Bangladeshi private sector demands end to unfair competition

The Aviation Operators Association of Bangladesh (AOAB) have demanded the government end unfair competition from state-owned Biman Bangladesh Airlines which they claim receives state subsidies on domestic routes. The charge is one of five demands presented by the AOAB to the country's Parliamentary Standing Committee on Civil Aviation and Tourism on December 20, 2022, report Bangi News and The Dahaka Tribune. Apart from the competitive concerns, other complaints included the need for timely policies; provision of affordable fuel; an end to high taxes; and a requirement for reasonable surcharges. In response, the parliamentary committee recommended the Civil Aviation and Tourism Ministry schedule a meeting with various other affected ministries to discuss the demands. Amongst others, the AOAB believes that current civil aviation regulations are insufficient and contradictory. They dictate, amongst other things, that Bangladesh's airlines have to buy jet fuel from state-owned Padma Oil for domestic flights at 30% to 40% higher cost than the price of jet fuel on the global market. They say the price of jet fuel increases locally concomitant with global hikes, but never comes down again when the price drops globally. As a result, jet fuel makes up more than 50% of local airlines' costs. Another gripe highlighted was the import tax levied on aircraft components.<br/>