Reliable Brokers
Online Investing
Alerts & Analysis
Easy Trading

How Dhaka aims to become a regional aviation hub

  • 34 airlines, including four domestic, operate from Bangladesh
  • Currently, Dhaka airport handles over 20,000 pax daily
  • Pax handling capacity to rise 20m annually
  • Cargo capacity rises to 500,000 tons
  • Plan to build second runway to ease pressure
Update : 07 Aug 2023, 12:16 AM

Dhaka is set to take a major step towards becoming a regional aviation hub with the long-awaited launch of the third terminal of Hazrat Shahjalal International Airport in early October.

The third terminal has been under construction since 2019 at a cost of around Tk21,300 crore. It includes various modern facilities like major airports in Singapore, Bangkok, the Middle East, Europe, and the US.

According to the third terminal project profile, it will raise the passenger capacity of Dhaka airport to 20 million each year.

Under the project, a new cargo village is being constructed for handling import-export goods. This will increase the cargo capacity of the airport from 200,000 tons to 500,000 tons annually.

In April this year, Prime Minister Sheikh Hasina directed to develop a roadmap on how the Dhaka airport can be transformed into a dominant aviation hub in the region. According to aviation experts, a global aviation hub requires a well-equipped airport, a significant number of aircraft, passenger-friendly air industries, and a proper policy.

Aviation industry insiders said Biman Bangladesh Airlines will have to play a leading role following the launch of the third terminal.

Although the national carrier’s image has been marred by incompetence and mismanagement, the situation is slowly improving, they added.

The Biman authorities said they are trying to bring back the golden era of the airline and ensure highly-standard passenger, cargo, and ground handling services.

According to sources, Biman has set plans to purchase a new airbus and is expanding its air network through codesharing and interline agreements with a number of airlines, including Gulf Air and Japan Airlines.

After purchasing new aircraft, Biman hopes to resume previously launched flights to various destinations in Europe, Asia, Australia and the US, including New York and Sydney.

Private airline US-Bangla has also set plans to add six widebody and  20 narrowbody aircraft soon.

Prominent aviation expert Kamrul Islam told Dhaka Tribune: "If Bangladesh wants to get a leadership position in the Asian region, we must expand the air network with the East and West, and the national carrier must be more effective."

Current picture of the air industry

Apart from Biman, three private airlines – US-Bangla, Novoair and Air Astra – are currently operating flights from Dhaka airport.

Biman operates flights to eight domestic destinations and 22 international destinations in 16 countries. A total of 34 airlines currently operate flights to and from Bangladesh.

According to the Civil Aviation Authority of Bangladesh (CAAB), some new airlines, including Fly Baghdad, Ethiopian Airlines, Wizz Air, ahan Air (Iran), Air Canada, Air France, Pakistan International Airlines (PIA), and Royal Jordanian Airlines, have shown an interest in operating flights to Bangladesh. 

The government has taken the initiative to sign bilateral aviation agreements with 16 countries, including Mauritius, South Africa, Czech Republic, Spain, Latvia, Cyprus, Guyana, Ethiopia, Rwanda,  Kenia, Brunei, Seychelles, Lebanon, Turkmenistan, Algeria, and Switzerland. 

The government has also upgraded air agreements with 14 countries, including Canada, Qatar, Luxembourg, Uzbekistan, Morocco, China, Libya, Azerbaijan, Germany, Malaysia, Iraq, Australia, Indonesia, and Cambodia.

Benefits of the third terminal

Stakeholders believe that the third terminal will open the door to new horizons in trade and commerce.

They added that a number of foreign investors and cargo airlines authorities have already shown an interest in investing in the country.

According to Maksudul Islam, director of the third terminal project, cargo movement will increase and the terminal will also enable quick unloading of goods as the metro rail will be connected with the terminal.

Besides, there are five- and three-star hotel facilities near the airport, and shopping malls are also being built with private investment.

According to the project profile, a new Cargo Village is being built as part of the airport expansion. The area of this cargo village is 63,000 square feet.

The project director said that vegetables and fruits are exported to various countries in the Middle East and Europe through the airport every day. Once the new terminal is opened, the export process will be simplified.

"When the third terminal opens, cargo handling will not be as manual as it is now. The entire process will be automated and will take less time," he added.

The project official further said the terminal will have secure, international-standard facilities such as high-end restaurants, shopping malls, super shops, luxurious cafes and bars.

“Air passengers will enjoy an experience similar to airports in developed countries, like London, Bangkok and Singapore,” he added.

Plan to build another runway

The authorities have finalized plans to build another runway at a cost of Tk15,000 crore to tackle the increased flight pressure when the third terminal opens.

CAAB Chief Engineer Abdul Malek told Dhaka Tribune: "The second runway will be a backup, to ensure smooth take-off and landing during unwanted situations, such as if the first one becomes inoperable."

The construction of the runway will begin soon, he added.

 

Top Brokers