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Three private airlines hike fares cashing in on turmoil

Ismail Hossain | December 08, 2013 00:00:00


Three local private airlines are allegedly cashing in on the opposition political programmes like strikes and blockades by increasing fares by 10 per cent to 20 per cent depending on routes.

Like national flag-carrier Bangladesh Biman, three private domestic airlines the United Airways, the Novo Air and the Regent Airways have been suffering losses on account of low passengers for a long time.

"We have raised our fares recently but it has no connection with the current political crisis," Assistant General Manager of the United Airways Kamrul Islam told the FE on Friday.

The United Air charged Tk 3,825 fare for Dhaka-Chittagong one-way ticket last month, but now it has been raised to Tk 4,325 on the route, considered as the most profitable one.

"The fares have been raised also at the same rate in all other domestic routes," he said.  

The Novo Air hiked its lowest fare from Tk 4,950 to Tk 5,800 and the highest Tk 6,950 to Tk 7,400 recently on the Dhaka-Chittagong route, Abu Yusuf Sumon, reservation executive of the airline, said.

Another private airline the Regent Air also raised fares in all routes to the extent of 10 per cent to 15 per cent.

Kamrul Islam of the United Air said the fares were raised in view of spiralling prices of fuel and 'many other factors'. There is no connection between fare hike and political turmoil, he claimed.

Abdul Haque, a regular air passenger on the Dhaka-Chittagong route, said he had to book ticket two or three days ahead of the journey during recent blockades as passengers were on scramble for tickets.

The other routes connecting Sylhet or Khulna do not have many passengers like those on the Dhaka-Chittagong route but there too all the flights are full of passengers, said Mr. Haque.

The three domestic airlines have also cut various concessions and discounts these were offering before political turmoil.

Nizam Ahmed, a salesman of the Bangladesh Biman, said their flights on Dhaka-Chittagong route were fully booked during blockade programmes.

However, Kazi Wahidul Alam, editor of tourism magazine Bangladesh Monitor, does not see the fare hike as cashing in on the situation.

He said one should see this fare rise as an advantage for the passengers as almost all other communications were halted during blockade and hartal.

The passengers mostly flying by air are businessmen and they are getting this advantage during the crisis, he added.

The United Airways, the Regent Airways and the Novo Air recently invested US $150 million for procuring and leasing new aircraft, ensuring flight schedule maintenance, getting international registration and taking permission for their respective flight frequencies, according to sources.

Many other airlines including the GMG Airlines were shut down in recent years due to continuous losses.


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