Passenger traffic on international routes from Hazrat Shahjalal International Airport (HSIA) in Dhaka is rising steadily but domestic airlines' market share stays stymied at a modest 40 per cent amid a descent.
The closure of several airlines over the past decades due to inadequate infrastructure and regulatory support, coupled with a shortage of aircraft among existing carriers, including Biman Bangladesh Airlines, the national flag carrier, has incapacitated local airlines from capitalising on strong passenger demand or securing a significant share of the market.
As such, Bangladesh's aviation sector is steadily losing competitiveness to foreign airlines, resulting in reduced industry growth on the one hand and a substantial outflow of foreign currencies on the other.
According to data from the Civil Aviation Authority of Bangladesh (CAAB), the total number of international passengers using HSIA in 2025 stood at approximately 11.23 million. Of them, the country's two leading domestic carriers --Biman Bangladesh Airlines and US-Bangla Airlines-- transported only 4.59 million passengers, accounting for roughly 40 per cent of the market.
The remaining 60 per cent were carried by 38 foreign airlines operating regular services from the airport.
A similar pattern was observed in 2024, when a total of 10.78 million international passengers traveled through HSIA. During that period, the two domestic airlines operating on international routes carried 4.36 million passengers. However, domestic airlines accounted for an even smaller share of the international passengers in 2023, representing just 34.63 per cent of the total.
Industry insiders say local airlines continue to struggle with sustainability due to policy gaps and rising costs, despite gradual improvements in Bangladesh's aviation infrastructure over the years.
According to industry insiders, local airlines continue to struggle with sustainability, largely due to policy shortcomings and rising costs, despite some infrastructural development.
An unfavourable business environment, along with high operating costs, soaring jet-fuel prices, and various surcharges, has forced at least eight local airlines that entered the market over the past two decades to shut down, resulting in Bangladesh losing market share to foreign carriers.
Officials note that Biman Bangladesh Airlines once alone controlled nearly 40 per cent of the market. However, the rapid expansion of foreign carriers, combined with Biman's limited fleet size, has led to a gradual erosion of its market share.
Kazi Wahidul Alam, an aviation expert and also a former board member of Biman, told The Financial Express that domestic airlines, particularly Biman, must expand capacity to remain competitive.
He points out that despite being a commercial entity, Biman lacks the autonomy to make key business decisions. According to him, running a commercial organisation "under bureaucratic control is ineffective and risks pushing the airline towards gradual stagnation".
The national carrier's fleet now has just 19 aircraft, after returning two leased planes last year when their contracts expired. The fleet includes four Boeing 777-300 ER, four Boeing 787-8, two Boeing 787-9, four Boeing 737 and five Dash 8-400 aircraft.
Biman currently flies to 22 international destinations and plans to expand its network to Male, Bahrain, Sydney and New York, all of which are considered potential profitable international routes.
In February and March 2021, two Dash-8 aircraft manufactured in Canada joined the Biman fleet as its latest purchases. Since then, Biman authorities have failed to expand its fleet for indecision as to whether to purchase aircraft from Europe or the United States.
In contrast, private carriers are pushing ahead with plans to expand their international operations in a bid to increase their market share, led by US-Bangla Airlines.
Md Kamrul Islam, General Manager (Public Relations) of US-Bangla Airlines, says that the airline currently operates flights on 14 international routes across 10 countries. "Now the carrier is looking ahead to further expansion, with plans to launch services to Madinah, Dammam, London, Rome, and Manchester by 2026."
Beyond that, the airline aims to introduce long-haul routes to Toronto, New York, and Sydney by 2028. To support this growth, US-Bangla Airlines is also in the process of leasing four wide-body aircraft.
Private airline Novoair, presently operating exclusively on domestic routes, has planned to commence international operations immediately, according to its top officials.
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