Biman makes nine arguments for full ground handling rights

Biman Bangladesh Airlines wants full responsibility for passenger ground handling at the third terminal of Hazrat Shahjalal International Airport. However, under the government’s plan, Biman will handle a maximum of 50 percent of the ground handling for international airlines at the terminal. The remaining portion will be assigned to a Japanese company. Seeking a reconsideration of this limit, the national flag carrier presented nine arguments to the Ministry of Civil Aviation and Tourism on August 5.

Biman argues that if its capacity is restricted to 50 percent even before operations begin, it will not have an equal opportunity to compete with the foreign company. Instead, it says its capacity should be assessed by allowing it to operate all ground handling at the new terminal for a specific period. After that, a decision could be made to appoint a second company if necessary.

The third terminal was built with Japanese assistance. Japan provided low interest loans and technical support for the project. From the beginning, Japan has wanted a Japanese company to provide the ground handling services. In addition, Biman currently provides ground handling services at the other two terminals of Shahjalal International Airport. There have been various complaints about these services. Ground handling covers most of the work that must be carried out on the ground between an aircraft’s landing and its next takeoff.

According to information in Biman’s letter, ground handling at Terminal 3 was discussed at a tripartite meeting involving the ministry, the Civil Aviation Authority of Bangladesh (CAAB) and Biman Bangladesh Airlines. The meeting was held on July 22 and was chaired by the minister. At the meeting, Biman learned that there was a plan to appoint a foreign ground handling company alongside Biman. While the foreign company could handle ground services for up to 100 percent of flights, Biman was being considered for a 50 percent limit.

Biman says this would mean that capacity would be determined administratively instead of through competition based on efficiency, performance and service quality. Neither Biman nor the proposed foreign company has yet had the opportunity to operate at Terminal 3 and demonstrate its capabilities. Biman also argues that the problems currently faced at Terminals 1 and 2 because of infrastructure limitations would not necessarily apply in the same way to the modern infrastructure of Terminal 3.

The letter also states that Biman has already made major investments in recruiting and training personnel and purchasing modern ground support equipment (GSE) for Terminal 3. If its operations are limited to 50 percent, these investments will not be fully utilized. This could hinder the effective use of state resources and create a risk of financial losses.

The letter also states that ground handling is one of Biman’s major sources of income. According to Biman, it currently handles 100 percent of the ground handling at Terminals 1 and 2. The sector contributes about 13 percent of the company’s total revenue. If Biman’s share is limited to 50 percent, the average profit from this sector could fall from Tk 1,175 crore to Tk 843 crore in fiscal year 2026 to 27. That would mean a decline of Tk 332 crore.

Biman fears that the profit could fall to Tk 347 crore in fiscal year 2027 to 28. This would create a shortfall of Tk 828 crore. The airline fears that lower income would make it difficult to repay aircraft loans and cover salaries for officials and employees as well as the costs of new personnel and ground support equipment. The state-owned company could then become dependent on the government.

Biman has also argued that the company should not be allowed to reach such a situation after operating for 54 years through its own income.

As an example of its capabilities, Biman has also pointed to the limitations of Terminals 1 and 2. It currently operates despite having only eight boarding bridges, a narrow baggage belt area and time consuming and costly ground handling operations from remote bays. The letter also mentions Biman’s internationally certified training center, trained personnel and modern ground service equipment.

Meanwhile, tender documents, a request for proposal and a draft concession agreement for the operation of Terminal 3 have been provided to the Japanese Sub Working Group (SWG). The draft agreement states that Biman Bangladesh Airlines will handle a maximum of 50 percent of passenger ground handling.

Changing this limit would require new negotiations with the Japanese SWG and amendments to the concession agreement. This could delay the schedule for completing the agreement.

Aviation expert Wing Commander (Retd.) A T M Nazrul Islam said the capacity of Biman to handle 100 percent of the ground handling at Terminal 3 should be assessed based on actual operations and efficiency. If Biman has the capability, he said, it would not be appropriate to hold back the national flag carrier simply because of a predetermined limit.

Civil Aviation and Tourism Minister Afroza Khanam Rita told Agamir Somoy, “Biman is fully capable of providing ground handling. However, since negotiations on the matter are still ongoing and Japan is also jointly involved with us, a 50 50 arrangement has been made. Biman can gain further capability by receiving training from Japan.”

Biman, however, says the proposed 50 percent limit on its ground handling operations at Terminal 3 needs to be reconsidered to ensure national interests, protect state investment, maintain the airline’s long term financial viability and ensure fair competition.