HSIA 3rd Terminal: Biman’s monopoly set to end

The long-standing monopoly of Biman Bangladesh Airlines in ground handling services is set to end at the third terminal of Hazrat Shahjalal International Airport (HSIA), as authorities move to appoint a second operator to introduce competition and improve service standards.

Chairman of the Civil Aviation Authority of Bangladesh (CAAB), Air Vice Marshal Md Mostafa Mahmood Siddiq, announced the decision on Monday during an interaction with members of the Aviation and Tourism Journalists Forum of Bangladesh.

“A second ground handler will work alongside Biman at the third terminal,” he said.

“This will help create a competitive environment and improve service quality.”

According to the CAAB chairman, the Japanese consortium led by Sumitomo Corporation will have the authority to select the second operator.

The consortium is currently involved in the operation and management planning for the newly constructed terminal.

In October 2024, during the tenure of the interim government, Biman was given responsibility for ground handling services at the third terminal for an initial two-year period.

The decision followed lengthy discussions in which the appointment of a Japanese operator had also been considered, mainly due to concerns raised by foreign airlines over service quality and operational efficiency.

Eventually, Biman was given another opportunity to demonstrate its capability, although under strict performance conditions and for a limited period.

At present, Biman handles ground services for all airlines operating in Bangladesh and earns approximately Tk 1,000 crore to Tk 1,200 crore annually from the sector.

However, its services—particularly baggage handling—have long been criticised by passengers and airlines for delays, inefficiency and poor management, despite claims by airport authorities that standards have improved in recent years.

Japan deal to protect national interests
The CAAB chairman also spoke about ongoing negotiations with the Japanese consortium, assuring that Bangladesh’s national interest would be fully protected in the final agreement.

“We will ensure a fair deal that safeguards national interests. So far, nine rounds of discussions have been held,” he said, expressing hope that the agreement could be finalised within the next few months.

A bilateral meeting between Bangladesh and Japan was held on 3 April to discuss operational and financial matters related to the terminal.

However, several issues remain unresolved, including embarkation fees, upfront payments and revenue-sharing arrangements.

The consortium includes major Japanese organisations such as Japan Airport Terminal Company, Sumitomo Corporation, Nippon Koei and Narita International Airport Corporation.

Terminal opening timeline still uncertain
The third terminal has remained unused for nearly one and a half years due to disagreements over management structure and revenue-sharing arrangements between CAAB and its Japanese partners.

Siddiq said that once negotiations are completed, at least three more months will be required to finalise the agreement. This will be followed by a trial operation phase lasting between six months and one year.

“We expect a partial opening around six months after the test run begins,” he said, adding that the government is aiming for a 16 December launch target.

He also warned against rushing the transition process, noting that international studies show a high rate of failure in airport transitions when implementation is not handled carefully.

Maintenance, audit and security updates
Responding to concerns about idle equipment at the terminal, the chairman said contractor ADC has been carrying out regular maintenance and is capable of continuing support until late 2026, with a possible extension into 2027.

He added that if the Japanese consortium formally takes over operations, coordination with the contractor would be ensured to avoid disruption.

On regulatory oversight, he said the last audit by the International Civil Aviation Organization (ICAO) was conducted in 2018.

A scheduled 2024 audit was postponed due to security concerns. A preliminary ICAO team is now expected in October, while the full audit is likely to take place between mid and late 2027.

The CAAB chairman also confirmed that airport security has recently been strengthened following directives from Police Headquarters in response to fresh threat alerts.

He said all necessary security measures have already been implemented to ensure passenger safety and protect critical airport infrastructure.