12 grounded aircraft to go under the hammer

12 grounded aircraft, which have been lying idle in the parking lot of Hazrat Shahjalal International Airport for almost a decade, are set to go under the hammer. The Civil Aviation Authority of Bangladesh (CAAB) has completed all necessary procedures for auctioning off these abandoned planes.

These aircraft, belonging to four different companies, have become a source of concern for the authorities due to the accumulation of exorbitant parking surcharges amounting to a staggering Tk 850 crore. As the companies failed to clear their dues, and the planes lost their operational capability over time, the CAAB has decided to sell them through an auction process.

According to CAAB sources, eight aircraft of United Airlines, two of Regent Airways, one of GMG Airlines, and one of Aviana Airlines are lying in Shahjalal's parking lot in a grounded state for almost a decade. Letters were repeatedly sent to the owners to relocate the aircraft. But no one relocated them fearing having to pay the parking and surcharges.

The source said that in the last 11 years, the outstanding parking and surcharges for these 12 aircraft have exceeded around Tk 850 crore. The highest outstanding is owed by GMG Airlines, which owes CAAB Tk 360 crore. GMG Airlines suspended international and domestic flights in 2012 and never flew again. 

Besides, Regent Airways owes CAAB Tk 200 crore. Regent Airways closed in March 2020, although it had already suspended flights on several routes earlier. Apart from this, the outstanding parking charges and surcharges owed by United Airlines amount to Tk 355 crore. United Airlines, the only listed airline company in the country's stock market, has been closed since 2016. CAAB has now taken all kinds of preparations to recover the outstanding dues by auctioning off these aircraft.

Group Captain Muhammad Kamrul Islam, Executive Director of Hazrat Shahjalal International Airport, said, “We have completed all the steps required for auctioning off the abandoned aircraft. We also had a technical meeting where it was determined that these aircraft can no longer fly. Our seizure list has also been prepared. In addition, a letter has been sent from the CAAB Chairman's office to Bangladesh Bank, informing them that we have been unable to recover our revenue from these aircraft.”

He further said, “There is a plan to open the third terminal at Hazrat Shahjalal International Airport for passengers towards the end of this year. At that time, import-export activities in the cargo area will increase. So we need a lot of space. That's why preparations are underway to auction off these aircraft before the third terminal becomes operational.”

A CAAB official said, “The 12 abandoned aircraft have become a headache for us. Because of them, the airport has turned into a huge dumping station. An over-loaded situation has been created in the cargo village area. If these abandoned aircraft are removed, at least seven aircraft can be parked there. It will also make it easier to load and unload cargo aircraft.”

It is known that United Airlines started flight operations in the country in 2007. However, without any prior notice, the company suspended flight operations in 2016. Since then, their eight aircraft have been lying at the airport. As a result, CAAB has outstanding dues from United Airlines, including surcharges and other charges. Despite repeatedly sending letters to recover the dues over the past few years, CAAB has not been able to recover any money so far.

Later in 2022, the Bangladesh Securities and Exchange Commission (BSEC) reconstituted the board of the listed United Airlines company by appointing seven new independent directors. Among them, Kazi Wahidul Alam, editor of the aviation and travel periodical ‘Bangladesh Monitor’, was made the chairman of the board of directors. On January 3 last year, United Airlines held a combined annual general meeting (AGM) for seven years (2016-2022) on an online platform. At the AGM, the board members, formed in coordination with the independent directors, reiterated their commitment to bring the airline back into operation as soon as possible.

At that time, they had said that in the first phase, they planned to start cargo operations, followed by commercial flights within the next three years (by 2026). However, there has been no progress in their work in this regard over the past one year and four months. In fact, the board of directors is winding down its operations.

Members of the board of directors of United Airlines said that to restart United's operations, they need to renew the Air Operator's Certificate (AOC). But CAAB is not issuing the AOC as the outstanding dues have not been cleared.

According to CAAB sources, United Airlines owes CAAB Tk 355 crore. Of this, the principal debt is around Tk 55 crore, and the rest is surcharges. The AOC cannot be issued without clearing this amount. Although United had requested a waiver of the surcharge by writing to the Ministry of Finance, the ministry has rejected it. As a result, no door remains open for United.

Regarding these issues, Kazi Wahidul Alam, Chairman of the Board of Directors of United Airlines, said, “We had applied for a waiver of the Tk 300 crore surcharge. And we had said that we would pay the principal outstanding amount of Tk 55 crore in installments after the airline resumes operations. The Ministry of Finance did not agree to this proposal. As a result, we could not renew the AOC to operate the airline.”