Novoair Navigates Uncertainty Amid Suspension and Sale Speculations
Domestic airline Novoair has suspended all flight operations starting Friday, May 2, amid growing speculation that the airline may be on the brink of complete closure.
An official from the airline, speaking on condition of anonymity, confirmed to the media that the suspension is temporary. “The company has initiated the process to sell its five ATR aircraft currently in its fleet. This process is expected to conclude within this month. Aircraft inspection for sale began on Friday,” the official stated.
However, Chairman of the Civil Aviation Authority of Bangladesh (CAAB), Manzur Kabir Bhuiyan, said, “Novoair flights are not operating. We have spoken to their authorities. They say the suspension is due to financial reasons. They plan to resume operations after two weeks. It is uncertain what will happen if the financial issues are not resolved.”
According to sources, Novoair had stopped selling tickets as early as April 20. Following media reports, the airline briefly resumed ticket sales but suspended all flight operations again starting Friday. As of now, the option to purchase tickets through their online platform is disabled.
Previously, Novoair had announced plans to sell its existing aircraft and acquire new ones, including Airbus models, in order to expand operations into international routes. However, the airline is currently experiencing a severe financial crisis and has yet to secure any new investors, although discussions are ongoing.
Novoair has been operating domestic flights from Dhaka to destinations including Chattogram, Cox’s Bazar, Sylhet, Jashore, Saidpur, and Rajshahi. Due to low passenger demand, its only international route to Kolkata has been suspended since September last year.
A spokesperson for the airline stated that Novoair has been unable to proceed with its strategic plans. “There is a global shortage of aircraft available for lease. Additionally, strong competition from major airlines has made it difficult to purchase aircraft,” the spokesperson explained.
Earlier, Novoair Managing Director Mofizur Rahman told the media that a new investor is expected to join the airline’s board soon, with discussions at the final stage.
“If we secure new investment, we will not sell our aircraft to foreign buyers. In that case, our flight operations will not cease. Otherwise, we may have to suspend flight operations for three months. However, all employees and officers will continue to receive their regular salaries during this period,” he said.
Rahman noted that since its founding on January 9, 2013, Novoair has invested over USD 50 million in aircraft acquisitions and an additional USD 10 million in infrastructure and support equipment. With the exception of the 2018–2019 fiscal year, the airline has operated at a loss each year. The pandemic severely affected the airline’s business, while the Ukraine war and resultant price hikes have further disrupted operations. A shrinking domestic market and declining demand have compounded the challenges.
