Airfares rise on domestic routes

Private airlines on domestic routes have raised airfares after a steep increase in jet- fuel prices by the energy regulator, as the Middle East crisis fuels volatility in global oil markets.
However, the state-owned Biman Bangladesh Airlines has yet to make any decision on the issue.
Kamrul Islam, General Manager (Public Relations) at US-Bangla Airlines, told The Financial Express that the airline has only incorporated the fuel surcharge imposed by the government into its existing ticket prices.
"All other operating costs remain unchanged. We have not increased any additional charges; the adjustment has been made solely to accommodate the fuel surcharge imposed by the government," he added.
According to him, an additional Tk 1,200 has been added to one-way tickets on the Dhaka-Cox's Bazar, Dhaka-Chattogram, Dhaka-Sylhet and Dhaka-Saidpur routes, while Tk 1,000 has been added to one-way tickets on the Dhaka-Jashore and Dhaka-Rajshahi routes.
Mr Kamrul said the revised airfares would take effect from March 25. However, passengers who purchased tickets earlier will not have to pay any additional cost, even if they travel on or after that date.
Novoair passengers will now have to pay Tk 6,149 for a ticket on the Dhaka-Cox's Bazar route, up from the previous fare of Tk 5,099, according to officials.
The airline has set fares at Tk 5,849 for both the Dhaka-Chattogram and Dhaka-Sylhet routes, compared with the earlier price of Tk 4,699.
Meanwhile, the fare for the Dhaka-Saidpur route has been raised to Tk 5,949 from Tk 4,799.
Boshra Islam, General Manager (Public Relations) of Biman Bangladesh Airlines, said that the airline has yet to take a decision on the matter.
However, she said the airline's board of directors held a meeting on Wednesday to discuss the issue, including jet fuel prices, without disclosing further details.
The Bangladesh Energy Regulatory Commission (BERC) raised the price of jet fuel, also known as aviation fuel, for international flights by around 79 per cent to US$1.3216 per litre from US$0.7384, according to a press release issued on Tuesday.
For domestic flights, the price has been increased by around 80 per cent to Tk 202.29 per litre from the previous rate of Tk 112.41.
The commission said the adjustment was made in line with global market prices and average Platts rates for the period between March 5 and March 22.
"The new rates will remain in effect until further notice," the commission noted.
Meanwhile, the Aviation Operators Association of Bangladesh (AOAB) on Tuesday strongly protested the sudden hike in jet fuel prices to Tk 202.29 per litre, warning of severe financial strain and the possible suspension of domestic flights if the decision remains in force.
In a statement, the AOAB said the Bangladesh Energy Regulatory Commission's decision to increase Jet A-1 prices by nearly 80 per cent is "harmful and unjustified".
AOAB Secretary General and NOVOAIR Managing Director Mofizur Rahman questioned the rationale behind the increase.
"The relevant ministry has already confirmed that there is no shortage of fuel. Around 25 oil tankers arrived in the past 22 days, and fuel was purchased at earlier prices. Global oil prices have also declined, so such an increase is not justified," he said.
He further noted that Bangladesh's price hike far exceeds regional trends, with India and Nepal keeping prices unchanged, while Pakistan and the Maldives recorded significantly smaller increases.
"The increase in jet fuel taxes will further escalate operational costs, hindering the sustainable growth of the aviation industry. It may even lead to a complete suspension of domestic flight operations," the statement added. The association has urged the government to urgently review the decision and adopt a realistic pricing mechanism to ensure stability in the sector.

bikashju@gmail.com