Original Research Article DOI: 10.

18231/2394-
2770.2018.0012

Economic growth of airlines industry: An overview of domestic

airlines in Bangladesh

Sharmin Sultana

Lecturer, Business Administration, Southern University Bangladesh, Bangladesh

Corresponding Author:
Email: sharmin.sunny53@[Link]

Abstract
According to International Air Transport Association (IATA), the aviation industry supports tourism and international business by
providing the world’s only rapid worldwide transportation network. Airlines transported 2.8 billion passengers and 47.6 million
metric tons of air cargo in 2011, connecting the world’s cities with 36,000 routes. By providing these services, the aviation
industry plays an important role in enabling economic growth and providing various economic and social benefits. (The Travel &
Tourism Competitiveness Report 2013). In Bangladesh the role of domestic airlines are increasing economically and socially.
Basically, secondary data are used and four main domestic airlines are considered as the sample. The paper focused on the history
of aviation industry in Bangladesh, the overview of domestic airlines and the current trend. The paper is concluded with some
policy recommendations to further development of the airlines industry in Bangladesh.

Keywords: Domestic airlines, Economic growth, Bangladesh.

Introduction dominating the market currently than Biman

Today’s airline industry exists in an intensely Bangladesh Airlines.
competitive market. As per data available from the
information centre of The World Bank, during 2012 Literature review
approximately 2.8 billion people traveled using air Air transport industry plays an important role in
transportation. The global airlines industry is expected the economy of any country today. Aviation industry
to reach an estimated $832.8 billion in 2020 with a has the power to increase national income, employment
CAGR of 3.7% over the next seven years (2013-2020). and tax revenues with its various extensions such as
The global airline industry comprises air transport airline companies, airports, ground services and aircraft
service providers of passenger and cargo. Industry manufacturers (Oxford Economics, 2014: 7).
services are used by individuals and business for Aviation demand is affected by many factors which
international, domestic, and regional travel purposes interact with each other. It can be said that in general
across the world. (JCR-VIS Credit Rating Company economic factors affect the demand for air transport.
Limited 2013) Income levels and product prices are the most
Air transport has always been considered as a very influencing factors for demand. The higher is the
special sector in the international context. It facilitates income, the higher is the demand for further travel. If
global economic and social growth, international and income decreases, people give up these kinds of needs
domestic tourism, world trade growth (Hardy, F. W. that they think as luxury (Doganis, 2010: 200).
2009). Because it acts as a catalyst for economic activities
The domestic air transportation network in of air transport, the sector is vital for any country's
Bangladesh is comprised of 8 conventional (full-size) economy. As well as supporting international, regional
airports, 8 airports for STOL (Short-Take-Off and and local prosperity and economic growth, it increases
Landing) aircraft including two airports under the quality of life serving many different purposes such
construction. The 8 conventional airports, which are as business, education, health, social activities
used for commercial purpose, handle widely varying (Baikgaki and Daw, 2013: 389). Therefore, air transport
traffic volumes. The largest airport is Zia International is very important as it affects people's living and
airport near Dhaka and the smallest one is Cox’s Bazar working conditions, their relations with other nations
airport. The most important corridors, as measured by and daily life – economically, socially and politically
air passenger volumes, are those between Dhaka, at one (Kane, 2007: 5).
end, and Chittagong, Jessore, Sylhet at the other end. Nisa Seсilmis and Aylin Koс (2016) discovered
(M.J.B. Alam, and M.M. Hoque). that, national income per capita and industrial
In Bangladesh, there are few domestic airlines production index have positive impact on aviation
which are operating flights both nationally and demand, while ticket prices, inflation and exchange rate
internationally. The demands of these airlines were low have a negative impact on it.
before due to high price. But now the price is getting
down due to high supply, low operating cost, customer
service, safety and time. Some private companies are
Journal of Management Research and Analysis, January-March, 2018;5(1):61-68 61
Sharmin Sultana Economic growth of airlines industry: An overview of domestic airlines in
Bangladesh

