The Civil Aviation Authority of Bangladesh (CAAB) has demanded Biman Bangladesh Airlines pay its debt of over Tk8,000 crore, instead of agreeing to the national flag carrier's request for a loan waiver.
At the same time, CAAB said Biman did not give the correct information about the amount of money it has due.
In this regard, Air Vice Marshal (AVM) M Mafidur Rahman, CAAB chairman, sent a letter to the secretary of the Ministry of Civil Aviation and Tourism on November 1.
“Biman's letter dated September 15 mentioned its outstanding amount as Tk4,744.74 crore, which is not correct. In fact, as of June 30 this year, Biman owes CAAB Tk8,800.87 crore,” the letter reads.
Of the amount, the original bill was Tk958.39 crore, while VAT and tax stand at Tk430.52 crore and the surcharge stands at Tk6,661.95 crore, the letter adds.
According to sources familiar with the matter, Biman did not pay CAAB its dues despite reporting its income year after year. The surcharge was added as Biman was not paying the dues on time. Hence, Biman is trying to use the accrual of surcharge as an excuse to get the entire amount waived by CAAB.
On September 15, Biman Managing Director and CEO Zahid Hossain wrote to the secretary of the Ministry of Civil Aviation and Tourism, requesting a surcharge waiver.
Biman Bangladesh Airlines demanded a loan waiver from the Bangladesh Petroleum Corporation (BPC) and CAAB.
According to Biman, an unreasonable surcharge of 6% levied by CAAB and high jet fuel prices charged by the BPC compared to the international market are responsible for the airline's massive debt.
Deputy Secretary Mohammad Abdul Awal of the Biman and CA Wing wrote two separate letters to the BPC and CAAB on the issues on October 10 and 20.
According to the letter to CAAB, Biman's debt to CAAB amounts to TK4,744.74 crore.
Of the amount, the original bill was TK953.43 crore, while VAT and tax stood at TK 342.17 crore and the surge charge stood at TK 3,449.14 crore.
Biman demanded a waiver of TK3,449.14 crore in the letter to CAAB, claiming the surcharge was unreasonable.
However, CAAB Chairman Air Vice Marshal M Mafidur Rahman denied Biman's demand, adding that the aviation apex body cannot reduce charges or grant waivers once the charges are fixed by the government.
