Private airlines have raised concerns over state-run Biman Bangladesh Airlines (Biman) receiving subsidies that allow it to maintain lower fares despite unprecedented jet fuel price increases, creating competitive imbalance in domestic aviation market.

Jet fuel prices surged 115% over past 16 days, forcing private carriers to impose TK 1,200 fuel surcharge per ticket on major routes. However, Biman increased fares by only TK 100, prompting accusations of unfair government support.

Mofizur Rahman, managing director of NOVOAIR, questioned subsidy rationale for affluent travellers. “Unfortunately, despite oil price increase causing additional costs, Biman hasn’t raised fares much, only TK 100, where fuel price increase impact should be TK 1,500 per ticket. Who is giving that subsidy? Country’s people are giving it. I believe general public shouldn’t subsidize travel sector like this,” he told media.

Private operators including NOVOAIR, US-Bangla Airlines and Air Astra uniformly added TK 1,200 surcharge on routes to Cox’s Bazar, Sylhet, Chattogram and Saidpur, with TK 1,000 added for Jashore and Rajshahi flights. Airlines implemented charges in two phases following fuel cost escalation exceeding 100%.

Mejbaul Islam, chief commercial officer at Air Astra, emphasized on competitive disadvantage. “Definitely because of fare difference between Biman and us, whether US-Bangla, Novoair or us, more passengers will divert to Biman. Biman gets subsidies directly or indirectly, everyone knows that. We three airlines buy fuel prepaid, paying advance money. But definitely we want authorities to view all airlines equally and serve them same way,” he told media.

Private airline executives argue subsidy creates unfair market distortion. While they must pass increased costs directly to passengers, state carrier maintains artificially low prices through government support funded by taxpayers.

Mohammad Kamrul Islam, general manager for public relations at US-Bangla Airlines, appealed for government intervention. “Direct impact is falling on airlines as well as passengers. We want government to reconsider today’s decision and keep this industry alive. That’s our expectation,” he told media.

Industry faces dual pressure from fuel price surge and declining passenger numbers following Eid holidays. Mejbaul Islam described this situation as abnormal, noting negative impact already visible in passenger volumes.

Airlines warn significant fare gap between private carriers and Biman will shift passengers toward subsidized state airline, potentially threatening private operators’ financial viability. Executives demand level playing field where all carriers face identical market conditions.

Biman is reportedly processing fare increase procedures, though timeline remains unclear. However, private operators argue damage to competitive balance has already occurred.

Sector experts predict no immediate relief as Middle East instability continues driving global fuel prices upward. Private airlines seek urgent government policy review to address subsidy imbalance threatening industry sustainability.