The New Nation - Internet Edition

EXPECTATIONS did run high in the recent past about the growth of the aviation sector, but these have not been met. Much of the four billion dollar aviation market in Bangladesh is controlled by international airlines. Rough estimates show, the state-run Biman accounts for around 28 per cent of the total market while the private airlines together control only seven percent and the rest go to foreign airlines. People involved in private sector airlines state that unfriendly policies and government regulations create the major roadblocks to the growth of the sector.

The sector has good potentials the realisation of which requires government support in the form of taking decisions to promote the local aviation sector. Some steps have to be taken to encourage the local airlines without violating the open air policy. The government can, if it wants, reduce the frequency of international airline flights without unduly affecting others. Such an initiative would provide space for the local airlines to grow. Bangladesh Biman enjoys monopoly in some domestic and international routes.

This policy should be amended to promote competition between Biman and the private airlines. There is scope for concession also in the area of imposing tax on the import of aircraft parts. The sector also suffers from poor access to bank loans. The new government should formulate quickly a policy on the aviation sector that would make Biman as well as the tiny private airlines to stay in business and make progress through healthy competition. Some stimulus may be considered in view of the difficult time that both Biman and the private airlines passed through in the last few years.