Round Table Conference on Private Airlines in Bangladesh

GM Quader Winding up the discussion at the round table on private airlines of Bangladesh, GM Quader, Minister for Civil Aviation and Tourism said that government would look into the problems of the airlines if it leads to the welfare of the passengers. Quader stressed the importance of improving air connectivity in the country and said private airlines should serve less important airports like Syedpur, Rajshahi, Barisal, may be with smaller aircraft. He assured that to help the private airlines minimising the operational cost, government will make landing and parking in these airports free. The minister agreed that human resources development is a prime need of the aviation sector and felt public-private sector could work together in this regard. Referring to the issue of poaching of pilot, the minister said "We can't force a pilot to refuse a better offer. Air Commodore Mahmud Hussain Chairman of Civil Aviation Authority of Bangladesh (CAAB), Air Commodore Mahmud Hussain said that as a regulatory body, has to be strict. We have enough of laws and these laws are to ensure safety, security and sustainability of country's aviation sector. He said that these laws are applicable equally to all. Significant safety concerns or Cat II were not imposed by us. We have to adhere to ICAO, FAA and Eurocontrol standards. The Chairman of CAAB agreed that there is lack of manpower and said CAAB is being restructured. It will take some time to get manpower, specially inspectors and supervisers. He sought cooperation and support of the private airlines to overcome the problem. About very liberal Air Services Agreements (ASAs), he said that these are negotiated at state level where relations between states take precedence. Frequencies are reciprocal. Air Commodore Mahmud Hussain said that the world will need 30,000 aircraft in the next 20 years. At least one billion professionals will be needed. We can produce very good, skilled professionals through knowledge-based training who will be able to take the advantage. Aviation academy can be set up at state level. There will be demand for them (airline professionals). Anti-poaching law (of pilots) is not morally right, he said adding if airlines cooperate this problem can be solved.We (CAAB and airlines) can sit together. Abdus Satter Nini Former Chairman of GMG Airline Nini Abdus Satter drew the attention of the authorities to the lack of structural regularity framework in the country and resulted problems for the private airlines. Nini said that much could have been done in the country's aviation sector. Growth in this sector takes its own time and has its own pains. The private airlines have reached a certain level and the growth would be fast if the problems are addressed. It is a young and weak sector. All of us (private operators) have started from scratch. Unless facilities and support are given local carriers will vanish. Regarding allocation of routes, he said there was always a protectionist attitude. Though Biman has been privatised, it is always considered first whenever domestic and international routes are allocated. There has been five-fold increase in domestic and three-fold increase in international flights_ but the number of staff and capability of Civil Aviation Authority of Bangladesh (CAAB) has not increased. There is a lack of qualified manpower, a huge shortage of pilots. The government is not looking at this as a problem. There can be an academy at government level. Foreign pilots still have to be brought in. They are brought in adhering to ICAO norms. Earlier we used to bring them in and receive validity. Their licences were then given six months validity. Now, we do not get that validity quickly. It must be remembered that we have to pay a high salary to them, pay for their hotels and conveyance. Letting him sit idle for two and a half to three months tells on our finances. It can be decided that if we bring in pilots from say US, Canada, Singapore and Malaysia, and not from say East European states we would receive validity quickly. Nini also demanded that there should be an anti-poaching law to discourage pilots from changing airlines_ serving us till this evening and joining another airline tomorrow morning. There may be a 120-day cooling period. Captain Tasbirul Ahmed Choudhury Chairman and Managing Director of United Airways Captain Tasbirul Ahmed Choudhury said weight of problems is making survial of private airlines difficult. Private airlines should not be made to collapse, before they are on their feet. Pointing to some critical problems Capt. Choudhury said that bringing in aircraft or spares has to be facilitated_ from the moment of opening LoI (Letter of Intent), passage through Customs and their putting to use. When companies sell the aircraft to us they make sure the aircraft is serviceable. They do not export the aircraft unless they are functional. We are the biggest victim of tax on spare parts and wheel. Airline wheels cannot be used in cars. About hiring foreign pilots, he said foreign pilots do not want to come because of the time taken here (to give their licenses validity) they become 'decurrent.' He demanded 'one desk' service. Capt Tasbirul Ahmed Choudhury said the future of private carriers is not good. United Airways served smaller airports but it did not work well with us, He mentioned about high ground handling charges and fees for using equipment like pushback and high loader. Mashruf Habib Mashruf Habib, Managing Director, Regent Airways said that his airline targeted to fly early in 2010, but could not launch before November 2010. It took us some time to comply with the new check list. He wondered why should there be a need for two