Novoair, once seen as a rising star in Bangladesh’s aviation sector, is in the process of winding down operations as efforts are underway to sell the airline to an overseas buyer.
According to sources of the airlines, negotiations are ongoing, with one potential foreign investor showing serious interest.
Faced with mounting losses, the airline’s owners—linked to the Tusuka Group—have opted to seek a sale instead of shutting down immediately, in hopes of avoiding further financial hemorrhaging.
Insiders say due diligence is expected to begin within the month, as the potential buyer prepares to audit the airline’s fleet and assets.
For now, Novoair remains operational, flying six domestic routes, but the writing on the wall is getting clearer by the day.
The airline officials admit the decision to sell has been long in the making. As jet fuel prices surged over the past few years, so did the airline’s losses.
The owners had explored a deal with a local entrepreneur not too long ago, but talks collapsed.
The ongoing discussions with the foreign party now represent the company’s last serious chance at survival.
Managing Director Mofizur Rahman confirmed that the airline is actively pursuing a sale.
“We are still operating flights, but we’re also in the process of selling our aircraft and other assets. Our goal is to transfer ownership, not shut the airline down,” he said.
One and a half year ago, the airline authority announced the sale of their aircraft and also issued an international tender.
Following the tender, a foreign buyers’ group has planned an inspection of the airline’s existing aircraft, scheduled for April 24, 25, and 26.
In preparation, Novoair initially halted ticket sales from Sunday.
The decision quickly fueled rumors of an imminent shutdown, forcing the airline to walk back and resume ticket sales to quell public speculation.
Founded in January 2013, Novoair was born out of an ambition to expand the Tusuka Group’s footprint beyond garments and into commercial aviation.
The original ownership team included industry insiders and former parliamentarians. A little over a decade later, what began with promise now finds itself teetering under the weight of debt and declining viability.
The airline’s fleet comprises five ATR aircraft, each with a 72-seat capacity.
Despite currently servicing key domestic routes such as Dhaka–Chittagong, Dhaka–Cox’s Bazar, and Dhaka–Sylhet, its lone international route to Kolkata has already been suspended.
Novoair employs around 650 people across the country, but its financials are in disarray. The company reportedly holds Tk150 crore in bank loans, with additional liabilities looming.
Shutting down operations would trigger severance and benefit payouts of around Tk30 crore—a bill the owners are eager to avoid by completing a timely asset sale.
There’s a ticking clock in play. The fleet’s airworthiness is nearing expiry, meaning the aircraft will soon be difficult to sell.
On the flip side, continuing operations would demand heavy reinvestment in new aircraft—something the current ownership is unwilling to undertake after years of bleeding cash.
When contacted, Tusuka Group Chairman Arshad Jamal declined to comment on the airline’s future.
Novoair’s situation mirrors a recurring pattern in Bangladesh’s aviation history. Once-promising carriers like GMG Airlines, United Airways, and Regent Airways eventually folded after brief and turbulent runs.
Among private carriers, only US-Bangla Airlines and newcomer Air Astra remain afloat, alongside state-run Biman Bangladesh Airlines.
If Novoair’s sale falls through, it may soon join the list of fallen flag-bearers—another cautionary tale in a market that seems perpetually hostile to private aviation ventures, said an industry insider.
