The Aviation Operators Association of Bangladesh (AOAB) has placed a three-point demand before the Ministry of Civil Aviation and Tourism to save and boost the country's aviation industry.
The demands, made by the private airlines association body, included reducing jet fuel prices, reducing abnormal surcharge and slashing the high rate of taxation and customs.
A meeting was held with AOAB and the Ministry of Civil Aviation and Tourism and the Civil Aviation Authority of Bangladesh (CAAB) on Monday.
Mokammel Hossain, secretary of the Ministry of Civil Aviation and Tourism, was present at the meeting.
On November 6, 2022, AOAB wrote a letter to the State Minister for Power, Energy and Mineral Resources Nasrul Hamid emphasising its demands.
Mafizur Rahman, AOAB secretary general and managing director, told Dhaka Tribune: “We have just again informed and shared these demands which once were placed before the Ministry for Power, Energy and Mineral Resources.”
He also said two separate letters will be issued to the finance ministry regarding the surcharge and the NBR regarding the reduction of VAT on aircraft parts with the assistance of the Ministry of Civil Aviation.
Mokammel Hossain, said the authorities will work to meet their demands so that the aviation sector stands economically stable and earns more revenue.
Currently, all airlines have to pay a surcharge of 6% monthly to CAAB, which goes up to 72% annually.
AOAB termed the surcharge compared with the international aviation industry as abnormal.
In 2017, the Civil Aviation Act was enacted by parliament. But private airlines alleged that these policies and CAAB regulations are inadequate and inconsistent for them.
Earlier, AOAB described jet fuel price changes as “jugglery with figures”. The association demanded that jet fuel prices for international and domestic airlines be set in a rational manner, and also asked for permission for domestic airlines to import and purchase jet fuel through Partex Petroleum.
On November 10, 2022, BPC revised and reduced jet fuel price for domestic airlines by Tk5 per litre. The price was Tk130 per litre in late October. But prices have not changed, so far.
At the same time, the price of jet fuel for international airlines dropped from $1 to $0.96 per litre.
Aviation Operators Association of Bangladesh (AOAB) Secretary General Mafizur Rahman told Dhaka Tribune that systematic changes were needed to ensure the survival of domestic airlines and allowing them to compete with international airlines.
Nominal changes to prices alone could spell disaster for local airlines, he added, calling for changes to the method used to determine prices.