M. Marazzo et al. (2010) analyzed the correlation Rational of the study

between aviation demand (passenger-km: PAX) and Air transport has always been considered as a very
GDP for Brazil. special sector in the international context. It facilitates
H. Zhang and M. Zhu (2011) studied the global economic and social growth, international and
relation between air transportation (total turnover of domestic tourism, world trade growth (Hardy, 2009).
air transport) and GDP in China for the years of The researcher tries to evaluate the trend and
1990– 2009 by using a causality test. growth of domestic airlines which can contribute
S. Sun and Y. Li (2011) analyzed the correlation largely in GDP in future.
between the development of air transport industry and
economic growth, and the contribution to economic Research Objectives
growth in China for the years since 1978 till 2009. The specific objectives are:
B. Mehmood and K. Kiani (2013) tested the 1. To know about the historical background of the
relationship between aviation and economic growth aviation industry in Bangladesh.
using the data from 1973 to 2013 by using 2. To show the current trend of domestic airlines in
causality analysis for Pakistan data. Bangladesh.
B. Mehmood et al. (2013) researched the 3. To find out the problems and provide
interaction between aviation demand (passengers recommendations for the betterment of domestic
carried by air transport-PC) and economic growth airlines in Bangladesh.
(current LCU-GDP) in India, 1970 to 2012.
According to B. Mehmood at al. (2014) in the long Research Design
run there is a co-integration equation between aviation Sample size
demand (PAX) and economic growth in Romania for the Random sampling method is used in this study. Four
years from 1970 to 2012 and this situation holds in the main domestic airlines are chosen as sample:
short run. Granger causality exists running from PAX to 1. Biman Bangladesh Airlines
GDP, but does not exist from GDP to PAX. 2. Regent Airways
B. Mehmood and A. Shahid (2014) used co- 3. Novo Air
integration and causality analyses to estimate the 4. U S Bangla
relationship between aviation demand (passengers
carried by air transport: PAX) and economic growth Sources of data
(GDP) in Czech Republic, 1970–2012. Secondary sources of data from various websites,
B. Mehmood et al. (2014) has revealed the research articles and books, IATA Annual Review 2016,
relationship between aviation demand and economic ministry of Civil Aviation and Tourism, CAAB and
growth for Bangladesh with the data covering 1973– Bangladesh Bureau of Statistics.
2012. By using fully modified OLS, dynamic OLS and
conical co integration tests, they revealed a relationship Aviation industry in Bangladesh
between aviation demands. And economic growth, and In August1943, a South Asia Command was
by using Granger causality test they show that the formed under Admiral Mountbatten, including the RAF
direction of causal relationship is from GDP to PAX. Third Tactical Air Force (Third TAF), which launched
Y. Hu et al. (2015) investigated domestic air the second Burma Campaign against the Empire of
passenger traffic (APT) and real economic growth Japan in the December that year. The Royal Indian
in China by using heterogeneous panel models for Airforce (RIAF), Indian part of the Royal Air Force
the time span of 2006Q1–2012Q3. played a crucial role by providing tactical
M.J.B. Alam, and M.M. Hoque studied that, the reconnaissance and extensive close support to the army
supply cost of the private airlines in Bangladesh is 40 when a British Corps started advancing down the
percent lower than the same for public airlines. The Arakan coast in January 1944.
results of this study can be used by the South and In November 1943, 6 Squadron and later
Southeast Asian countries to develop policies in this 8Squadron were moved to Cox's Bazaar. By the end of
regard. February1944, No. 6 Squadron pilots had completed
K Rahman, S Azad, and S Mostari (2015), drawn a over 1,000 operational sorties, averaging 6 sorties a day
clear picture of the types of competitive advantage and per pilot, are cord for the entire the Third TAF. Towards
how these advantages can be achieved and sustained the end of March 1944, 4 Squadron joined the
through adopting generic strategies. operations when it was moved first to Feni airfield, and
Md. Jobair and Dewan (1998), developed some then to Comilla in June to replace 6Squadron.
models of infrastructure development and service The Shahjalal International Airport originated in
improvement of domestic air transportation in the 1941, during the Second world war, as the British
country. government built a landing strip at Kurmitola, several
kilometers north of Tejgaon, as an extra landing strip
for the Tejgaon Airport. At that time Tejgaon was a
Journal of Management Research and Analysis, January-March, 2018;5(1):61-68 62
Sharmin Sultana Economic growth of airlines industry: An overview of domestic airlines in
Bangladesh

