No taka-dollar adjustment by Biman in 10 months

Biman's inaction to adjust taka's exchange rate against dollar over the past ten months have caused a huge amount of financial loss to air passengers and air shippers to and from Bangladesh, industry people said.
Biman Bangladesh Airlines fixed dollar's rate at Tk 69.50 in May 10, 2007 and since then it has been charging at that rate, although during the 10-month period the greenback's monthly average rate was Tk 68.66, according to a Bangladesh Bank figure.
According to the International Air Transport Association (IATA) guideline, the national flag carrier in each country fixes local currency's exchange rate against dollar and the other airlines follow the rate.
The national carriers in other countries frequently adjust the rate in line with fluctuations.
Industry sources said around 35 lakh inbound and outbound passengers in Bangladesh annually contribute tariffs of around Tk 5,000 crore, and around 15,000 tons of cargoes are transported to and from Bangladesh, generating Tk 1,200 crore.
According to the industry people, out of the total market size Biman's market share in terms of passenger is 30 percent and it is 20 to 25 percent in terms of cargoes.
Saudia, Emirates, Singapore, Thai and Gulf airlines are the other big players carrying passengers and freights to and from Bangladesh.
Nurul Amin, MD of Tower Freight Logistics, said due to Biman's inaction to adjust the exchange rates freight forwarding industry lost around Tk 90 crore during the period.
He said the exchange rates ranged between Tk 66.50 and Tk 67.50 during the period.
When contacted, Biman's Director (Marketing and Sales) AMM Mosaddeq Hossain said Biman fixes the exchange rate based on the selling price of dollar at Sonali Bank, not on its buying price.
He said the exchange rate did not fluctuate significantly during the past ten months.
Mosaddeq said Sunday's (yesterday) selling price of Sonali Bank was Tk 69.40. But as per IATA guidelines the national flag carriers should follow the banks' buying prices, said Nurul Amin.
Ehsanul Karim, a vegetable exporter who exports to the UK by Biman, said he is making a huge loss due to the Biman's inaction.
“I am the worst sufferer as the profit margin is reducing as Biman is not adjusting the exchange rate,” Ehsanul added.
Abirul Islam Faysal, a senior executive of a leading foreign airline, said Biman did not bring any adjustment in exchange rate but the fluctuation was not so significant.
He also said once Biman also did not bring changes when the rate crossed above Tk 69.50.
MA Muhaimin Saleh, president of Association of the Travel Agents Bangladesh (ATAB), said Biman did not adjust the rate to maximise its revenue, as it gets additional money against each dollar, apparently failing to realise that this is causing loss to its passengers and shippers.
Civil aviation ministry sources said the government is considering revision of the exchange rate and has already asked Biman to review the matter soon.