Aviation Operators Association of Bangladesh (AOAB) has made five demands of the Parliamentary Standing Committee on the Ministry of Civil Aviation and Tourism to ensure the survival of private airlines on domestic routes.
AOAB made its demands in a meeting with the panel in parliament on Tuesday.
Its demands are formulation of timely policies, provision of fuel at affordable rates, abolition of high tax rates, fixing reasonable surcharges and ending unfair competition.
Later, the committee recommended the Ministry of Civil Aviation and Tourism hold a meeting on these issues with the ministries concerned.
In the meeting, the organization said the regulations in the Civil Aviation Authority Act are insufficient and contradictory. Jet fuel costs make up around half of an airline's operating costs. However, fuel has to be purchased from Padma Oil for domestic flights at a cost that is 30–40% higher than the price on the global market. The price of jet fuel increases locally when its price rises on the global market. However, if the cost goes down in the global market, the same never happens locally.
They added that private airplanes have to pay a significant amount of tax when importing different components. As the cost of jet fuel rises, private airlines must increase their charges. But Biman Bangladesh Airlines transports customers on domestic routes with government assistance. Compared to private airlines, Biman Bangladesh Airlines offers cheaper prices on all domestic flights. The competition is unfair for non-governmental entities. Due to these reasons, the management of private airlines has become difficult.