IATA objects to govt's air fare control move

FE Team | Published: January 31, 2026 22:49:24

FE REPORT
The International Air Transport Association (IATA), a trade association for the world's airlines, has made an objection to Bangladesh government's proposed air fare control measures outlined in Section 43A under the Civil Aviation (Amendment) Ordinance 2026.
The organisation made the objection through a letter sent to Nasreen Jahan, Secretary of the Ministry of Civil Aviation and Tourism (MoCAT), on January 14, saying that the measure may have unintended negative consequences for the consumer choice, air connectivity and economy-wide productivity.
IATA sought clarification on whether the proposed fare filing would be purely for informational purposes or used as a regulatory mechanism.
The association argued that if filings were used to set or cap fares, the measure would amount to indirect price control, disrupting market dynamics and threatening airlines' commercial sustainability.
Representing around 360 airlines worldwide, including Biman Bangladesh Airlines, US-Bangla Airlines and Air Astra, IATA stressed that pricing freedom was essential for airlines to manage high fixed costs, volatile fuel prices and fluctuating demand.
"If air fare is regulated, airlines will lose some of their ability to manage financial performance as well as meet customer needs. The lack of financial optimisation may lead to unintended consequences such as fare increases in some areas, disproportionately affecting the most price sensitive passengers, and the commercial viability of marginal routes could be at risk," also read the letter.
The IATA urged the Bangladesh government to reconsider the proposed air fare control provisions and uphold the principle of pricing freedom for airlines. This aligns with global best practices, ensures competitive pricing and supports sustainable growth in the aviation sector, it added.
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