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The Role of the Aviation industry in Bangladesh

Research · November 2022

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Saima Islam
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The Role of the Aviation industry in Bangladesh

Course Code: THM-324

Submitted To:

Karabi Kabir
Assistant Professor
Department of Tourism and Hospitality Management
Faculty of Business Studies

University of Dhaka

Submitted By:
Saima Islam
Roll: 110
Section: B
Batch: 12th

Date of Submission: 25 September, 2022

1
Abstract:

The aviation sector has good impact on tourism and international trade by offering the only quick
global transportation network. The aviation sector contributes significantly to enabling economic
growth and keep contribution to numerous economic and social advantages by offering these
services. There are a total of 8 airports in Bangladesh of which three are international and five are
domestic. According to the International Air Transport Association. In 2011, 36,000 routes were
used by airlines which carry 2.8 billion people and 47.6 million metric tons of air freight. The 2013
Travel & Tourism Competitiveness Report Domestic airlines are becoming more important in
Bangladesh both commercially and socially. Our research data has been collected from the primary
field survey and the secondary research. In this study we focused on marketing strategy, pricing
policy, distribution system, environment, impact of aviation industry and so on.

Keywords: Aviation Industry, Domestic Airlines, Pricing Policy Economic growth, Global
Transport.

i
Table of Contents
Abstract:..........................................................................................................................................................i
1.0 Introduction: ............................................................................................................................................ 1
2.0 The objective of the study: ...................................................................................................................... 1
3.0 Methodology: ........................................................................................................................................... 1
4.0 Literature review of aviation industry: .................................................................................................... 2
5.0 Overview of aviation industry in Bangladesh: ........................................................................................ 3
6.0 Airline business model in Bangladesh:.................................................................................................... 4
7.0 Lists of airlines in Bangladesh:................................................................................................................ 5
8.0 Lists of airports in Bangladesh: ............................................................................................................... 7
9.0 Law of air freedom for Bangladesh: ........................................................................................................ 9
10.0 Airport slot allocation system in Bangladesh: ..................................................................................... 10
11.0 Customers of airlines transportation in Bangladesh: ........................................................................... 10
12.0 Pricing policies of airlines in Bangladesh: .......................................................................................... 11
13.0 Marketing environment in aviation industry: ...................................................................................... 12
14.0 Marketing Strategy of aviation industry in Bangladesh: ..................................................................... 16
15.0 Impact of aviation Industry in the development of Bangladesh: ......................................................... 17
16.0 post-Covid state of Bangladesh's aviation industry: ............................................................................ 17
17.0 Recommendation and Suggestion: ...................................................................................................... 18
18.0 Conclusion: .......................................................................................................................................... 19
References: .................................................................................................................................................. 19

ii
1.0 Introduction:
Aviation industry in Bangladesh is a booming one because of this increasing impact of
globalization export and import activities which is getting huge day by day. Moreover, Bangladesh
has raised its diplomatic and political activities that build stronger rapport with other countries of
the world. Additionally, many of our Bangladeshi students are going abroad for studies. For this
reason, everyday a huge number of cargo and passenger is coming and going through aircrafts. the
number of domestic flights for transporting passenger and cargo is also increasing. Due to this
growing demand for air transport the Government has to show more things. Air travel has long
been regarded as a very safe mode of transportation particular industry in the global context. It
makes easier growth in world trade, domestic and international travel, and global economic and
social trends

2.0 The objective of the study:


Broad objective:
- To determine the impact of the aviation Industry on the development of Bangladesh

Specific objective:
- To identify types of domestic airlines in Bangladesh
- To demonstrate the current trend of domestic airlines in Bangladesh.
- To discuss the importance of the airline’s industry in Bangladesh.

3.0 Methodology:
Data is collected from the primary field survey and the secondary research.

Primary Data:
Primary data is collected from some of the important variables through series of individual and
focus group interviews like employees, airlines company, airlines market, vendors, customers as
well as representative from governmental and non-governmental supporting organizations.

1
Secondary Data:
The secondary information has been drawn from a literature survey of different research papers,
online portals, journals and government resources.

