IATA Urges Bangladesh to Release $320M Owed to Foreign Airlines

Shah Amanat International Airport in Chattogram is set to revive its 270-tonne cargo hub as part of a broader plan to strengthen Bangladesh’s air cargo infrastructure and prepare for new export routes, including direct cargo flights to China.

Biman Bangladesh Airlines will operate 226 dedicated flights for Hajj this year, consisting of 118 pre-Hajj and 108 post-Hajj flights. Pre-Hajj flights will run from April 29 to May 31, with 96 flights from Dhaka to Jeddah and Medina, and 22 flights from Chattogram and Sylhet.

In response to India’s abrupt withdrawal of transshipment privileges on April 8, 2024, Bangladesh is accelerating its air cargo infrastructure development to maintain export continuity and establish itself as a regional logistics hub. India’s decision to revoke a four-year-old facility disrupted vital air cargo routes, particularly for ready-made garments, as nearly 600 tons—18% of Bangladesh's weekly air exports—had been routed through Indian airports.

Biman Bangladesh Airlines achieved a 36% increase in sales from September 2024 to January 2025, totaling Taka 4,057 crore, up from Taka 2,982 crore in the same period the previous year. This growth was driven by competitive fare strategies, the lifting of sales restrictions, and improved revenue management.

The recent hike in excise duty on domestic and international air tickets by the National Board of Revenue (NBR) is causing significant concern among Bangladesh's local airlines. Industry officials warn that this move will negatively impact the aviation market, particularly domestic passenger growth.

The Anti-Corruption Commission (ACC) has launched an inquiry into alleged misappropriation of Tk4,000 crore in the construction of Dhaka Airport’s third terminal. Project costs reportedly ballooned from Tk7,000 crore to Tk22,000 crore due to corruption, design alterations, and the use of substandard equipment.