Airfares now to be determined in taka, not USD
All airlines operating in Bangladesh must determine airfare in taka instead of dollar from July 1, according to a decision by the civil aviation ministry.
The move will bring relief to the flyers who have been paying more when the taka loses value against the dollar.
For all latest news, follow The Daily Star's Google News channel. Bangladesh Association of International Recruiting Agencies (BAIRA), Association of Travel Agents of Bangladesh (ATAB) and Hajj Agencies Association of Bangladesh (HAAB) welcomed the decision, saying that it will benefit the migrant workers.
The ministry circular issued recently by Deputy Secretary Rocksinda Farhana mentions that Bangladeshi airlines sell tickets in the currency of the countries in which they operate.
Similarly, Bangladeshi taka will determine airfares for passengers and cargo on all local and foreign flights, reads the circular.
Taking advantage of the devaluation of taka against dollar, different airlines or travel agents are unjustifiably charging more for air tickets, a high official of the ministry told The Daily Star.
For example, the official said ticket for different Middle East routes costs more in Bangladesh than in those respective countries.
Aviation industry insiders say only four countries in the world -- Bangladesh, South Korea, Indonesia and Taiwan -- let the US dollar determine the price of air tickets while the rest of the world uses their own currency to fix airfare.
"Compared to last year, plane tickets now cost 35 percent more as taka lost value against the dollar," said Abdus Salam Aref, secretary general of ATAB.
The ministry move will keep the prices consistent, he said, adding that there are different reasons behind the rising costs of airfare, but the high exchange rate of the dollar is a major one.
Tipu Sultan, joint secretary general of BAIRA, welcomed the move, but expressed doubt as to who will monitor the implementation of the decision.
HAAB President M Shahadat Hossain Taslim said, "Fixing airfare in dollars often created confusion, especially among the migrant workers."
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