By Tarek Alif 

More than a dozen foreign airlines are ready—or nearly ready—to launch flight operations to Dhaka, drawn by Bangladesh’s expanding aviation market, strong expatriate traffic, and the promise of a newly built, state-of-the-art third terminal designed to triple passenger capacity. Yet instead of welcoming new carriers, Bangladesh is watching the opportunity stall—because the terminal remains unopened.

The terminal is built. Airlines have responded. Demand exists. Yet the interim government has failed to complete the final operational and policy decisions required to make the facility functional—effectively freezing Dhaka’s aviation growth at a critical moment.

The third terminal at Hazrat Shahjalal International Airport (HSIA), built to international standards, was meant to ease congestion and signal Dhaka’s readiness for expansion. Instead, its continued closure has become the single biggest constraint on new airline entry.

Highly placed sources at the Civil Aviation Authority of Bangladesh (CAAB) told Aviation Express nearly 15 foreign airlines from the Middle East, Europe, East Asia, Central Asia and Southeast Asia are currently in various stages of engagement—ranging from formal applications and bilateral negotiations to informal expressions of interest.

“The demand side is strong, and the airlines are there,” said a senior CAAB official, speaking on condition of anonymity. “What we do not have right now is operational capacity. Without the third terminal, we cannot absorb more airlines.”

A Market Airlines Want—But Can’t Enter

Among the airlines actively pursuing Dhaka operations is Iran’s Mahan Air, which has formally requested flight frequencies with fifth-freedom rights on the Tehran–Dhaka–Tehran route. The request was sent through diplomatic channels on December 8, 2025, and received by CAAB later that month.

Given the geopolitical sensitivity, CAAB sought guidance from the Ministry of Civil Aviation and Tourism (MoCAT) in early January rather than proceeding independently with frequency allocation, according to officials familiar with the process.

In Southeast Asia, Vietnam Airlines is working with Bangladeshi authorities to modernise the bilateral Air Services Agreement (ASA). The two sides have agreed in principle to sign a memorandum of understanding for Hanoi–Dhaka–Hanoi services, with CAAB already forwarding a draft MoU to the ministry for vetting.

From the Middle East, Riyadh Air, Saudi Arabia’s newly launched premium carrier, has expressed strong interest in operating Riyadh–Dhaka–Riyadh flights. Senior executives have met CAAB leadership and sought approval for up to 14 weekly frequencies, although formal designation has yet to be filed.

Saudi low-cost carriers are also monitoring Dhaka closely. Flynas, which currently operates Hajj-focused services, has shown interest in scheduled commercial flights, while Flyadeal has indicated plans to expand beyond its existing two weekly services.

Perhaps the clearest example of lost opportunity came when Wizz Air Abu Dhabi, one of the lowest-fare carriers serving Middle Eastern labour markets, applied to operate flights to Dhaka. Unable to secure slots due to congestion, CAAB instead offered Chattogram. The airline ultimately stepped back from Dhaka altogether.

Interest Expands Across Regions

On the subcontinent, Pakistan’s aviation footprint in Dhaka is poised to grow. Pakistan International Airlines (PIA), Fly Jinnah and Air Sial have already received designation authorisation from CAAB, clearing a key regulatory hurdle for scheduled services. Apart from Pakistan, Air India Express, the low-cost subsidiary of the Air India Group, is operationally ready but has yet to secure suitable slots at Hazrat Shahjalal International Airport, delaying the launch of services.

From Central Asia, Uzbekistan Airways has expressed interest in launching Dhaka flights, though progress has slowed due to unresolved issues related to its General Sales Agent, according to officials.

European interest, while still informal, is also emerging. KLM and Air France have held discussions with CAAB representatives after assessing the commercial potential unlocked by the third terminal, particularly for long-haul connectivity and cargo.

