Proper policy support crucial to uplift  battered aviation sector: Stakeholders

The aviation sector needs proper policy support on their road to recovery from the damages caused by the impact of Covid-19, said stakeholders in an event on Thursday. 

The operational costs of airlines and helicopters have also increased as jet fuel prices are increasing every month, they said in a journalists' workshop titled "Aviation Industry in Bangladesh: Prospects and Challenges" organised by the Aviation Operators Association of Bangladesh (AOAB) at the Daily Star Centre. 

Apart from this, due to uneven competition between public and private operators, customs complications, and various fees and surcharges set at high rates by the Civil Aviation Authority Bangladesh (CAAB), the entrepreneurs of this sector have fallen into a great crisis.

"While we are suffering from Covid-19 impact, the government imposed 15% VAT in the current fiscal year for import of aircraft spare parts. Besides, we have to pay 5% custom duty for import of aircraft, 5% advance tax and 5% advance income taxes (AIT)  for parts, and 5% AT for engine whereas there are no such duties and taxes in India, Singapore and Malaysia," Mofizur Rahman, secretary general of AOAB and managing director of NOVOAIR, said.

"The price of jet fuel was Tk64.50 per litre last year while it is now Tk101.75. Earlier, the private operators accommodated 80% of domestic passengers. But due to increasing jet fuel prices in January, we had to increase the fare which negatively affected our passenger numbers," he added. 

He said their passenger load was not only 50%.

At the same time, Mofizur said, "Where fares on international routes have increased by 50% in the last decade, our fares have decreased by 61%," said Mofizur, adding that "in this situation, we do not want subsidies, but we want policy support so that the devastated aviation sector can turn around."

Captain Lutfor Rahman, a director at US-Bangla Airlines said, "Normally, fuel and oil costs covered around 33.4% of the total expenditure of airlines. But for the last one year, it has accounted for 50% of costs." 

Speakers said a concerted effort should be taken to adopt and implement a plan in coordination with the ministries concerned and the entrepreneurs of this sector. 

While presiding over the event, Anjan Chowdhury, president of AOAB, said, "Our neighbour India is moving forward in the aviation sector. They have revolutionised the sector, while we have been sleeping. Their private sector is skyrocketing with government support to sustain it."

"The mindset of our policy makers has not yet changed that way," he said, highlighting that the sector could also be used to export skilled manpower such as technicians, engineers and pilots. 

He also expressed regret that even after three years, an elevated helipad guideline could yet be made. 

Kazi Wahidul Alam, editor, The Bangladesh Monitor, said, "If the government can quickly open the closed airports including Ishwardi, Shamsernagar, Bogura, then domestic airlines will be able to recover."