Biman picked to handle ground services at Dhaka airport’s third terminal for 2 years

Biman Bangladesh Airlines has been chosen to handle ground services at the newly constructed third terminal of Hazrat Shahjalal International Airport for two years. 

This decision comes following prolonged discussions during the previous administration, where the possibility of assigning the role to a Japanese firm was explored due to concerns raised by foreign airlines regarding the national carrier's service quality.

However, the interim government has now given Biman the opportunity to demonstrate its capability once again, albeit for a limited tenure and under specific performance conditions.

"Biman Bangladesh Airlines Ltd will be primarily assigned to deliver ground handling services (for both passengers and cargo) under the Concession Agreement for Terminal 3. 

"Accordingly, a Service Level Agreement (SLA) will be executed between Biman Bangladesh Airlines Ltd and the Private Sector Partner (PSP)," read a letter signed by the Md Ali Azam Al Azad, director (investment promotion), Public Private Partnership (PPP) Authority under the Chief Adviser's Office. 

The letter, issued on 24 October this year, also stated that Biman Bangladesh Airlines Ltd may enter into an agreement with the PSP for ground handling (both passenger and cargo) based on the KPIs set by the PSP for the first two years of the Concession Agreement.  

It also mentioned that if Biman fails to meet the KPIs for ground handling (passenger and cargo) based on the evaluation during these two years, the PSP will be allowed to appoint an internationally renowned foreign company as a second ground handler in addition to Biman.

The decision has been approved by the chief adviser for the PPP project titled "Operation and Maintenance of 3rd Terminal at Hazrat Shahjalal International Airport (HSIA)," according to the letter.  

Earlier in July last year, then Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal M Mafidur Rahman said Japan will get the ground handling work at the third terminal. 

"Japan has shown interest in getting the ground handling work and the government has decided to give them the job," said the former CAAB chairman, adding that the terms of the work will be determined through a Public-Private Partnership (PPP) for the project.

Currently, Biman Bangladesh Airlines, apart from its own flights, carries out ground handling services for all international airlines at all airports in the country, with an annual turnover ranging from Tk1,000 to Tk1,200 crore. 

But their services, such as luggage handling, are questioned by passengers and stakeholders, criticising delays and inefficiencies. However, according to the Dhaka Airport Authority, the delay in receiving luggage has significantly improved in the last year.

Biman's former managing director Shafiul Azim also seemed confident in the carrier's expanded capacity, reinforced by newly added equipment.

In January this year, he said, "Around 3,600 motorised and non-motorised pieces of equipment, valued at Tk1,000 crore, have been added to Biman's Ground Support Equipment (GSE) department in the last one year." 

Biman officials said with over 57,000 flights handled in 2023, Biman's GSE department is prepared to serve the third terminal with a team of 600 personnel, along with 376 motorised and 4,000 non-motorised equipment. 

They said procurement of 105 new equipment is under process and will be added within December, further strengthening the carrier's ground handling capacity.