military airport, to operate warplanes towards the war awarded Bir Sreshtho and Minhas was awarded Nishan
fields of Kohima (Assam) and Burmese war theatres. Shah – E Haider, respectively the highest military honors in
Amanat International Airport was a Combatair field as Bangladesh and Pakistan, and both has air bases named
well as a supply point and photographic reconnaissance after them, respectively in Jessore and Kamra.
base by the United States Army Air Forces Tenth Air Force Modern aviation in modern Bangladesh are a
during the Burma Campaign 1944-1945. Known American began when the British Government of India built a
units assigned to Chittagong were: 80th Fighter Group, Royal Indian military air strip in Tejgaon during World
flew P 38 Lightning fighters over Burma between March War II to fly war planes towards the battlefields of
1944 and February 1945; 8th Reconnaissance Group, Kohima and war theaters in Burma. Other air strips
between October and December 1944 (various were builtin Comilla, Feni, Chittagong, Cox's Bazar,
detachments); and 4th Combat Cargo Group, flew C-46 Chakaria, Sylhet, Jessore, Rajshahi and Lalmonirhat.
Commando transports between January and (source: [Link]
[Link] International Airport in Sylhet was built
during British rule as Sylhet Civil Airport, partly to check Biman Bangladesh Airlines
Japanese aggression from Burma. Biman Bangladesh Biman Bangladesh Airlines is the government
Airlines earns most of its revenue from this airport. airline of Bangladesh. Its main hub is at Shahjalal
International Airport in Dhaka, and also operates flights
During the 1971 Liberation War of Bangladesh from Shah Amanat International Airport in Chittagong,
Indian Air Force (IAF) and the Pakistan Air Force Shahjalal International Airport in Dhaka and Osmani
(PAF) fought had extensive engagements in the sky International Airport in Sylhet. BIMAN is the largest
over Bangladesh. The first engagement was on 22 but is still a relatively small carrier, operating 10
November over the Salient of Boy rain West Bengal .In aircraft (all jets) to 19 international and three domestic
the process Tejgaon Airport suffered extensive damage. destinations. Biman Bangladesh Airlines was
Then, on the night of 3 December 1971, Canberra established on 4 January 1972 as Bangladesh's national
bombers of Eastern Air Command struck Tejgaon, airline under the Bangladesh Biman Ordinance. It has
which was guarded by PAF No.14 Squadron equipped air service agreements with 42 countries & currently
with Sabre jets which lacked night fighting capability. flies to 16 different countries. Bimaan is the largest but
By the morning of 4 December, strike missions against is still a relatively small carrier, operating 10 aircraft
Tejgaon were assigned to 11 IAF squadrons, including (all jets) to nineteen international and three domestic
