Bangladesh aviation regulator weighs airport fee increases for airlines

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Bangladesh airport fee increases

Highlights

Bangladesh Civil Aviation Authority proposes 25% increases in landing fees and passenger boarding bridge charges for both domestic and international flights.
International landing fees would rise from $5.25 to $6.56 per 1,000 kg for small aircraft and from $12 to $15 per 1,000 kg for large aircraft, with similar increases on domestic routes.
Additional proposals include a 10% hike in route navigation charges and shifting overflight fee collection to Caab headquarters, raising airline operating costs and potential ticket prices.

Proposed tariff revisions across airport services

The Business Standard reports that the Civil Aviation Authority of Bangladesh is preparing a plan to raise several airport-related charges, with landing fees for both international and domestic flights set to increase by 25% if approved.

Under the proposal, international landing charges for aircraft weighing up to 10 tonnes would rise from $5.25 to $6.56 per 1,000 kg. For international aircraft weighing more than 100 tonnes but not more than 300 tonnes, the rate would increase from $12 to $15 per 1,000 kg. For domestic flights in the same upper weight category, the charge would rise from Tk188 to Tk235 per 1,000 kg.

Passenger boarding bridge fees would also increase by 25%, except at Dhaka airport's Third Terminal. The hourly charge for the first two hours would rise from $100 to $125 for aircraft weighing under 100 tonnes, and from $250 to $312.50 for aircraft weighing 300 tonnes or more.

Charges for flights operating beyond notified airport hours would climb more sharply. The hourly airport facility fee for international flights would rise by 27%, from $225 to $285, while the domestic rate would increase by 33%, from Tk4,500 to Tk6,000. The hourly charge for using air navigation facilities beyond designated operating hours would also rise from $90 to $115.

Cost pressure for airlines and revenue shift

Caab has separately proposed a 10% increase in route navigation charges. For international aircraft weighing more than 100 tonnes but not more than 200 tonnes, the fee would increase from $420 to $462, while aircraft weighing more than 200 tonnes would pay $495, up from $450.

The plan also recommends transferring overflight charges, paid by airlines that pass through Bangladesh's airspace without landing, from Dhaka airport's account to Caab headquarters. If implemented, the broader set of fee increases would add to airline operating expenses and could put further pressure on ticket prices in Bangladesh's aviation market.

United Nigeria Airlines’ commercial paper fundraising plan was previously covered by our publication, outlining the carrier’s aim to raise up to N20 billion to support fleet expansion and increase operating capacity. The article noted that the funds could help broaden its domestic route reach and potentially intensify competition in Nigeria’s local air travel market.

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