Deal faces test of fair competition
Bangladesh’s aviation sector is facing important questions over competition, investment and passenger interests as the government moves towards operationalising the third terminal of Hazrat Shahjalal International Airport (HSIA), with a proposed 15-year restriction on competing airports emerging alongside a race among four international companies for its ground handling contract.
The proposed operating agreement with a Japanese consortium reportedly includes a clause preventing other civilian airports within a 100-kilometre radius of HSIA from undertaking commercial operations for 15 years.
At the same time, four major international aviation services companies have been shortlisted to provide ground handling services at the new terminal, raising expectations of foreign investment, job creation and improved passenger services.
Sources familiar with the project confirmed the proposed restriction to the media on condition of anonymity, saying it was included in the draft agreement with the Japanese consortium. However, the agreement has yet to be finalised.
Under the proposed provision, another airport could be planned or constructed within the specified area, but it would not be allowed to begin competing commercial operations during the 15-year period, according to media reports.
The restriction has drawn attention to Bangladesh’s long-term aviation needs, particularly as the Civil Aviation Authority of Bangladesh (CAAB) has identified the need for another international airport near Dhaka to accommodate rising passenger demand.
CAAB projections show that annual passenger traffic at HSIA could reach around 33 million by 2045, against an estimated capacity of 24 million even after the third terminal and two proposed pier extensions become operational.
The authority has also noted that rapid urbanisation around the existing airport has made it difficult to construct a second independent runway or undertake further infrastructure expansion.
A CAAB progress report dated 28 October said negotiations with the Japanese consortium had been completed, although the operating agreement remained unsigned.
The government is targeting 16 December for the partial opening of the third terminal.
Meanwhile, four international aviation services companies have been shortlisted by the Japanese consortium for ground handling operations at the new facility.
The shortlisted companies are UK-headquartered Menzies Aviation, Switzerland’s Swissport, Türkiye’s Çelebi Aviation Holding and UAE-based dnata.
“We have received the names of four shortlisted companies from the Japanese consortium. We will now assess their security and regulatory eligibility and share our findings with the consortium, which will make the final selection,” CAAB Member (Operations and Planning) Air Commodore Abu Sayeed Mehboob Khan told the media on Tuesday.
“Once the consortium selects an operator, the company will have to apply to CAAB for a ground handling licence. We will then evaluate its proposed services, equipment, facilities and operational capacity to determine whether it meets the required standards,” he added.
The move is expected to introduce competition alongside Biman Bangladesh Airlines, which has long dominated ground handling services at the country’s busiest airport.
Among the shortlisted firms, Menzies Aviation has proposed investing more than $12 million in modern ground support equipment, operational technology and workforce training.
It has also pledged to create over 1,000 direct jobs, with 99 per cent of recruitment targeted locally, and an estimated 4,500 indirect employment opportunities through suppliers, transport providers and other supporting businesses.
The company operates at approximately 350 airports in 65 countries and employs around 65,000 people.
Swissport operates at 312 airports across 49 countries, with a workforce of around 63,000. The Swiss company is reportedly pursuing the Dhaka contract in partnership with Bangladesh’s Rhythm Group.
UAE-based dnata, part of the Emirates Group, provides aviation services in 35 countries, although its proposed investment and employment plans for Dhaka have not been publicly disclosed.
Türkiye’s Çelebi Aviation has outlined plans to invest in electric ground support equipment and create between 1,000 and 1,500 local jobs if selected.
It has also indicated that it could initially deploy equipment from its international operations to avoid delays. The company operates at more than 60 airports in five countries and employs around 9,000 people.
The selection process comes amid longstanding passenger complaints over baggage delivery delays, inefficient aircraft turnaround and inconsistent ground handling services at HSIA.
Former CAAB chairman Air Vice Marshal M Mofidur Rahman said service quality should take precedence over the international reputation or size of the selected company.
He called for clearly defined performance targets covering baggage handling, aircraft turnaround and overall operational efficiency, alongside regular monitoring and penalties for failure to meet contractual obligations.
“Baggage delivery within the stipulated time, aircraft turnaround time and overall service quality must be regularly monitored. Penalties must also be enforced if the operator fails to meet the terms of the contract,” he said.
“Otherwise, changing the operator will not reduce passengers’ suffering.”
The proposed airport restriction and the selection of a foreign ground handling operator have therefore placed broader questions of public interest at the centre of the third-terminal project.
Ensuring adequate airport capacity, encouraging investment, creating local employment and delivering reliable passenger services will remain crucial to securing long-term benefits for Bangladesh’s aviation sector.
