Mounting Aviation Arrears: CAAB Owes More Than Tk 7,000 Crore

Bangladesh’s Civil Aviation Authority (CAAB) is owed more than Tk 7,000 crore in combined aeronautical and non-aeronautical charges from five domestic airlines, with Biman Bangladesh Airlines alone accounting for over Tk 6,000 crore of the outstanding amount.

A recent letter detailing the arrears up to June of this year was issued to the respective airlines, signed by Md. Anwar Hossain, Deputy Director (Finance) of CAAB. Aeronautical charges include aircraft landing fees, route navigation service charges, boarding bridge usage fees, and embarkation charges. Non-aeronautical charges encompass ground handling, check-in counter rentals, car parking, and aviation catering service-related fees.

According to CAAB sources, among domestic carriers, US-Bangla Airlines and Air Astra currently have no outstanding dues. However, state-owned Biman Bangladesh Airlines stands as the largest debtor. The total payable amount from Biman to CAAB is Tk 6,068.54 crore. Of this amount, the principal bill is Tk 745.52 crore, VAT is Tk 528.37 crore, and income tax is Tk 0.51 crore. Additionally, due to prolonged non-payment, a surcharge totaling Tk 4,794.13 crore has been added to the principal amount.

For Novoair, which remains operational, CAAB’s outstanding claims stand at Tk 25.15 crore, including Tk 18 crore as principal and Tk 3.60 crore in VAT.

United Airways owed Tk 391.34 crore at the time it ceased operations on 5 February 2016. In 2023, the carrier proposed that the government waive Tk 300 crore in surcharges and allow it to settle the principal Tk 55 crore; however, the Ministry of Finance rejected the proposal.

GMG Airlines, which began operating international flights in 2004, ceased operations in 2012 and never returned despite announcing a comeback the following year. At the time operations were suspended, GMG owed nearly Tk 200 crore to CAAB. That amount has now accumulated to Tk 411.81 crore.

Regent Airways, which halted flights during the first wave of the COVID-19 pandemic in March 2020, had owed Tk 283 crore to CAAB at that time. The outstanding amount has since increased to Tk 454.61 crore.

CAAB has issued multiple reminders to the airlines to clear their dues, but the majority of the arrears continue to remain unsettled.