Hunters of the No.7 Squadron, No.14 Squadron, No.17 destinations. Biman Bangladesh Airlines, popularly
Squadron and No.37 Squadron of IAF, as well as Su-7s known as Biman, is the national airlines of Bangladesh.
of No.221 Squadron and MiG-21s of No.28 Squadron. A member of IATA, it flies passengers and cargo to 18
Throughout 4 and 5 December, IAF concentrated international destinations in Asia and Europe.
in attacking the aircraft on the ground. But, it failed to (Source:[Link]
cause significant damage to the PAF assets in well-
dispersed and camouflaged locations. By the evening of Biman came into being on January 04, 1972 with a gift
5 December, the IAF changed tactics. On the morning of DC-3 aircraft from Bangladesh Air force. Presently
of 6 December four MiG-21s (No.28Sqn), flying from Biman has four 777-300ER, two 777-200ER, two 737-
Gauhatihit Tejgaon with 1000 lber, scoring several hits 800, and two A310-300 in its fleet. Biman does entire
on the runway. Kurmitola was attacked on the morning maintenance work on its F-28 aircraft. Biman is also
of 7 December, when Mig-21s of No.28 Sqn again hit doing C-check, D-check on DC10-30 and A310-300 in
the [Link].7 Sqn was pulled out of the eastern ops its hangar complex at Dhaka. Checks, repair and
on the 6 December to help the Indian Army in the west. maintenance of one DC10-30, one wide bodied Boeing
Repeated attack by MiG-21sand Hunters of No.14 and and two F-28 aircraft can be done simultaneously there.
No.28 however, kept the runway cratered. The IAF In addition to its own aircraft, Biman’s ground-handling
assault effectively grounded the PAF by 7 December, unit also provides support to Singapore Airlines, Thai
and No.14 Squadron was taken out of the war. The IAF Airways, Malaysia Airlines, Qatar Airways, Emirates,
also bombed other air fields including the abandoned Kuwait Airways, Oman Air, Saudia, Gulf Air, PIA,
WWII airfields of Comilla, Lalmanirhat and Shamsher Indian Airlines, Dragon Air, Druk Air, [Link] Hazrat
Nagar through the war, denying their use to PAF. Shahjalal
On August 20, 1971 Flight Lieutenant Matiur International Airport, Dhaka.
Rahman attempted to pilotaT-33 trainer from Karachi, Biman Flight Catering Center (BFCC) has the capacity
Pakistan to Indian order to defect from the Pakistan Air of producing 8500 meals a day and is providing cuisine
Force and join the liberation movement of Bangladesh. not only to Biman but also to Saudia, Etihad, Malaysia
However, Matiur could not take the plane out of Airlines, Thai Airways, Emirates, Dragon Air and
Pakistani territory, as reportedly, Pilot Officer Rashid China Southern Airlines.
Minhas, the other pilot in the plane, forced it to crash in (Source:[Link]
Thatta, a place near the Indian border. Matiur was
Journal of Management Research and Analysis, January-March, 2018;5(1):61-68 63
Sharmin Sultana Economic growth of airlines industry: An overview of domestic airlines in
Bangladesh

