Bangladesh airport fee hike could raise airfares
Airline tickets in Bangladesh could rise further after the Civil Aviation Authority of Bangladesh (Caab) floated a plan to raise several aeronautical charges by up to a third.
Proposed fee structure
The draft, obtained by The Business Standard, outlines higher fees for aircraft landing, passenger boarding bridges, route navigation and out-of-hours airport use. It also suggests steeper international and domestic embarkation charges.
Landing fees would increase 25 percent for both international and domestic flights, with rates tied to aircraft weight. For a plane under 10 tonnes, the charge would rise from $5.25 to $6.56 per 1,000 kg.
Heavier aircraft in the 100-tonne to 300-tonne bracket would see fees climb from $12 to $15 per 1,000 kg on international routes and from Tk188 to Tk235 per 1,000 kg on domestic services.
Passenger boarding bridge fees are set for a comparable rise, except at Dhaka’s Third Terminal. The first two hours would go from $100 to $125 for aircraft under 100 tonnes, and from $250 to $312.50 for those over 300 tonnes.
Charges for operations beyond notified airport hours would also rise. International hourly facility fees would jump 27 percent, from $225 to $285, while domestic fees would climb 33 percent, from Tk4,500 to Tk6,000 per hour.
Navigation use after regular hours would increase from $90 to $115 per hour, and route navigation fees would see a 10 percent uplift, moving from $420 to $462 for aircraft in the 100-tonne to 200-tonne range.
Airlines warn of fare impact
Carrier representatives say the added costs could erode already thin profit margins and push ticket prices higher. US-Bangla Airlines spokesperson Kamrul Islam warned that higher charges could curb passenger growth and delay fleet expansion.
He noted that Bangladeshi airlines already pay more for landing, parking, security and navigation than peers in the Middle East and Southeast Asia, including Singapore, Kuala Lumpur, Bangkok and Guangzhou.
“To keep airfares competitive, there must be scope to control major cost components, particularly aviation charges and jet fuel prices,” Islam said, adding that volatile fuel costs compound the pressure.
Domestic embarkation fees could quadruple, moving from Tk25 to Tk100 per passenger. International embarkation would rise from Tk500 (about $4) to $6 per departing traveler, with the Third Terminal slated for a $12.50 fee.
Helicopter operators would also feel the strain.
In the broader context, Bangladesh’s air travel market has struggled to recover from the pandemic-induced price spikes that doubled or tripled fares. The sustained high costs limit mobility for overseas workers, a key demographic for many routes.
Caab defends the proposal by pointing to a sharp rise in its operating expenditure, which grew from Tk1,186 crore in FY16 to Tk3,242 crore in FY26. Aeronautical charges now account for roughly 60 percent to 65 percent of its revenue.
The regulator says the existing fee schedule cannot fund upcoming projects, including an estimated annual debt service of Tk1,250 crore for the newly built Third Terminal, plus investments in taxiways, aprons, cargo facilities and ICAO-standard communication systems.
Travel agents have observed that ticket syndicates continue to inflate fares on popular labor routes despite a ministry directive for transparent pricing. One-way economy tickets to Jeddah currently range from Tk65,000 to Tk70,000, according to a Dhaka-based agent.
Caab member Mohammad Nazmul Hoque stated that no formal proposal has been submitted to the Ministry of Civil Aviation and Tourism. Aeronautical charges are typically reviewed every 7 to 10 years, with the last revision in 2013.
A previous revision proposed by Caab in 2021 was not implemented by the ministry.
Impact on helicopter operators and passengers
Mahmudul Haque Piaru, a Dhaka-based travel agent, noted that landing, parking, and operational charges, combined with fuel costs, form the backbone of airline expenses. He said the government must balance airlines’ operational costs with public affordability before revising these rates.
