Draft law proposes tougher rules on airfares, penalties for malpractice
A plane is seen during sunrise at the international airport in Munich, Germany, January 9, 2018. Photo: REUTERS/Michaela Rehle/File Photo
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A plane is seen during sunrise at the international airport in Munich, Germany, January 9, 2018. Photo: REUTERS/Michaela Rehle/File Photo
Highlights:
- Foreign airlines may soon open offices directly in Bangladesh
- Airlines can appoint multiple local agents instead of one
- Draft amendment aims to increase transparency and protect passengers
- New rules introduce heavy fines for airfare malpractice and hoarding
- Mandatory registration required for ground handlers and GDS providers
- Reform seeks fair pricing, competition, and stronger civil aviation oversight
The government is preparing to allow foreign airlines to operate through their own offices in Bangladesh, marking a shift from current rules that require them to rely on a single locally owned agent.
Carriers that do not wish to open a local office will be able to appoint more than one fully Bangladeshi-owned firm as general sales agents (GSA). Domestic airlines will also be permitted to appoint agents if they choose.
The Civil Aviation and Tourism Ministry has drafted the “Civil Aviation (Amendment) Ordinance-2025” to include this provision and has published the document online to seek feedback from stakeholders.
At present, the Civil Aviation Act-2017 prevents foreign airlines from opening offices in Bangladesh, requiring them instead to appoint a single locally owned agent.
A senior civil aviation ministry official said further changes have been proposed to prevent market domination, improve transparency and protect passengers.
He said the draft introduces strict penalties for airlines, ground handlers, global distribution system operators, and travel agencies. Four existing sections of the law are set to be amended, while seventeen new sub-sections will be added.
Infograph: TBS
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Infograph: TBS
Aviation expert Kazi Wahidul Alam told The Business Standard that foreign airlines previously had the option to open offices in Bangladesh, but the government halted the arrangement around four years ago.
“At the time, authorities believed airline commissions on ticket sales and related services should remain in the country to support local employment and business growth,” said Alam, a former board member of Biman Bangladesh Airlines and editor of the travel magazine Bangladesh Monitor.
“The government now thinks that greater competition is needed to keep airfares favourable for passengers,” he added. “Authorities suspect some GSAs may have colluded to drive up ticket prices.”
However, he said such concerns require investigation, noting that airlines cannot operate without GSAs.
Meanwhile, employees of various GSAs formed a human chain in front of the National Press Club yesterday, demanding that the provision for mandatory GSAs be retained. They warned that its repeal would affect the industry and thousands of livelihoods.
Nabila, an official of Oman Air’s GSA Air Galaxy, read a written statement at the human chain. Munir, an official of Air France’s GSA Bengal Airlift, and Rafiqul Islam, an official of Saudia Airlines’ GSA United Link, also addressed the protest.
Penalties for airfare malpractice
The draft also proposes tougher rules on airfares and penalties for malpractice.
It states that any travel agency charging passengers above the approved tariff will be committing an offence and must refund up to three times the excess amount collected.
Hoarding tickets to create artificial shortages or selling them at inflated prices may lead to a maximum of five years’ imprisonment, a fine of up to Tk50 lakh, or both.
If monopolistic behaviour, abnormal price hikes, or artificial shortages are detected on any route, the CAAB chairman will be empowered to set a reasonable fare directly.
Concerns over irregularities and artificial shortages in Bangladesh’s civil aviation sector have persisted for years.
At a briefing on 25 August, Civil Aviation Adviser Sk Bashir Uddin said some operators deliberately create ticket shortages to extract higher prices from travellers.
At the same event, Secretary Nasrin Jahan said monitoring was being strengthened and legal amendments introduced to ensure fair pricing and improve governance.
Mandatory registration
Registration will be mandatory for ground handling companies and global distribution system (GDS) providers under the draft rules.
Any ground operator wishing to operate in Bangladesh must meet specified conditions and apply to the CAAB chairman for approval. Registration will be granted only if the chairman is satisfied.
Similarly, GDS providers must register before conducting business in the country; operations without formal registration will be prohibited.
The CAAB chairman will be granted real-time access to GDS data, allowing continuous monitoring of bookings and fares. If evidence of anti-consumer or harmful practices emerges, the chairman will have the authority to suspend or revoke registration.
A Global Distribution System, or GDS, is a digital booking network used by airlines, travel agents, and online platforms to check flight availability, compare fares, and issue tickets in real time.
It connects carriers, hotels, and travel sellers on a single platform.
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