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Two more private airlines to go global

March 25, 2008 00:00:00


A Z M Anas
The government Monday allowed two more private airlines to fly to lucrative international routes in a major boost to the country's fledgling aviation industry, officials said.
Best and United airlines, two private carriers which started operation last year, have been allocated slots in the Gulf countries and on the regional routes, civil aviation chief Shakeb Iqbal Khan Majlish said.
"It's major decision. It will be a huge boost for the country's private airlines. We want them to compete with foreign airlines so that they can grab some of the market shares that national carrier Biman has lost," Majlish told the Financial Express.
The latest decision allows Best Aviation to operate seven weekly international flights on the most lucrative Dhaka-Dubai route, thrice a week on Chittagong-Bahrain and two flights on Chittagong-Kuwait.
The airlines, majority owned by Kuwait-based Aqiq Aviation, has also obtained permission to operate two regional routes: Kunming in South Chinese state of Yunnan and Kolkata.
The country's biggest private carrier GMG, which in February became the first private airlines to fly to Dubai, has got slots to operate three weekly flights on Dhaka-Doha.
Officials said United Airways, Bangladesh's third private airline, has also been allowed to operate on the Gulf aviation hub of Dubai seven flights a week.
The carrier, 95 per cent owned by expatriates Bangladeshis, has also got slots to fly to regional routes of Kuala Lumpur, Kolkata and Kathmandu.
Majlish said the allocations of more slots for the private airlines were due to a change in the government policy, as it seeks to inject competition in the aviation industry.
"The government is now very liberal. We're encouraging the private sector to have its share of the growing market. But they must be ready to face fierce competition and should improve service quality," he said.
Bangladesh's air traffic grew 7.3 per cent last year, making it one of the fastest-growing aviation markets in the region.
But decades of poor performance by state-owned carrier Biman has enabled foreign carriers to snatch some 83 per cent of the market worth about 1.5 billion dollars.
The civil aviation chief said Biman has already told the authorities that it is not going to increase its international flights, owing to shortage of long-haul and mid-haul aircraft.
Although Biman last week signed a deal to buy eight new Boeing planes at a cost of US$ 1.26 billion, it would not get the supply from the US aircraft manufacturer before 2012.
Best Aviation chief M Haideruzzaman hailed the government decision, saying it would help them grow fast.
"The government decision proves that it wants a level playing field in the aviation industry. We will soon procure long haul aircraft to fly to Dubai and other long haul and regional destinations," he said.
He said Gulf is the most important market for Bangladeshi airlines as one in two people who fly abroad goes to the six Gulf countries, which employ more than 70 per cent of the country's over five million migrant workers.
World's sixth largest airline Emirates at present carries the bulk of the traffic between Dhaka and Dubai, followed by ailing Bangladesh national carrier Biman.
Emirates operates 14 jumbo flights a week and will soon add two more. There are also several other top gulf carriers operating in the route.

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