4.0 Literature review of aviation industry:


Aviation industry in Bangladesh is a booming one because of this increasing impact of
globalization export and import activities which is getting huge day by day. Moreover, Bangladesh
has raised its diplomatic and political activities that build stronger rapport with other countries of
the world. Additionally, many of our Bangladeshi students are going abroad for studies. For this
reason, everyday a huge number of cargo and passenger is coming and going through aircrafts. the
number of domestic flights for transporting passenger and cargo is also increasing. Due to this
growing demand for air transport the Government has to show more things. we have known from
different articles that there is a main hub at Shahjalal International Airport in Dhaka which operates
flights from Shah Amanat International Airport in Chittagong, by this they earn revenue from the
connecting service to Osmani International Airport in Sylhet. We know that, Biman provides
international passenger and cargo service to Asia and Europe and major domestic routes. they have
air service agreements with 42 countries but only flies to 16. The airline was an owner and
managed by the Government of Bangladesh until 23 July 2007 until it was transformed into the
country's largest public limited company by the Caretaker Government of Bangladesh. Which is
formed of February 1972, Biman gained an internal monopoly in the Bangladesh aviation industry
until 1996. the airline expanded its fleet and destinations, but it was adversely affected by
corruption and mishaps. Biman operated flights to 29 international destinations which far away as
New York City to the west and Tokyo to the east. The airline has faced heavy financial losses, and
they loss their reputation for their poor service like regular flight cancellations and delays caused
by its ageing fleet. For the purpose of safety, some of Biman's long-haul aircraft have been banned
in the United States and the European Union. besides we have known Annual Hajj flights,
transporting non-resident Bangladeshi workers and migrants are increasing.

2
5.0 Overview of aviation industry in Bangladesh:

The first military airfield was constructed in Tajgaon by the British Raj during World War II to
allow access for warplanes to the battlefields of Burma and Kohima in India. This brought modern
aviation to Bangladesh. Other airfields were built in Feni, Chittagong, Comilla, Chakaria, Sylhet,
Cox's Bazar, Jessore, Lalmonirhat, and Rajshahi shortly after. During World War II, these military
airstrips served as a base for the RAF Third Tactical Air Force. The colonial administration
constructed an airport at the original Tajgaon airstrips and a landing strip at Kurmitola to serve the
Royal Indian Air Force (RIAF) stationed in the city of Dhaka after the war. Later, Kurmitola
changed into Shahjalal International Airport, Bangladesh's biggest airport. Flights between
Karachi and Dhaka began on June 7, 1954, thanks to Culcutta-based Orient Airways, which was
founded in 1946 and was the first commercial airline to utilize Tajgaon airport for civilian traffic.
By 1960, both Pan American Airways and the British Overseas Airways Corporation had
established aircraft routes from Dhaka, and airports had been built on the former Royal Air Force
airstrips in Chittagong, Thakurgaon, Jessore, Ishwardi, and Comilla. The Pakistan Air Force (PAF)
and the Indian Air Force engaged in intense air warfare over Bangladesh during the Liberation
War of 1971. (IAF). In late July 1971, the Bangladesh Air Force was founded. Ex-PAF pilots
joined its ranks, and training took place in India. The Bangladesh Air Force carried out attacks on
a number of important sites during the Liberation War. After Bangladesh gained its independence,
civil aviation began on January 1, 1972, with the first flight departing from Tajgaon Airport. Biman
Bangladesh Airlines was the first commercial passenger airline to be established in the newly
independent nation. The airline, which was wholly owned by the state, had a monopoly for more
than 20 years. Aero Bengal Airlines, GMG Airlines, Bismillah Airlines, Zoom Airways, Air
Bangladesh, Royal Bengal Airline, Regent Airways, and United Airways are just a few of the
private passenger and cargo airlines operating in Bangladesh today.

3
6.0 Airline business model in Bangladesh:

The two major classifications of Airlines in Bangladesh:


1. Domestic Airlines: Domestic airlines provide services within Bangladesh.
2. International Airlines: International airlines operate both within Bangladesh and between two
or more other nations.

Domestic airlines and international airlines in Bangladesh both of these follow the same business
models where they follow how the carrier generates revenue, value added services, its product
offering, revenue sources, and target customers.

we know the deregulation and new competitive interactions between firms which make some
adjustment of the business model among the competitor.

