.19 billion, while the remaining Tk 54.08 billion is surcharge, VAT, and income tax.
Air Astra flies clean with no dues.
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