East Asia presents another strong case. South Korea has indicated willingness to modernise its ASA with Bangladesh, as non-scheduled charter flights already operate under BOESL (Bangladesh Overseas Employment and Services Limited) clearance to meet growing demand from Bangladeshi expatriate workers.

Even smaller markets are watching closely. Royal Brunei Airlines has shown interest in Dhaka operations, while Brunei has expressed intent to work toward ASA modernisation. Nepal’s Sree Airlines has been mentioned in media reports as a potential entrant, though CAAB officials say no official communication has yet been received.

Infrastructure: The Breaking Point

HSIA’s capacity constraints are now impossible to ignore. Designed to handle around eight million passengers annually, the airport handled approximately 13 million passengers last year—far beyond its intended threshold. On average, 160 to 165 international flights now operate daily, with nearly 30,000 passengers passing through the airport each day.

The result is visible congestion. Arrival canopies and departure driveways are routinely overwhelmed by crowds of visitors. Passenger movement slows sharply during peak arrival waves, while vehicles compete for limited curbside space.

“We are seeing around 1,250 passengers per hour,” said HSIA Executive Director SM Ragib Samad. “If even two people accompany each passenger, the number of people inside the terminal rises to about 4,000.”

For airlines evaluating new routes, such conditions matter—not just for passenger experience, but for turnaround times, operational reliability and brand reputation.

Third Terminal: Built, But Idle

At the centre of the impasse lies HSIA’s third terminal—physically complete but operationally stalled.

CAAB Chairman Air Vice Marshal Md Mostafa Mahmood Siddiq has repeatedly confirmed that construction is virtually finished.

“About 99 percent of the work has been completed. From an infrastructure standpoint, the terminal is ready,” he has said on multiple occasions.

The delay stems from unresolved disputes over the operation and maintenance (O&M) agreement with the designated Japanese consortium, particularly revenue-sharing arrangements. Civil Aviation and Tourism Adviser Sheikh Bashir Uddin has acknowledged that the terminal will not open during the interim government’s tenure, despite repeated high-level negotiations, including talks with Japan’s vice minister.

Largely financed through loans and technical assistance from the Japan International Cooperation Agency (JICA), the terminal was designed to double cargo throughput and reposition Dhaka as a competitive regional hub.

Credibility at Risk

The prolonged delay in making the third terminal operational has created a critical bottleneck for Bangladesh’s aviation sector, said former CAAB chairman Air Vice Marshal (rtd.) Mafidur Rahman. 

He said the terminal was designed to unlock growth by accommodating new airlines and routes. Bangladesh maintains air services agreements with nearly 55 countries, and several foreign carriers had aligned fleet and network plans with the terminal’s expected opening.

“When timelines are not honoured, confidence is affected,” Rahman said, warning that airlines plan years ahead and may redirect capacity elsewhere. He added that rising transit via neighbouring hubs is increasing passenger costs and shifting economic benefits abroad.

Rahman also cautioned that continued delays could undermine Bangladesh’s image ahead of an upcoming International Civil Aviation Organization (ICAO) audit, stressing that professional capacity and effective leadership must be prioritised by the next government.

Aviation expert ATM Nazrul Islam said Bangladesh is already feeling the impact of being unable to accommodate foreign airlines that have shown clear interest.

Bangladesh remains a strong aviation market, he noted, and greater airline entry would have increased competition and lowered airfares. However, prolonged inaction and slot constraints have weakened confidence, prompting several interested airlines to redeploy aircraft to alternative routes in India, the Middle East and Europe.

“Airlines plan far ahead, and once aircraft are allocated elsewhere, they do not return quickly,” Nazrul said.

A Narrowing Window

Globally, airlines are reconfiguring networks in the post-pandemic era, actively targeting underserved, high-growth markets. Dhaka fits that profile, but as aircraft remain stuck in negotiations and terminals strain under existing traffic, Bangladesh’s aviation window is steadily narrowing.

The question is no longer whether airlines want to fly to Dhaka.It is whether Dhaka is ready to receive them.