Domestic destinations: Barisal, Chittagong, Cox's develop the country’s first full-fledged maintenance
Bazaar, Dhaka, Sylhet, Saidpur, Rajshahi, Jessore hangar belonging to a private airline. Regent Airways is
International destinations: Abu Dhabi, Bahrain, becoming the most-preferred airline for the passengers
Doha, Dubai, Jeddah, Kuwait, Muscat, Riyad, to fly with. They have proved an on-time performance
Bangkok, Kuala Lumpur, Singapore, London, of over 97% and have carried over 783,240 passengers
Katmandu, Kolkata, Yangon within three years of operations with a perfect safety
record.
Regent Airways (Source:
Regent Airways launched in late 2010 and added [Link]
international services in mid-2013. It currently serves
three domestic and four international destinations with Novo air
a fleet of five aircraft (two jets and three turboprops). NOVOAIR is the premium brand private airline in
Domestic Destinations: Dhaka-Chittagong-Cox’sbazar Bangladesh started domestic flight operations in
International Destinations: Muscot, Kathmandu, January 2013. They serve our esteemed passengers with
Doha, Kualalampur, Colombo, Bangkok and Singapore. one motto – “The Art of Aviation”. Within 3 years,
Package destinations: Cox’s bazar, Nepal, Thailand, NOVOAIR established as a Premium Scheduled
Malaysia and Singapore. Passenger Airline spreading wings in all domestic and
amazing regional destinations. With a fleet of EMB-145
Regent Airways (incorporated as HG Aviation Jet and superb ATR 72-500 aircrafts, combined with
Limited) is a wholly-owned subsidiary of Habib Group superior on-time performance, great comfort and
- the Chittagong-based conglomerate engaged in a excellent safety record, NOVOAIR achieved the honor
diverse portfolio of business endeavors which include of “Best Domestic Airline” adjudged by “Monitor
power, steel, readymade garments, textiles, spinning, Airline of the Year”. NOVOAIR has a host of
cement, paper and fertilizer among others. professionals to support your need including air charter,
The airline began commercial flight operations air cargo transportation and travel & holiday services.
since 10 November, 2010 using its own fleet of two They take a great deal of pride in providing services to
Canadian-built Bombardier Dash-8-Q300 aircraft, each our clients with safety, reliability, cost effectiveness and
seating 50 passengers in a single-class layout. The dedication. The service ethics evolves with “You first”
aircraft is known for its exceptional reliability and and therefore, await to listen from you. (source:
passenger comfort. [Link]
Their fleet consists of 08 (eight) aircrafts. Among Novo air launched in early 2013 and currently
those 02 (two) Dash-8-Q300 aircraft reputed for its operates three regional jets to five domestic
exceptional reliability and passenger comfort, which are destinations. It recently secured approval to operate
maintained to European standards, 02 (two) Boeing overseas routes and aims to launch international
737-700 and 04 (four) Boeing 737-800 Next Generation services by the end of 2014
aircraft which was awarded type certification by the
FAA, In addition, the newer 737 models offer a modern Domestic destinations: Dhaka-Chittagong-Cox’sbazar-
flight deck using the most advanced navigation Sylhet-Syedpur
technology available today. The fleet is planning to International destinations: Kolkata.
expand soon with larger jet aircraft as Regent is Future destinations: Riyad, Jeddah, Dubai, Muscot,
expanding more international destinations reaching Kathmandu, Guwahati, Male, Kualalampur, Colombo,
beyond the borders of Bangladesh. With the tagline Bangkok, Singapore, Guangzhou.
"every little thing counts", Regent Airways reasserts its Holiday packages: Cox’s Bazaar, Kolkata
commitment to excel in airline service and be
recognized as a world-class airline from Bangladesh. US-Bangla Airlines
It is also noteworthy that Regent Airways is the The US-Bangla Airlines (USBA) Ltd is a dream
first airline from Bangladesh to have received approval project of US-Bangla Group- a leading business
for its Safety Management System Manual from the conglomerate of Bangladesh. The USBA acquired
Civil Aviation Authority of Bangladesh (CAAB) which initially two Bombardier built DASH 8-Q400 aircraft.
is an internationally acknowledged standard set forth by The 3rd DASH 8-Q400 aircraft was acquired and was
the International Civil Aviation Organization (ICAO). 26 June 2015. These are 76-seat high speed propeller
Across the fleet and for every single flight, Regent is aircraft which can fly at jet speed of 667 kilometers per
giving paramount importance to the safety of its hour. In fact it is the fastest propeller airlines aircraft
passengers. Regent is closely working with the and also one of the safest airlines with no record of any
International Air Transport Association (IATA) global fatal accident.
airline industry leading organization, which trains the US-Bangla Airlines started its journey on 17 July
airline staff in the areas of safety, security, and customer 2014 with motto Fly Fast Fly Safe. Amongst all the
service. Regent Airways has also planned to domestic airlines, currently we are operating maximum
Journal of Management Research and Analysis, January-March, 2018;5(1):61-68 64
Sharmin Sultana Economic growth of airlines industry: An overview of domestic airlines in
Bangladesh