clearances from two bodies under the same ministry. Technical knowledge and expertise is needed in CAAB. Stressing the need for developing local pilots and engineers, he said if we have an academy, this problem will come under control. Habib pointed towards difficulty regarding spares and said you need to have a good supply chain for spares. At present formalities like LC, getting delivery, Customs etc. making it time consuming and costly. Bringing in of spares has to be made easy. Biman has a bonded facility (for spare parts), he said and demanded similar facility for the private airlines. Habib also suggested cooperation among the airlines in regards to spare parts. Many airlines are doing so in US if they have the same type of aircraft. It saves costs. Ali Reza Iftekhar Ali Reza Iftekhar, Managing Director and CEO, Eastern Bank Limited said banks are now confident about financing airlines. Banks were shy. We did not have this confidence 15 years ago. We did not know how to finance. Banks are more confident even than they were three years ago. He said that his bank financed aircraft purchase of Biman and Regent and confidence level of the bank in regard to such deal has gone up. There are guaranteed passengers. So why planes will not be bought. There are tremendous opportunities in aviation in Bangladesh. No private entrepreneur failed in Bangladesh, he observed and said hedging of fuel price should be allowed. Tawfiq Uddin Ahmed President of Tour Operator's Association of Bangladesh (TOAB) Tawfiq Uddin Ahmed suggested cooperation among every stakeholder in the sector. Seeking greater intereaction with the airlines, he said tour operators and travel agents do not receive much cooperation from airlines. Raquib Siddiqi Lack of government cooperation, failure to update regulations as well as to nurture the new born airlines have stood in the way of growth of private sector aviation. The government considers their job done after according permission to operate. Airlines have to pass insurmountable odds at every step after receiving permission to operate. Absence of experience as well as lack of correct planning no doubt hinders the growth of the private sector airlines. Permission to operate flights in the private sector was first given in 1996. Since then Aero Bengal Airlines and Air Parabat dropped out, while GMG Airlines still continues fly achieving 90 per cent service reliability. It was joined by United Airways (BD) Ltd and most recently by Regent Airways. A revamped Best Air is set return to the sky again. The number of operating airlines is more than those who have dropped out. Conside-ring these the picture of surviving airlines are not that disappointing. The situation may improve if steps are taken to remove infrastructural problems. Financial institutions are still shy of financing airlines which require a huge amount of investment. There is no bar now in operating flights in the domestic sector. Go-ahead is also being given to operate flights on regional international routes. Civil Aviation Authority of Bangladesh (CAAB) has failed to update the regulations to meet the new realities. They also lack manpower, leading to delays in getting the work done. Changes made in India have led to a vibrant aviation sector. Only the authorities can explain as to why these changes did not take place in Bangladesh. The foreign airlines still carry 65 per cent of the passengers and 82 per cent of cargo. Kazi Zahurul Qyyum Kazi Zahurul Qyyum, Director, Airline Division, ExpoLanka Group, said manpower development and creation of job opportunities are the major challenges. We need to be focused on training of manpower. Recalling his 33 years of services in foreign airlines, he said we those who have worked in foreign airlines are willing to contribute (to bolstering the capabilities of CAAB). M Jahangir Media analyst M Jahangir, who moderated the roundtable, said the topic which was to discuss the problems of the private airlines was very timely. With prominent aviation professionals involved, the aviation sector was bound to grow in the country, but discussions and finding out solutions to the problems they are facing are crucial, if they are to succeed. Kazi Wahidul Alam Kazi Wahidul Alam, Editor, The Bangladesh Monitor and Chairman of DTM-2011 said that the roundtable was organized to highlight the problems of private airlines of the country. People engaged in aviation and tourism sector have done the impossible. He announced holding of similar roundtables on several topics in the future including ground handling in Bangladesh. Abdullah Al Hasan Taking part in the discussion Abdullah Al Hasan, General Manage Cargo of Biman said that Biman has a training centre where IATA related courses are conducted. Air Services Agreements (ASAs) may be responsible for foreign carriers carrying the lion's share, he said. Biman cooperates with tour operators, it handles groups. Ricky D Frick Ricky Frick, CEO of Best Air stressed the need of training one's own manpower. He also suggested that spare parts should be allowed to be brought in within three days and pooling of common equipment. Biman, Bangladesh Airlines cannot serve us if they do not have the equipment, he said about ground handling. Attention should also be paid to safty. Sudhakar Rao Sudhakar Rao, General Manager Bangladesh, Jet Airways, said problems here regarding operating to smaller airports are almost the same as in India. The Indian government followed a route dispersal policy. Landing and parking may be made free but airlines we have to operate to smaller airports for five years. Airlines were asked to fly to non-profitable routes line north-east India. Business has come and people and the country (India) have bene-fited.