Local airliners seek govt support to tap growing air traffic
Friday, 6 June 2008
Nothing but some little initiatives from the government could give a big boom to the local airliners by enabling the sagging aviation industry to rope in huge numbers of outgoing passengers that are ultimately being captured by the foreign airlines, said experts, reports UNB.
As per official data, each year more than three million people are coming in or going out from Bangladesh, with a growth rate of 7.5 per cent. Only one-third of the three million passengers could be carried by the local airliners.
"If the government allows the local airliners to buy jet-fuel without tax, then we can take the airline industry into a much healthier position," Biman Bangladesh Airlines Limited managing director and chief executive officer MA Momen said.
He said he is not in favour of getting subsidy on the fuel-oil price. "What I am trying to say is just selling the jet fuel at international prices, not imposing any tax on it."
Giving a gloomy picture of the worldwide aviation sector, he said in the last five and a half months some 24 airlines have faced closure, as they could not cope with the shooting-up prices of jet fuel.
"In the recent IATA conference we saw shadow of a dark cloud over most of the airliners' officials just for the uptrend in the jet-fuel prices, many of them apprehending whether they would be able to attend the next conference or not," the Biman boss said.
Momen observed that the jet-fuel price hike put the aviation business in a vulnerable position.
Airing the same opinion, chairman of GMG Airlines, the first and biggest private-sector airliner of the country, Abdus Sattar Nini said, "The government can declare this sector as thrust sector like the garment industry."
He also said that government could waive the travel-tax for international passengers who will fly Bangladeshi airliners for their respective destinations.
"This might sound something unusual, but, in the long run, the country as well as the local airliners will be benefited, and the employment opportunity in this sector will see a huge boom," said GMG chairman.
He also advocated for changing the duty structure for the aviation industry and reducing the airport charges for the local airliners.
"As far as I know, no country in the world does impose such taxes and duties on their local airliners. Indirect taxes are absent from the aviation sector in the world," Abdus Sattar said.
In this connection, he mentioned the 10 per cent duty on the import of spare parts for aircraft. "Many of the general people cannot imagine how this tiny 10 percent duty in the long run turns into a hefty amount," the GMG Airlines chairman said.
For example, he said, an aircraft-battery which looks like a normal lead-acid battery costs British pound 7,000. "If you impose 10 per cent duty on that, it will cost 700 pounds. This is just an example, you can find so many items like this," he added.
As per official data, each year more than three million people are coming in or going out from Bangladesh, with a growth rate of 7.5 per cent. Only one-third of the three million passengers could be carried by the local airliners.
"If the government allows the local airliners to buy jet-fuel without tax, then we can take the airline industry into a much healthier position," Biman Bangladesh Airlines Limited managing director and chief executive officer MA Momen said.
He said he is not in favour of getting subsidy on the fuel-oil price. "What I am trying to say is just selling the jet fuel at international prices, not imposing any tax on it."
Giving a gloomy picture of the worldwide aviation sector, he said in the last five and a half months some 24 airlines have faced closure, as they could not cope with the shooting-up prices of jet fuel.
"In the recent IATA conference we saw shadow of a dark cloud over most of the airliners' officials just for the uptrend in the jet-fuel prices, many of them apprehending whether they would be able to attend the next conference or not," the Biman boss said.
Momen observed that the jet-fuel price hike put the aviation business in a vulnerable position.
Airing the same opinion, chairman of GMG Airlines, the first and biggest private-sector airliner of the country, Abdus Sattar Nini said, "The government can declare this sector as thrust sector like the garment industry."
He also said that government could waive the travel-tax for international passengers who will fly Bangladeshi airliners for their respective destinations.
"This might sound something unusual, but, in the long run, the country as well as the local airliners will be benefited, and the employment opportunity in this sector will see a huge boom," said GMG chairman.
He also advocated for changing the duty structure for the aviation industry and reducing the airport charges for the local airliners.
"As far as I know, no country in the world does impose such taxes and duties on their local airliners. Indirect taxes are absent from the aviation sector in the world," Abdus Sattar said.
In this connection, he mentioned the 10 per cent duty on the import of spare parts for aircraft. "Many of the general people cannot imagine how this tiny 10 percent duty in the long run turns into a hefty amount," the GMG Airlines chairman said.
For example, he said, an aircraft-battery which looks like a normal lead-acid battery costs British pound 7,000. "If you impose 10 per cent duty on that, it will cost 700 pounds. This is just an example, you can find so many items like this," he added.