logo

Airlines reduce fares, migrant workers most benefitted

Badrul Ahsan | Tuesday, 28 January 2014


Bangladeshi passengers, largely overseas workers, are being benefited as most of the Dhaka-based airlines have reduced airfares by about 20 to 25 per cent due mainly to sluggish market.
The airfares for the Gulf states and some Asian countries were reduced much as the employment opportunities in those areas for Bangladeshi workers have declined sharply, sources said.
Besides, operation of low- cost carriers from the country also forced costly ones to reduce their ticket fare.
For example, a one-way ticket to Muscat from Dhaka for economic class was around Tk 30,000 a few months back, which is now about Tk 23,000 for per adult passenger.
"The price of Dhaka-Singapore-Dhaka ticket of Biman Bangladesh Airlines declined to about Tk 43,000 from Tk 58,000 over the last couple of months," Sarwar Hossain, managing director of Challenger Travels and Tours Ltd in the city, told the FE Monday.
"Besides, fare of some other low- cost carriers on the same route ranges between Tk 18,000 and Tk 25,000 which was not less than Tk 23,000 six months back," he added.
"This situation has emerged as the overseas employment opportunities for the Bangladeshi people fell remarkably in the recent months," Hossain added.
The airlines business is passing through a crucial time as a small number of Bangladeshi passengers travel different countries. So, the authorities have cut airfares to continue the business, sources at different airlines office said.
While talking to the FE, a sales promotion manager of Biman Bangladesh Airlines said, "Flight business depends on the numbers of passengers. But, now most of the airlines are getting very raw deals in this regard."
He also added that operation of low- cost carriers from the country also thrown the bigger ones like Singapore Airlines, Malaysian Airlines, Emirates and others into a stiff competition.  
"Non-resident Bangladeshis mostly prefer cost effective travelling which put another damper to the sluggish air business, mostly to that of costly airlines."
According to him, low-cost carriers like United Airways, Malinda, and others have recently increased their services to different routes from Dhaka at a much lower charge than that of Biman Bangladesh Airlines, Singapore Airlines, Emirates and others.
However, in the recent times, some important countries such as Saudi Arabia, Dubai, Iran and Qatar have reduced recruitment of overseas employees from different countries including Bangladesh. So, passenger carrying to those destinations has fallen, sector insiders informed.
 A sales girl of a private airline in Dhaka preferring anonymity said big airlines had to cut their airfares in the recent times as some low- cost carriers have started their operation from Bangladesh.
She also claimed that the low- cost airlines have created an unhealthy competition within the airlines business in Bangladesh.
However, many of the airlines business insiders expressed their hope that the scenario might improve because of present political stability.
"We strongly believe that the government would not stay idle. The ministry concerned would initiate negotiation with the Gulf countries so that they start recruitment from Bangladesh," a source opined.
However, according to Bureau of Manpower, Employment and Training (BMET), manpower recruitment by most of the Gulf countries from Bangladesh declined drastically during the last calendar year (2013).
The BMET data showed, United Arab Emirates recruited only 14,241 Bangladeshis in 2013 against recruitment of 215,452 a year earlier, Saudi Arabia recruited 12,654 Bangladeshis against recruitment of 21,232 people during the same time.
Besides, Oman recruited 1,34,028 Bangladeshi workers in 2013 against recruitment of 1,70,326 a year earlier and Libya recruited 7,175 Bangladeshi workers against recruitment of 14,975 in the corresponding period.