Local airlines key to making BD regional aviation hub

US-Bangla Airlines Managing Director and Chief Executive Officer (CEO) Mohammed Abdullah Al Mamun has welcomed the government’s decision to involve experienced international operators in ground-handling operations at the Third Terminal of Hazrat Shahjalal International Airport, saying the move could improve operational efficiency and passenger services.

In an exclusive interview with the Daily Observer, Al Mamun said the participation of internationally experienced ground-handling companies could reduce aircraft turnaround times, accelerate baggage delivery, improve punctuality and strengthen cargo handling and overall passenger services.

The Daily Observer’s Chief Reporter Mohosinul Karim, also in charge of the ‘Tours & Travels’ has conducted the interview recently.

However, the US-Bangla Airlines boss stressed that any new arrangement should also create opportunities for local companies and help develop the skills and expertise of Bangladeshi aviation professionals. “The ultimate objective should be to establish a competitive, efficient and internationally benchmarked ground-handling system capable of supporting Bangladesh’s growing aviation sector,” he said. Excerpts of the interview are as follows: 

Daily Observer: What do you consider the major obstacles to the development of domestic airlines in Bangladesh?
Mohammed Abdullah Al Mamun: The major challenges include high operating costs, aviation fuel and airport charges, infrastructure constraints, limited airport slots, shortages of skilled manpower, and certain policy and regulatory challenges. Access to adequate traffic rights and international connectivity is also important.

With coordinated policy support, Bangladesh’s domestic airlines can grow much faster and contribute more effectively to the national economy.

DO: What initiatives has US-Bangla Airlines taken to expand its fleet and destinations?
Al Mamun: US-Bangla Airlines is continuously investing in fleet expansion and strengthening its international network. Our objective is not simply to add destinations, but to contribute to making Dhaka a regional aviation hub.


DO: Is US-Bangla preparing to add new aircraft to its fleet?
Al Mamun: Yes. Fleet expansion is a major part of our long-term strategy. We have announced plans to introduce 21 new Boeing aircraft by 2027, including 15 Boeing 737-8 aircraft and six Boeing 737-800NG aircraft.

These aircraft will enable us to launch new international routes and increase frequencies on existing destinations.

DO: How many people are currently employed by US-Bangla Airlines?
Al Mamun: US-Bangla Airlines currently employs around 4,000 people across different areas of operation, including pilots, cabin crew, engineers, ground operations, customer service, administration and other specialised functions. We place strong emphasis on training and developing skilled aviation professionals.

DO: What is US-Bangla Airlines’ contribution to the Bangladesh economy?
Al Mamun: Our contribution is multi-layered. We provide direct employment to thousands of people while supporting tourism, overseas employment, international trade, remittance flows, cargo transportation and people-to-people connectivity.

A strong domestic airline industry also ensures that a greater portion of the economic value generated by aviation remains within Bangladesh.

DO: Which airlines are the main competitors in Bangladesh’s aviation market?
Al Mamun: Competition exists both among domestic carriers and between Bangladeshi and international airlines. In the domestic market, Biman Bangladesh Airlines, US-Bangla Airlines and other private carriers compete in different segments.

Internationally, Bangladeshi airlines compete with strong global carriers such as Emirates, Qatar Airways, Turkish Airlines, Malaysia Airlines, Saudia and Singapore Airlines, among others.

DO: What benefits could Bangladesh receive if ground-handling operations at Hazrat Shahjalal International Airport are managed by international companies after the Third Terminal becomes operational?
Al Mamun: The involvement of experienced international ground-handling companies could potentially improve operational efficiency, aircraft turnaround times, baggage delivery, punctuality, cargo handling and overall passenger service.

However, it is equally important to ensure opportunities for local companies and develop the skills of Bangladeshi aviation professionals. The ultimate objective should be a competitive, efficient and internationally benchmarked ground-handling system.

DO: What are the obstacles to breaking airline monopolies and creating greater international competition?
Al Mamun: The key challenges include unequal competitive conditions, limited airport slots, traffic rights, high operating costs and differences in the operating environment between domestic and foreign carriers.

We are not against international competition. On the contrary, we believe competition is essential. But it must be based on fair competition and a level playing field so that Bangladeshi airlines can compete effectively with international carriers.

DO: Can lower domestic airfares help increase passenger numbers?
Al Mamun: Absolutely. However, lower fares alone are not sufficient. Convenient schedules, operational reliability, airport facilities and quality passenger service are equally important.

If fares are maintained at a reasonable and competitive level, aviation can attract new passengers and encourage people to shift from road transport to air travel, particularly on longer domestic routes.

The reality is that fares can only be reduced if operating costs are reduced.

DO: Despite the huge potential of Bangladesh’s aviation industry, why does the country remain dependent on foreign airlines?
Al Mamun: Bangladesh has enormous aviation potential because of its large population, sizeable expatriate community, growing tourism sector and expanding trade. However, limitations in airport capacity, connectivity, traffic rights, infrastructure, fleet size and operational capabilities have historically contributed to our dependence on foreign carriers.

We need to strengthen domestic airlines, expand aviation infrastructure, develop Dhaka as a regional hub, secure appropriate traffic rights and ensure a fair and competitive aviation environment. With a long-term national aviation strategy and coordinated support from the government and regulators, Bangladesh can significantly reduce its dependence on foreign airlines and retain a much larger share of the aviation market within the country.

“Aviation should not be viewed merely as a means of passenger transportation. It is a strategic industry that contributes to tourism, remittances, international trade, employment and overall economic growth. Strengthening our domestic airlines is essential if Bangladesh is to emerge as a competitive regional aviation hub.”