The New Nation - Internet Edition

UNB, Dhaka

As GMG Airlines is planning to go for nearly one billion US dollar purchase of six wide-body Boeing aircraft, Biman Bangladesh Airlines Limited stopped catering services to the airlines on Wednesday for default in payment of Tk 4.3 million.

Biman also owes around Tk 6.3 million from GMG Airlines for cargo handling.

Sources in Biman said GMG Airlines also defaulted in payment to International Air Transport Association (IATA) Clearing House. For this reason, Biman has not received US$ 259,747.88 for ground handling charges provided to GMG Airlines.

On cargo handling account, GMG Airlines gave a bank guarantee of Tk 1 million whereas the dues stand at Tk 6.3 million, while its bank guarantee is Tk 4 million against supply of food items from Biman Flight Catering Service (BFCC).

A Biman high official said the cheques they received from the GMG Airlines on account of food services were dishonoured by the respective bank. The amount of such dishonoured cheques is Tk 3.2 million.

For ground handling of GMG Airlines flights, Biman is waiting to get US$ 259,747.88 from the IATA Clearing House.

As per the IATA rules, all ground handling payments would be provided through the IATA Clearing House.

Recently, IATA Clearing House informed all its members in writing that GMG Airlines, Air Botswana and Mahan Air have defaulted to pay their dues.

The Biman high official said this letter is a warning to all IATA members. "IATA by this letter to all its members gave the signal to be more cautious before making any deal with the three airliners."

But a GMG Airlines official denied the allegation that they had defaulted in payment to the IATA Clearing House. Asked about the IATA letter to its members, he said GMG Airlines always pay its bills in time to the IATA Clearing House.

GMG Airlines spokesman ATM Nazrul Islam, however, admitted they had defaulted in paying the cargo handling charges, BFCC payments and dishonoured bank cheques.

"We had requested Biman to give us some more time to pay the arrears to BFCC, but they didn't accept our request," he told UNB.