The fate of the domestic airline United Airways remains uncertain as negotiations between the authorities concerned have failed to come up with a solution to resume flight operations, primarily due to the denial of a surcharge waiver.
The new board of directors of the airline made a commitment to revive the airline at its 17th annual general meeting for the year 2021-22.
The capital market regulator body, Bangladesh Securities and Exchange Commission (BSEC), initiated the relaunch of United Airways, forming a board of directors to operate the airline in 2021.
United Airways started flight operations in 2007. The airline has been grounded since March 7, 2016, amid significant financial losses due to irregularities and corruption by its management.
Talking with Dhaka Tribune, Managing Director of United Airways ATM Nazrul Islam mentioned that the main hurdle behind reviving the airline was the surcharge imposed by CAAB. The principal amount of the surcharge was around Tk60 crore.
In November 2022, Prime Minister Sheikh Hasina gave instructions to take the initiative of waiving the surcharge, offering a glimmer of hope. United Airways applied for a waiver, but the Finance Ministry rejected the application in mid-April of the current year.
Air Operator Certification (AOC) cannot be obtained from CAAB without the payment of all dues.
According to the airline’s board of directors, CAAB's net dues are around Tk56.87 crore, of which value-added tax is Tk5.65 crore, and income tax stands at Tk2,00,000.
The remaining Tk292.81 crore was calculated as a surcharge at a rate of 72% per year, as per the CAAB surcharge rate. Due to the compounding surcharge system, the charge is inflating every year, according to the board of directors.
They believe that it is not possible for the airline to repay the loan as they currently have nothing but a few unused aircraft. Moreover, no domestic or foreign investors have shown interest so far due to the huge amount owed.
Considering the situation, the current board of directors of United Airways has written to the BSEC, expressing that they will no longer be interested in continuing their duties.
United Airways Managing Director ATM Nazrul Islam told Dhaka Tribune that all possible steps were taken to restart the airline. There is little hope for reviving the airline, and the board will not continue its responsibility.
Two years ago, CAAB filed two cases against United and Regent Airways over outstanding bills. The cases are now pending in court.
Earlier, CAAB Chairman Air Vice Marshal M Mafidur Rahman told Dhaka Tribune that the airline has been asked to clear due payments, but the regulator has yet to receive any response. They are considering confiscating the planes and initiating auctions.