Closure of BA flights to give negative signals
Thursday, 27 November 2008
Shahiduzzaman Khan
The decision of the British Airways (BA) to close its flight operations to, and from, Dhaka has evoked yet no response, official or otherwise, from the Bangladesh side. When the number of country's air-borne passengers has been on a steady rise as borne out by growing demands for passengers' seats, why BA is folding up its operations to, and from, Bangladesh remains a big question.
A report published in the FE last week noted that the BA's planned closure of Bangladesh operations in March next will negatively impact the image of the country. The presence of a big airline like BA reflects the inner strength of an economy. But its pullout is certainly not a positive development.
Earlier, some other foreign airlines had closed their operations to, and from, Bangladesh.
Back in early 1990s, KLM, now merged with Air France and known as Air France-KLM, was the first foreign airliner to pull out its Dhaka operations after continuing services for only one year. The Czechoslovakian airlines later withdrew after operating for just a month. Germany's Lufthansa and American carrier United Airlines this year also scrapped the sales services agreement with local travel agencies.
Related business insiders say the governmental plan of action to protect Biman Bangladesh Airlines is one of the reasons behind the closure of operations of foreign airlines in Bangladesh. The government had taken up a number of attempts to salvage the national airline -- Biman. But all efforts to buoy Biman went in vain. Even after corporatisation of Biman, the national airline has been failing to make its presence felt in international aviation arena. In order to raise its fleet, Biman has ordered to buy some planes from MacDonald's, but those have not yet arrived.
Now the question is: Why are foreign airlines like BA leaving Bangladesh when there is a growing demand for more flights to carry increased number of passengers bound to, and from, Bangladesh? In recent days, number of outgoing passengers has risen considerably with thousands of job-seekers going abroad regularly. Inward traffic has also increased markedly. Previously, a traveller can buy instant ticket for his or her journey abroad. Now, it requires one to three months after advance-booking for tickets to travel abroad. Many job-seekers cannot travel to their destinations for lack of adequate seats in the flights, after their visa dates expire. Rush for tickets demonstrates that Bangladesh needs more passenger flights to operate aviation business here.
Against this backdrop, BA's decision to close Bangladesh operations is otherwise inexplicable. Its route withdrawal (Dhaka-London-Dhaka) is going to be a great loss for the local air travel business. Association of Travel Agencies in Bangladesh (ATAB) sources say no western airline will operate from, and to, Dhaka after the pull-out of British Airways. Passengers will greatly suffer. Except Biman, there will be no direct air services between the two capitals -- Dhaka and London.
The airline's announcement to cut its Heathrow services to Dhaka comes at a time when the growth of the local aviation business is close to 8.0 per cent a year, making Bangladesh one of the fast-growing markets in the region. BA has been operating three passenger flights a week between Dhaka and London. But the plan to withdraw the route will leave the state-owned carrier Biman to fly passengers between Dhaka and London through its five weekly flights. The United Kingdom is home to over 0.5 million British-Bangladeshis. Other foreign airlines operate on the route via connecting flights to, and from, Heathrow airport, Europe's busiest airport.
Currently, 20 foreign airlines are operating in Bangladesh, which altogether control as much as 80 per cent market share. An estimated 3.45 million air-travellers moved in, and out of, Bangladesh last year, and of them, BA carried 63,402 passengers.
BA cited the reasons of non-profitability for folding up its operations Bangladesh. Insiders in aviation business say the trouble with BA's operations in Bangladesh erupted two years ago when ATAB got annoyed with the airline for drastic reduction of their sales commission. The row over the commission-cut led to the boycott of the carrier by ATAB, a move the BA believed had put a damper on the carrier's profitability on the route since then. Even though the ATAB lifted the boycott last August, the airline stated that it suffered substantial losses for the prolonged boycott.
Undoubtedly, passengers destined to the United States, North and South Americas will face the main hazard, because of BA's withdrawal of Heathrow services. Although BA's Dhaka-London route relies heavily on diplomats, corporate customers, and personnel of donor agencies, its withdrawal would land the North-America-bound passengers in trouble, suffering from longer travel time and higher fares. After BA's pull-out, passengers will have fewer seats. It may take 14-20 hours, instead of present six to seven hours to travel on the route. Other airlines will also charge more, although there will be no direct flights. Half-a-million Bangladeshi diaspora living in the UK would also suffer due to the route withdrawal.
Most interestingly, the ATAB which was against BA's operation in Bangladesh and boycotted it, now wants that the BA should stay in Bangladesh. It urged the BA authorities to reconsider the decision about suspension of its Dhaka-London flights. All concerned do strongly feel that the government of Bangladesh (GoB) should immediately take an initiative to convince the BA about the need for reconsidering its planned withdrawal of flights to, and from, Dhaka. The GoB should also invite other famous airlines also to start business operations in Bangladesh in order to cope with the rising passenger demand for air-borne seats.
szkhan@thefinancialexpress-bd.com
The decision of the British Airways (BA) to close its flight operations to, and from, Dhaka has evoked yet no response, official or otherwise, from the Bangladesh side. When the number of country's air-borne passengers has been on a steady rise as borne out by growing demands for passengers' seats, why BA is folding up its operations to, and from, Bangladesh remains a big question.
