The government has taken steps to change rules and regulations that have created barriers for stakeholders in the country’s aviation sector over the past 42 years. To this end, the Civil Aviation Rules, 1984 are being amended, and new rules are being formulated to improve passenger service standards while ensuring safety and security in civil aviation. Civil Aviation Minister M Rashiduzzaman Millat disclosed this at a policy conclave titled “World-Class Aviation for Bangladesh’s Economic Development”, organised by Bonik Barta. The conclave was held on Saturday at The Prestige of United Convention Centre in Kurmitola, Dhaka.
Speaking as the chief guest, the aviation minister said, “Since today’s event is focused on policy, I would like to inform you that, after nearly 42 years, we’re amending the Civil Aviation Rules, 1984 and formulating the new Rules 2026. Our new regulations are being formulated to make them business- and private investment-friendly. Necessary provisions will also be incorporated into the regulations to improve passenger service standards and ensure safety and security in civil aviation.”
Bonik Barta Editor and Publisher Dewan Hanif Mahmud moderated the event. Humaiun Kobir, state minister for Foreign Affairs, attended as the special guest. The keynote paper was presented by Air Vice Marshal (retd) Mahmud Hussain, former chairman of the Bangladesh Civil Aviation Authority (CAAB). Another paper on the country’s aviation sector was presented by KM Mozibul Hoque, chairman of Total Air Services Ltd (TAS), the general sales agent for AirAsia and Kuwait Airways. Among others, the event was addressed by US-Bangla Airlines Managing Director Md Abdullah Al Mamun; CAAB Member (ATM) Air Commodore Md Noor-E-Alam; and Abdul Hai Sarker, chairman of the Bangladesh Association of Banks (BAB) and Dhaka Bank PLC.
Ambassadors and embassy officials from various countries in Dhaka, officials from the Ministry of Civil Aviation and Tourism and CAAB, representatives and country managers of airlines operating in Bangladesh, representatives of general sales agent (GSA) companies, bankers, politicians, academics, businesspeople and people from various other professions attended the conclave. Discussions at the event focused on the existing potential and challenges of the country’s aviation sector, investment opportunities, infrastructure development, policy reforms and the way forward.
Speaking as the chief guest at the policy conclave, Aviation Minister M Rashiduzzaman Millat said, “Our goal is to transform Bangladesh’s economy into a trillion-dollar economy by 2034. The aviation sector has an undeniable role to play in this journey. Airports are the gateways to the country and serve as a mirror of the state. So we’re formulating an aviation master plan to develop this mirror in a planned manner.”
Addressing representatives of various airlines attending the event, the minister said, “You’re our key stakeholders. So your active participation must be ensured in formulating regulations aimed at facilitating investment. An initiative has been taken to amend provisions on aircraft maintenance facilities, taking into account the needs of private airlines. Steps have also been taken to address complexities related to the maintenance, repair and overhaul of aircraft components.”
He added, “To facilitate aircraft maintenance for domestic and foreign airlines, we’ve planned to establish an international-standard maintenance, repair and overhaul (MRO) unit. Necessary steps will also be taken to simplify the process of establishing and expanding civil airports through private initiatives. I hope that, with your cooperation, we’ll achieve our goal of developing an aviation hub.”
Highlighting various aspects of the potential for a fully developed international air travel market in Bangladesh, State Minister for Foreign Affairs Humaiun Kobir, the special guest at the policy conclave, said, “The market is currently worth around BDT 700 billion. We need to capitalise on this potential to develop a strong regional route network across South and Southeast Asia. We need to explore partnerships with low-cost airlines and the potential for new gateways. East Asia, China, Japan and Korea are highly promising markets for passenger transport, tourism, trade and investment. There is also huge scope to increase the movement of people and goods in that direction. I believe the country will move forward under the leadership of the prime minister. Bangladesh will prosper.”
At the event, the state minister also spoke about the ongoing negotiations with a Japanese consortium to operate the third terminal of Hazrat Shahjalal International Airport (HSIA). He said, “We want to reach an agreement that’s beneficial to both sides. In other words, it should be a ‘win-win’ agreement. I am pleased to say that we’re very close to finalising an agreement. It’ll be a ‘win-win’ agreement, and Bangladesh’s share of the revenue will be much higher than what was agreed for Terminal three under the previous regime. There will be a soft opening of the third terminal in December, and it’ll become fully operational by March-April.”
On the potential associated with the third terminal, Humaiun Kobir said, “Once it becomes operational, 12 million passengers will be able to travel to and from Bangladesh each year. This will mark the beginning of the process of turning Bangladesh into a major aviation hub. We need to ensure our operational readiness for using the third terminal. Passenger transfer arrangements from the airport and other operational preparations need to be brought up to international standards, and we’ll do that.”
