Bangladesh has significantly reduced annual airport surcharge rates on airlines, lowering the maximum penalty from 72 percent to about 14.25 percent in a move expected to ease financial pressure on struggling carriers and align charges with regional standards.

According to a gazette notification issued by the Ministry of Civil Aviation and Tourism, the revised surcharge framework will apply to airlines operating at eight airports across the country.

Industry insiders said the decision comes at a critical time, as at least three domestic airlines have suspended operations in recent years, largely due to mounting debt driven by accumulated surcharge penalties. While the reduction may not immediately translate into lower airfares, they expect improved financial stability to strengthen competition and service quality over time.

Managing Director of Novoair and General Secretary of the Airlines Operators Association of Bangladesh, Mofizur Rahman, described the move as a “big relief” for the aviation sector. Although it's unclear if the new rates will be implemented retroactively, he told Aviation Express that the reduction would alleviate further financial strain, improve airlines' ability to provide better services, and ultimately benefit passengers.

Under the amended rules, no surcharge will be imposed if outstanding bills are cleared within 30 days. A 1 percent surcharge will apply for delays of 31 to 60 days, increasing to 1.25 percent for delays of 61 to 120 days. If payments remain overdue beyond 120 days, a 6 percent surcharge will be imposed for every subsequent 120 days or part thereof.

Previously, airlines were subject to a 6 percent monthly surcharge on overdue payments under the Civil Aviation Rules, 1984, resulting in penalties equivalent to 72 percent of the principal amount after one year—often making recovery financially unviable.

Talking with Aviation Express, spokesman of US-Bangla Airlines, Md Kamrul Islam, said the revised rates would substantially reduce payment pressure on airlines. He noted that high surcharge levels in the past made it extremely difficult for carriers to clear outstanding bills, pushing several airlines out of operation.

Despite maintaining regulatory compliance, Kamrul said the previous surcharge regime posed a serious sustainability risk even for financially disciplined carriers. “If airlines can survive and remain financially stable, the ultimate beneficiaries will be passengers,” he added.

He also pointed out structural disadvantages faced by local airlines, which are required to keep aircraft stationed in Dhaka around the clock, increasing ground time and airport facility usage. Foreign carriers, by contrast, typically operate a single flight and depart within hours, making them less exposed to surcharge penalties.

The government noted that Bangladesh’s earlier surcharge rates were significantly higher than those in neighbouring and regional markets, where annual rates range from 12 to 18 percent in India, 8 percent in Singapore, 10 percent in Oman and 2 percent in Pakistan.

Officials said the revised framework is expected to ease financial stress on airlines while bringing Bangladesh’s airport charging structure closer to regional norms.