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Dhaka Tribune

Biman raises fare to ease losses

Update : 17 May 2014, 07:35 PM

Biman Bangladesh Airlines is going to increase air ticket fares from June in different international routes to reduce losses, sources in the national flag carrier said.

It has already raised fares for the travellers in London, Kuala Lumpur and Singapore routes.

While the fares have been raised for both business and economy classes in London route, only business class travellers have to pay higher prices in other two routes. 

Dhaka-London route is regarded as the most popular route of the national airlines. Biman officials said the fare hikes will be made mostly for business class seats.

They added the economy class fares will also be raised by 5-10% in Kuala Lumpur, Jeddah, Doha, Kathmandu and Kuwait routes.

“We have decided to increase fares in some of Biman popular routes,” said Mohammad Shah Newaz, director (marketing and sales) of Biman.

He added: “Not only Biman but some other carriers have also increased fares, some are going to make the hike.”

Shah Newaz said raising fare and offering discounts is a regular process for an aircraft company.

Earlier in December last year, Biman rearranged and increased fares in different routes.

The national airlines incurred a net loss of Tk118 crore in the first eight months of the current fiscal year. The fare hike is an attempt to ease losses.

Biman recently decided to suspend flights in some loss-making routes and increase carrying Hajj pilgrims.

The Hajj flights are expected to help the struggling company enhance revenue income.

Official sources said flights in some important destinations like New Delhi, Kolkata, Hong Kong and Yangon were on the suspension list.

The airlines has already stopped selling tickets and started withdrawing general sales agents from the four cities.

Besides, the flight operations in Kathmandu, Bangkok and Rome-Frankfurt routes are also being assessed to see whether they should be suspended to prevent further losses.

The Biman authority recently calculated the unprofitable routes would make another loss of Tk50 crore in the final two months of current fiscal year. 

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