Foreign competitor worries local airlines

The Civil Aviation Authority of Bangladesh (CAAB) is likely to approve Wizz Air Abu Dhabi, a low-cost air operator, to operate flights between Dhaka and Abu Dhabi.

Wizz Air is originally a Hungarian multinational ultra-low-cost carrier with its head office in Budapest.

While Wizz Air Abu Dhabi was founded in 2019 as Wizz Air's UAE subsidiary, the airline is a joint venture with state-owned Abu Dhabi Development Holding, ADDH, which owns 51 percent of the company's share.

Flights are operated from Abu Dhabi International Airport to destinations in Europe, Asia and Africa.

According to sources, CAAB and a delegation of the General Civil Aviation Authority (GCAA), an autonomous body to oversee and regulate all aviation-related activities in the UAE, are set to finalise the expansion of the aviation agreement between the two countries during the two-day visit of GCAA in Dhaka on May 15.

"This (deal with Wizz Air) is unprofessional in terms of aviation manners. CAAB should consult with Biman before taking such a decision, as it may conflict with the country's interests."

— Shafiul Azim, Biman Managing Director and CEO

However, aviation insiders said CAAB should have discussed with different stakeholders, including Biman and US-Bangla Airlines, who are operating flights in the UAE, before permitting other UAE airlines.

Five airlines of the UAE, including Emirates, Etihad Airways, FlyDubai, Air Arabia, and Air Arabia Abu Dhabi are operating 133 flights weekly from Dhaka at present.

Besides, Biman Bangladesh Airlines, the national flag carrier of Bangladesh, and private operator US-Bangla is also operating flights to UAE.

Aviation insiders said CAAB has already given temporary operating permission (TOP) to Wizz Air Abu Dhabi to operate seven weekly flights from Chattogram.

Local airlines said Wizz Air Abu Dhabi usually offers predatory flight prices to customers to grab the market, which may drive the local airlines from the market.

To cite an example, they said Wizz Air Abu Dhabi has already announced that it will soon be entering Pakistan, India and other countries in the region, aiming to tap into the high demand for air travel between South Asia and the UAE.

The entry of Wizz Air Abu Dhabi into the market is expected to pose a tough challenge to the existing airlines operating on the Dhaka-UAE route.

Last year, Wizz Air transported over 1.2 million passengers on over 6,000 flights.

Officials of local airlines have expressed frustration over the proposed introduction of Wizz Air, saying CAAB is working against the interests of the country.

Biman Managing Director and CEO Shafiul Azim, who is currently in London, said, "This (deal with Wizz Air) is unprofessional in terms of aviation manners. CAAB should consult with Biman before taking such a decision, as it may conflict with the country's interests."

Kamrul Islam, general manager of public relations, US-Bangla Airlines, said the government should allocate frequency to the UAE-based airlines based on the capacity of the local airlines.

"Otherwise, we will not be able to compete," he added.

Aviation Expert Kazi Wahidul Alam told The Daily Star that the introduction of Wizz Air Abu Dhabi will create uneven competition.

"Air service agreements between the two countries should be made reciprocally. Wizz Air's network frequency is high, so the airline may shake up the country's aviation market, driving domestic airlines towards a loss," he added.

An inter-ministerial meeting on the matter will be held this week and CAAB may invite domestic air stakeholders for consultancy, said a CAAB official, requesting anonymity.

Despite repeated attempts, CAAB Chairman Mafidur Rhaman could not be reached over the phone for his comments on the matter.