number of flights, transported maximum number of Domestic destinations: Dhaka-Chittagong-Cox’s

passengers which is about 50% of the total domestic Bazar- Jessore-Barisal-Saidpur-Rajshahi.
traffic, to maximum number of seven destinations. International destinations: Doha, Kolkata, Bangkok,
From 17 July 2014 till 30 Nov 2014, the USBA has Kualalumpur, Singapore, Kathmandu, Muscot
conducted flights on 8138 sectors and carried 5, 11, 106 Holiday packages: Cox’s Bazar, Chittagong, Barisal,
passengers which is about 50% of the total domestic Rajshahi, Sylhet, Kualalumpur, Bangkok, Singapore,
traffic. Currently, US-Bangla Airlines operates four Kathmandu, Kolkata.
Boeing 737-800 aircraft and three Dash 8 — Q400
aircraft. Airline contribution Bangladesh economy
1. The USBA has been adjudged as "The Best Civil Aviation Authority, Bangladesh (CAAB)
Domestic Airlines" - for the year 2014 & 2015 by calculated, the combined annual market size of 2014
Bangladesh Travelers Forum. was worth USD 440 million, with 5.8million
2. They are the only Airlines to receive the ISO passengers and 2.3 lakh tons of cargo. As we can
9001:2008 Certification which conforms to observe, there is a positive correlation of the passenger
Universal Safety Oversight Audit Program. growth rate with the GDP growth rate. This is because
3. It has also been audited and certified by the of three broad reasons:
Chevron Company for their officials. A higher GDP equates to higher purchasing power,
4. The Airline's aircraft are being maintained by which incentivizes many to choose air travel within the
qualified and highly experienced foreign and local country as an alternative to trains and buses. Given that
Aircraft Maintenance engineers. the business environment is growing quite rapidly,
5. Their pilots are also highly professional and saving time is quite crucial.
experienced. Airplanes save atleast70% of a business
(Source: [Link] executive’s travel time. A higher GDP of ten means
[Link]/welcome/about_us) Higher FDI. Foreign nationals tend to choose air travel
over other means of transport.

Fig. 1

As we can observe, there is a positive correlation of the passenger growth rate with the GDP growth rate. This is
because of three broad reasons:
1. A higher GDP equates to higher purchasing power, which incentivizes many to choose air travel within the
country as an alternative to trains and buses.
2. Given that the business environment is growing quite rapidly, saving time is quite crucial. Airplanes save at
least 70% of a business executive’s travel time.
3. A higher GDP often means higher FDI. Foreign nationals tend to choose air travel over other means of
transport.

Journal of Management Research and Analysis, January-March, 2018;5(1):61-68 65

Sharmin Sultana Economic growth of airlines industry: An overview of domestic airlines in
Bangladesh

Table 1: Domestic skies: Scheduled air capacity in Bangladesh (non-stop departures; 2013)
Rank Airline Available Seats % Share % Change v 2012
1 United Airways (4H) 388,115 31.7 % 18.6 %
2 Biman Bangladesh 377,743 30.9 % (-43.9) %
Airlines (BG)
3 Regent Airways (RX) 349,092 28.5 % (-1.9) %
4 NovoAir (VQ) 108,930 8.9 % New Entrant
Total 1,223,880 - (-13.2) %
(Source: [Link]

Table 2: Domestic air capacity in Bangladesh (non-stop weekly departures)

Rank Airport Weekly Weekly % Capacity
Departures Seats
1 Dhaka Zia International (DAC) 175 13,887 46.8 %
2 Chittagong Patenga (CGP) 103 8,996 30.3 %
3 Sylhet Osmani International 27 4,127 13.9 %
(ZYL)
4 Cox's Bazar (CXB) 24 1,179 4.0 %
5 Jessore (JSR) 28 1,148 3.9 %
(Others) 8 328 1.1 %
Total 365 29,665 -
(Source: [Link]

Table 3: Domestic skies: Scheduled air capacity in Bangladesh (non-stop departures; 2013)
Rank Airport Available Seats % Share % Change v 2012
1 Dhaka (DAC) 587,156 48.0 % (-11.5) %
2 Chittagong (CGP) 381,317 31.2 % (-8.4) %
3 Sylhet (ZYL) 102,985 8.4 % (-43.7) %
4 Jessore (JSR) 84,750 6.9 % 11.3 %
5 Cox's Bazar (CXB) 46,395 3.8 % (-12.4) %
6 Saidpur (SPD) 9,918 0.8 % (-0.8) %
7 Rajshahi (RJH) 6,959 0.6 % (-7.8) %
8 Barisal (BZL) 3,697 0.3 % New Entrant
9 Ishurdi (IRD) 703 0.1 % New Entrant
Total 1,223,880 - (-13.2) %
(Source: [Link]

