Editorial
Private airlines spreading wings
They must be helped to grow to full potential
The national flag carrier, Bangladesh Biman, nose-diving through years of mismanagement and corruption, its reconstituted incarnation will take a long time in paying dividends. The market size of passengers, estimated to be around Tk 3500 crore, is only touched on the fringes by our airlines. In this context, we are heartened to note that the private airlines of Bangladesh are growing at par with the global aviation industry's annual growth rate of 7.6 percent. Largely operating on the domestic routes with limited fleet strength, the 7-8 percent growth rate is quite a success story. Imagine what it could be like if airlines of Bangladesh origin could develop adequately to claim a greater share of the aviation market!
Of course, it is a cost-intensive enterprise where the initial investments are themselves high, let alone its expansion requiring staggering amounts of money. Where Biman had failed to run on purely commercial considerations, the private enterprise can be highly efficient and profitable concern, if given a chance.
By merely flying domestically, private airlines cannot survive in Bangladesh. They have to be offered market share on international routes to prosper. GMG was the only private airlines operating international flights on a limited scale in addition to flying on domestic routes. Three new airlines -- United Airways, Best Air, and Aviana Airways with the brand name Royal Bengal -- have come into domestic operations during the last eight months. Another airlines called Anmole Albab Airlines, A2 for short, is poised to fly in March to Middle East and Far Eastern countries. As they go on acquiring big aircraft they should be licensed to operate internationally. If the foreign airlines can do a lot of business in Bangladesh why can't we get some more of the passenger share.
There are two positives we can cash in on: first, the nonresident Bangladeshis have started investing in the local aviation business, so that money shouldn't be a problem in terms of expanding private initiative in the field. Secondly, larger participation of private sector will engender competition between the airlines whereby the services will improve and the cost of air journey would be reduced.
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