Earlier, Air Vice Marshal (retd) Mahmud Hussain, former chairman of CAAB, presented the keynote paper at the policy conclave. He said, “The aviation sector’s contribution to Bangladesh’s GDP is very low. Vietnam and Sri Lanka are doing very well in this regard. We also need to focus on this area. Our local airlines cover 20-30 percent of demand, while the rest is covered by foreign airlines. Money is flowing out of the country, even though we could have retained this money domestically.”
He added, “We’re still not prepared for the future. If the aviation sector is properly developed, it can contribute $2.1 billion to $3 billion to GDP. We should start planning for the development of aviation now. To meet demand, airlines are seeking to lease aircraft to address the shortage. Three or four companies are looking to lease 40 aircraft by 2027. Local airlines are also planning to expand their fleets over the next few years. Biman Bangladesh, US-Bangla, Air Astra and NOVOAIR — these four airlines plan to add a total of 40 aircraft to their fleets by 2027.”
On the challenges facing the aviation sector, the former CAAB chairman said, “Besides these, the basic challenge is a leadership crisis. We still don’t have an ecosystem in place. We’ve not been able to make much progress in areas such as pilots, entrepreneurs, technical and non-technical personnel. Our infrastructure is also not adequately developed. Entrepreneurs need to come forward. Academia needs to play a visionary role in this regard. We need to focus on how we can develop the sector.”
TAS Group Chairman KM Mozibul Hoque presented another paper at the event. He said, “The civil aviation ministry has a 15-year roadmap, which needs a strategic committee and a steering committee to implement this roadmap. The country’s aviation market is currently worth around $5 billion to $6 billion. If we move forward in a planned manner, it can be increased to $15 billion. Around 22 percent of our market is now held by domestic airlines, while around 77 percent is held by foreign airlines. Every year, around $1.16 billion leaves Bangladesh for air travel.”
He added, “Our aviation assets are worth around $25 billion. We also need to consider how much revenue we’re generating from these assets. Aviation now contributes 0.8 percent to GDP. Our goal should be to harness the potential of this sector on a much larger scale.”
Speaking at the event, US-Bangla Airlines Managing Director Md Abdullah Al Mamun said, “As Hazrat Shahjalal International Airport has only one runway, US-Bangla Airlines wastes around BDT 2 million worth of fuel every day due to excessive waiting on the taxiway, while its on-time flight operations are also being disrupted. The failure to consult domestic air operators during the construction of the third terminal, higher taxes and VAT compared with neighbouring countries, high fuel prices, unequal ground-handling charges and licensing complications are seriously hampering the capacity of domestic airlines. The lack of international-standard facilities, inadequate entertainment options and additional fees on agricultural exports are also major obstacles to developing Bangladesh as an aviation hub.”
Welcoming the initiative to replace the old Civil Aviation Rules, 1984 with new legislation in 2026, the US-Bangla MD added, “This will simplify the aircraft engine repair process and save domestic airlines, including US-Bangla and Biman Bangladesh, tens of millions of dollars annually. If we can implement plans to purchase around $2 billion worth of new aircraft through easy financing from leasing companies, expand airport infrastructure and formulate international policies that are investment-friendly and ensure a level playing field, as in India and the Maldives, Bangladesh’s domestic aviation and tourism sectors will develop rapidly.”
Bangladesh Association of Banks (BAB) and Dhaka Bank PLC Chairman Abdul Hai Sarker said, “If a project is viable and there’s assurance that it’ll generate revenue or benefits, there will be no shortage of financing. We can even finance projects locally using our own resources, without having to depend on foreign financing. But for that, we need to formulate sound plans and undertake the right projects. Despite having infrastructure and aircraft, the main problem is a lack of efficient management. Without quality management, it’s not possible to fully utilise national assets for the welfare of the people and passengers.”
He added, “We have weaknesses throughout the entire process, including aircraft ground handling, cargo, passenger services and flight operations. I’ve seen it myself several times — after a flight lands and the boarding bridge is connected, the gate remains closed. Passengers have to wait for 10-15 minutes for someone to come and open the door. Such experiences greatly annoy foreign tourists and travellers. Even these seemingly ordinary issues need greater attention.”
CAAB Member (ATM) Air Commodore Md Noor-E-Alam said, “Bangladesh has an opportunity to become a regional aviation hub due to its geographical location, growing passenger and cargo traffic, and increasing airport infrastructure capacity. We’re taking an integrated approach to developing infrastructure, technology, air traffic management and passenger services to bring the aviation sector up to international standards. Under the leadership of the prime minister, the aviation sector will be brought up to global standards with the principle of ‘Bangladesh First’.”