A report published in the FE last week noted that the BA's planned closure of Bangladesh operations in March next will negatively impact the image of the country. The presence of a big airline like BA reflects the inner strength of an economy. But its pullout is certainly not a positive development.
Earlier, some other foreign airlines had closed their operations to, and from, Bangladesh.
Back in early 1990s, KLM, now merged with Air France and known as Air France-KLM, was the first foreign airliner to pull out its Dhaka operations after continuing services for only one year. The Czechoslovakian airlines later withdrew after operating for just a month. Germany's Lufthansa and American carrier United Airlines this year also scrapped the sales services agreement with local travel agencies.
Related business insiders say the governmental plan of action to protect Biman Bangladesh Airlines is one of the reasons behind the closure of operations of foreign airlines in Bangladesh. The government had taken up a number of attempts to salvage the national airline -- Biman. But all efforts to buoy Biman went in vain. Even after corporatisation of Biman, the national airline has been failing to make its presence felt in international aviation arena. In order to raise its fleet, Biman has ordered to buy some planes from MacDonald's, but those have not yet arrived.
Now the question is: Why are foreign airlines like BA leaving Bangladesh when there is a growing demand for more flights to carry increased number of passengers bound to, and from, Bangladesh? In recent days, number of outgoing passengers has risen considerably with thousands of job-seekers going abroad regularly. Inward traffic has also increased markedly. Previously, a traveller can buy instant ticket for his or her journey abroad. Now, it requires one to three months after advance-booking for tickets to travel abroad. Many job-seekers cannot travel to their destinations for lack of adequate seats in the flights, after their visa dates expire. Rush for tickets demonstrates that Bangladesh needs more passenger flights to operate aviation business here.
Against this backdrop, BA's decision to close Bangladesh operations is otherwise inexplicable. Its route withdrawal (Dhaka-London-Dhaka) is going to be a great loss for the local air travel business. Association of Travel Agencies in Bangladesh (ATAB) sources say no western airline will operate from, and to, Dhaka after the pull-out of British Airways. Passengers will greatly suffer. Except Biman, there will be no direct air services between the two capitals -- Dhaka and London.
The airline's announcement to cut its Heathrow services to Dhaka comes at a time when the growth of the local aviation business is close to 8.0 per cent a year, making Bangladesh one of the fast-growing markets in the region. BA has been operating three passenger flights a week between Dhaka and London. But the plan to withdraw the route will leave the state-owned carrier Biman to fly passengers between Dhaka and London through its five weekly flights. The United Kingdom is home to over 0.5 million British-Bangladeshis. Other foreign airlines operate on the route via connecting flights to, and from, Heathrow airport, Europe's busiest airport.
Currently, 20 foreign airlines are operating in Bangladesh, which altogether control as much as 80 per cent market share. An estimated 3.45 million air-travellers moved in, and out of, Bangladesh last year, and of them, BA carried 63,402 passengers.
BA cited the reasons of non-profitability for folding up its operations Bangladesh. Insiders in aviation business say the trouble with BA's operations in Bangladesh erupted two years ago when ATAB got annoyed with the airline for drastic reduction of their sales commission. The row over the commission-cut led to the boycott of the carrier by ATAB, a move the BA believed had put a damper on the carrier's profitability on the route since then. Even though the ATAB lifted the boycott last August, the airline stated that it suffered substantial losses for the prolonged boycott.
Undoubtedly, passengers destined to the United States, North and South Americas will face the main hazard, because of BA's withdrawal of Heathrow services. Although BA's Dhaka-London route relies heavily on diplomats, corporate customers, and personnel of donor agencies, its withdrawal would land the North-America-bound passengers in trouble, suffering from longer travel time and higher fares. After BA's pull-out, passengers will have fewer seats. It may take 14-20 hours, instead of present six to seven hours to travel on the route. Other airlines will also charge more, although there will be no direct flights. Half-a-million Bangladeshi diaspora living in the UK would also suffer due to the route withdrawal.
Most interestingly, the ATAB which was against BA's operation in Bangladesh and boycotted it, now wants that the BA should stay in Bangladesh. It urged the BA authorities to reconsider the decision about suspension of its Dhaka-London flights. All concerned do strongly feel that the government of Bangladesh (GoB) should immediately take an initiative to convince the BA about the need for reconsidering its planned withdrawal of flights to, and from, Dhaka. The GoB should also invite other famous airlines also to start business operations in Bangladesh in order to cope with the rising passenger demand for air-borne seats.
szkhan@thefinancialexpress-bd.com