Biman\\\'s re-entry to domestic business could heat up competition

Shah Alam Nur | Published: March 05, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

A war of business in the domestic aviation services is likely to heat up as the national carrier launches its flights next month after a gap of eight years, officials said.
The Biman Bangladesh Airlines, which is on track to turn profit by the end of current financial year, is going to begin home flights on April 6.
Given the passengers' loyalty, an aviation analyst said the state airliner is well-positioned to take the lead in domestic business, provided it can ensure punctuality in flight operations and ensure better passenger services.
The state-run airliner stopped operating domestic flights since 2007 after it incurred huge losses mainly due to poor management, the officials said. Â
To grab major share of the domestic business, a Biman official said the airlines has taken a number of initiatives including improvement of services and flight schedules, the poor performance of which has dogged much of the carrier's life.
"Biman will resume flights on domestic routes from April 6. Our target is to secure a major share of business on domestic routes," civil aviation minister Rashed Khan Menon told the FE.
Mr Menon said Biman will operate six weekly flights to Cox's Bazar, five to Jessore, three to Rajshahi and Saidpur and two to Barisal routes.
He said the ministry has already asked the national airliner to sell advance tickets for the domestic routes.
A Biman official said the new management is gearing up for domestic routes as it is a "challenge" for the newly appointed foreign managing director and chief executive officer.
The official, who was until recently its spokesperson, said the administration had earlier failed to design flight and route plan properly, resulting in the slump in business.
On an average, 0.6 million passengers travel by air on the domestic routes annually, a Civil Aviation Authority of Bangladesh official said. He said more than 70 per cent passengers use the Dhaka-Chittagong-Cox's Bazar route.
Last year, the authority data showed some 0.648 million people travelled within the country by air, recording a 10 per cent growth over 2013.
Currently, four local private airlines such as United Airways Ltd, Regent Airways, Novo Air and US-Bangla Airlines are operating roughly 58 flights in the country daily to several destinations including Dhaka, Chittagong, Cox's Bazar, Jessore, Sylhet, Rajshahi and Saidpur.
Kazi Wahidul Alam, a former Biman board member, said the state carrier will be able to dominate the business on domestic routes as most of the Bangladeshis prefer to get its services.
He, however, criticised the Biman's mismanagement, saying it has a good number of skilled workforce, but they are not properly utilised. "I hope the new administration will be able to overcome the existing crisis."
He said Biman frequently fails to maintain schedules, which forces passengers to turn to other airlines.
The national flag carrier planned to operate two Dash8-Q400 aircraft on domestic routes as Biman and Smart Aviation, Egypt have recently signed a lease agreement for the supply.
The two aircraft will be added to the Biman fleet under the term of a 5-year agreement. Biman flight and cabin crew will operate the aircraft.
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