Table 4: International air capacity from Bangladesh (non-stop weekly departures)

Rank Airline Weekly Weekly % Capacity
Flights Seats
1 Biman Bangladesh Airlines (BG) 73 16,640 26.5 %
2 Emirates Airline (EK) 17 5,061 8.0 %
3 Jet Airways (9W) 21 3,360 5.3 %
4 Saudi Arabian Airlines (SV) 10 2,980 4.7 %
5 Qatar Airways (QR) 11 2,933 4.7 %
6 Air Arabia (G9) 17 2,754 4.4 %
7 United Airways (4H) 22 2,637 4.2 %
8 Dragonair (KA) 9 2,610 4.2 %
9 Thai Airways International (TG) 7 2,506 4.0 %
10 Flydubai (FZ) 14 2,240 3.6 %
(Others) 111 19,170 30.5 %
Total 312 62,891 -

Problems take a domestic tour from one city to another in our

High Fare: The fares of airlines are higher than trains country. The fare of U S Bangla and Novo air are quite
and buses. So, it is unaffordable for many people to higher than Biman Bangladesh and Regent Airways.
Journal of Management Research and Analysis, January-March, 2018;5(1):61-68 66
Sharmin Sultana Economic growth of airlines industry: An overview of domestic airlines in
Bangladesh

Customer Service: The on-board service of demands are high customers prefer low fare rate than
employees, employee behavior, body language high rates airlines.
sometimes becomes one of the determining factors of Promotional offers or frequent flyer packages: To
selecting air carrier. So, employee should focus on meet the current demand and to meet competitive
these. situation, the airline companies can offer some
Security: The main sensitive factor in airline is promotional offers on special occasion like Eid, New
security. Sometimes staffs don’t check passengers Year, Bangla New Year and Victory Day etc. Some
properly or many unchecked pedestrians roam around airlines offer frequent flyer packages sometimes. This
the airport. practice should be increased to get more customers.
Time management: Lack of time management is
experienced by passengers due to bad weather,
unavailability of air craft on time, less number of staffs 9.8 On-time performance
in aircraft are the reasons of this timing problem. People usually prefer airline than any other transport
Airport capacity: In Bangladesh, the main airport is because of fastness. People want to reach a destination
Hazrat Shahjalal International Airport. Other airports quickly by airline. So, airline companies should
are not that much well equipped and well maintained. maintain the time schedule properly.
The capacity to takeoff and landing many international
flights are unavailable in Chittagong, Cox’s Bazar or Conclusion
other airports. Aviation industry is a demanding industry now-a-
Problem in low demand routes: There are some days. As tourism industry is growing, the importance of
routes which are not much popular or demanding like airlines is also growing. It’s one of the sectors of
Dhaka-Chittagong-Dhaka or Dhaka-Cox’z Bazar- tourism industry too. This paper has examined the
Dhaka. So, the airlines companies face low profit in recent economic growth and current capacity of
some low demand routes but they have to bear the fixed domestic airlines industry in Bangladesh. It has also
cost. identified some problems regarding airlines industry in
Training: The employees of respective carriers, the Bangladesh and provides some recommendations to
staffs at airport counters all are should be trained overcome those. There were very few literature on this
properly in dealing with customer at any situation. topic so there is further good research scope on the
Sometimes due to customer behavior or less domestic airlines demand analysis and key selecting
responsiveness can reduce the number of passengers of criteria’s in domestic airlines in Bangladesh.
respective airline.
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Bangladesh

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25. Co-author: Sazzad Hossain, AVP and Taosif Amin Khan,
Junior Associate at Light Castle Partners
26. Do you want consumer/market data on your preferred
sector? Please fill out the form and we’ll get back:
27. [Link]
IcBYHc7BXTWOgXK-
LL_DU8BkTS73cXEdyaRF4rTo/formResponse
28. [Link]
insight-domestic-aviation-industry-bangladesh-part-1
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