Passengers pay, foreign airlines suffer for Biman's ground handling monopoly

Infographic: TBS

Foreign airlines operating at Dhaka's Hazrat Shahjalal International Airport are being forced to hire their own manpower for passenger and cargo handling despite them paying Biman Bangladesh Airlines to manage these services resulting in higher airfare costs.

According to the Airlines Operators Committee (AOC), airlines pay Biman, the sole ground handling agent at the airport, $2,200-$6,000 per flight for ground handling services and an additional $0.07 per kilogram for cargo operations.

Despite these fees, Biman provides an airline with only two to three ground handling staff, which is not enough to operate their flights, the AOC says.

Ground handling services include passenger boarding, baggage handling, cargo management, and various aircraft support operations.

Higher cost for operating in Dhaka

Airlines claim that ground handling charges at Dhaka airport are much higher than in airports of developed and even regional countries. This results in significantly increased operational costs for foreign airlines compared to their counterparts in neighbouring countries.

The cargo manager of a leading foreign airline at Dhaka airport told TBS, "For a 100-tonne Boeing 777 aircraft, cargo charges in neighbouring countries like India, Pakistan and Sri Lanka range between $3,500 and $4,000. However, for the same volume, cargo charges at Dhaka airport can go as high as $20,000."

The airlines are particularly concerned because Biman has recently been awarded ground handling services for the newly built third terminal at Dhaka airport, just as it handles operations at terminals one and two.

To resolve the issues, the AOC has proposed to the Ministry of Civil Aviation and Tourism for the appointment of multiple ground handlers to improve service quality through competition.

Extra burden on foreign airlines

According to airline sources, the 38 foreign carriers operating at Dhaka airport have employed around 1,150 support staff, roughly eight times more than if they weren't compelled to hire additional manpower for ground handling.

For example, the UAE-based airline Air Arabia has around 40 employees – 28 for passenger services and 12 for cargo operations – at Dhaka airport.

Airline officials say the number should not exceed a maximum of four employees based on the number of flights that require ground handling services.

"To maintain standards and safety, all airlines are forced to recruit a significant number of their own staff, which for some airlines reaches up to 60-70 employees. Additionally, we have to train them," Dilara Hossain, airport operations manager of Air Arabia, Bangladesh, told TBS.

"This increases operational costs, which directly impacts ticket prices," she added.

Dilara, also the chairperson of the AOC, said, "Appointing multiple professional ground handling agents will not only improve the reputation of the airport but also have a positive impact on the nation."

She added, "We have received numerous promises from the current monopoly ground handling agent over the years, but very few have been fulfilled."

Qatar Airways Cargo Manager Suhed Ahmed Chowdhury said, "Even though we pay ground handling fees. Qatar Airways has appointed 70 staff at the airport. We have to perform tasks with our own staff that Biman is supposed to handle."

"Now, we do not demand much; we just want them to honour the agreement we have with Biman for ground handling," he added.

High Airfare in Bangladesh Compared to Neighbours Hits Travelers

Airfares from Bangladesh remain higher than those of its neighbouring countries, according to sector insiders.

Since 1 December this year, foreign and local airlines have increased fares by around $100 due to high demand during the Umrah season, Mahmodul Hoque Pearu of Hoque International Tours and Travels told TBS on Thursday.

He mentioned that a Bangladeshi migrant travelling from Dhaka to Riyadh must pay between Tk55,000 and Tk77,000 for a ticket, depending on the timing of the booking, typically a month in advance.

However, the minimum fare from Kolkata to Riyadh is around Tk 10,000 cheaper than from Dhaka, he added.

The high airfare from Bangladesh is attributed to soaring demand, limited seat availability, and the alleged activities of a ticket syndicate driving up prices on the black market. Additional factors include the devaluation of the taka against the dollar, along with elevated operating costs, such as more expensive jet fuel, according to travel agents.

Biman denies allegations

However, Biman officials dismissed claims that it cannot provide proper services calling them "baseless and outdated".

"These allegations are part of a smear campaign by a vested quarter aiming to prevent Biman from continuing its ground handling operations," Bushra Islam, spokesperson and general manager (public relations) at Biman, told TBS.

She added, "We have recently hired new staff and are in the process of recruiting more. We are fully prepared to provide comprehensive services at the third terminal."

TBS tried to contact Biman CEO and Managing Director Safiqul Rahman over phone, but he did not respond despite multiple attempts.

Airport capacity to double: Can Biman handle it?

Dhaka airport's annual passenger and cargo handling capacity is expected to double when the third terminal goes into full operation. The airport's total annual passenger handling capacity, including the existing terminals, will reach 24 million.

Currently, it handles eight million passengers and 500,000 tonnes of cargo annually.

According to sources from the Ministry of Civil Aviation and Tourism, after the launch of the new terminal, which is scheduled to start operations in December next year, around 20 aircraft will be handled simultaneously.

Sources say Biman requires a total of 3,878 staff to operate the airport, but currently has only 2,494 employees. The airline will need to recruit and train an additional 1,384 people within next year.

On 1 December, Biman briefed the Ministry of Civil Aviation on its capacity and provided detailed plans for ground handling work including staffing, equipment, and staff training.

A significant portion of Biman's income comes from ground handling services with the airline earning around Tk1,500 crore in 2023 from this sector.

Ground handling challenges highlighted in AOC proposal

In addition to foreign airlines, passengers, particularly Bangladeshi migrants, have also expressed dissatisfaction with Biman's service during several public hearings organised by the Civil Aviation Authority of Bangladesh.

Addressing the issues in ground handling, the AOC presented a written proposal to the late Civil Aviation Adviser A F Hassan Arif on 2 December during an event on the third terminal at a Dhaka hotel.

The proposal highlights the point that the ground handling authority lacks a single point of contact. "Currently, we are required to communicate with multiple departments to obtain necessary services," it states.

Additionally, the proposal points out issues such as poor shift change management and a shortage of staff across all areas including check-in counters, gates, ramps, loading staff, and operators.

It notes that staff often leave at the end of their shift without replacements being available.

The AOC noted the absence of a punitive Service Level Agreement (SLA) between the ground handling agent and foreign airlines, and claimed it undermines service excellence and accountability.

It also expressed concerns over the lack of a safety culture, particularly regarding ramp safety practices for personnel and equipment, as well as a shortage of operators to manage equipment while docked with running aircraft.

Water for airlines 'not hygienic'

Additionally, the AOC highlighted that only eight airlines currently receive potable water from the ground handler as hygiene tests for the water carts have failed to meet satisfactory standards.

Airlines bringing water from base stations incur additional fuel costs due to payload, which ultimately impacts ticket prices, the AOC's proposal stated.