Airlines company follow four business model in Bangladesh:


1. Full-Service Carriers
2. Low-Cost Carriers
3. Charter Airlines
4. Cargo Airlines
Types of flight classes:
1. Premium economy
2. Business
3. Business class

4
4. First class
5. Economy class
6. Premium Economy Flex
7. Premium Economy Classic
8. Premium Economy Light
9. Basic economy

There are three categories in Airlines in Bangladesh:


1. Major
2. National
3. Regional

7.0 Lists of airlines in Bangladesh:

Scheduled Airlines:
Airline Callsign Hub airport(s)
Air Astra Shahjalal International Airport
-Shahjalal International Airport
Biman Bangladesh
Bangladesh -Shah Amanat International Airport
Airlines
-Osmani International Airport
Fly Dhaka Shahjalal International Airport
Novoair NOVOAIR Shahjalal International Airport
-Shahjalal International Airport
US-Bangla Airlines BANGLASTAR - Shah Amanat International Airport
-Cox’s Bazar airport

5
Charter Airlines:

Airline Callsign Hub airport(s)


R&R RNR Aviation Shahjalal International Airport
Arirang Aviation
MAGPIE Shahjalal International Airport
Limited
South Asians Airlines SOUTH ASIAN Shahjalal International Airport
BRB Air Limited BRB AIR Shahjalal International Airport
Beximco Aviation
BEXAL Shahjalal International Airport
Limited
Square Air Limited Square air Shahjalal International Airport
Bashundhara Airlines BASHUNDHARA AIR Shahjalal International Airport
Impress Aviation
Impress Aviation Shahjalal International Airport
Limited
Meghna Aviation
Limited Meghna aviation Shahjalal International Airport

Bangla International
BIAL Shahjalal International Airport
Airlines Limited
BCL Aviation
BCL Aviator Shahjalal International Airport
Limited

Cargo Airlines:

Airline Callsign Hub airport(s)


Bismillah BISMILLAH AIRLINES Shahjalal International Airport
AAririrlines
Easy fly Express EASY FLY EXPRESS Shahjalal International Airport
NXT AIR NXT AIR Shahjalal International Airport
Sky Air SKY AIR Shahjalal International Airport

6
8.0 Lists of airports in Bangladesh:

Barisal Division
Location Airport Name Category Role
Barisal Barisal Airport Domestic Commercial
Patuakhali Patuakhali Airport Unused Closed
Chittagong Division
Location Airport Name Category Role
Shah amanat
Chittagong International Commercial
international Airport
Chittagong Zahurul Haq Airbase Military Active
Comilla Comilla Airport STOLport No Scheduled flights
Cox’s Bazar Cox’s Bazar Airport Domestic Commercial
Noakhali Noakhali Airfield Future Under Construction
Doha Zari Doha Zari Airfield
chakaria Chakaria Airport
Military Closed
Feni Feni Airfield
Hathazari Hathazari Airfield
Dhaka Division
Location Airport Name Category Role
Hazrat Shahjalal
Dhaka International Commercial
International Airport
Khademul Bashar
Tejgoan Military Airbase
Airbase
Bajitpur Bajitpur Airport
Unused Closed
Tangail Tangail Airport

7
Khulna Division

Location Airport Name Category Role


Khan Jahan Ali
Bagerhat Future Under Construction
Airport
Jessore Jessore Airport Domestic Commercial
Matiur Rahman
Jessore Military Airbase
Airbase

Raj Shahi Division

Location Airport Name Category Role


Ishwardi Ishwardi STOLport No Scheduled flights
Shah Makhdum
Rajshahi Domestic Commercial
Airport
Bogra Bogra Airport Military Airbase
Sirajganj Sirajganj Airport Unused Closed

Rangpur Division

Location Airport Name Category Role


Saidpur Saidpur Airport Domestic Commercial
Lalmonirhat Lalmonirhat Airport Military No Scheduled flights
Thakurgoan Thakurgoan Airport STOLport No Scheduled flights

Sylhet Division

Location Airport Name Category Role


Osmani International
Sylhet International Commercial
Airport
Shamshernagar
Kamlaganj STOLport No Scheduled flights
Airport

8
9.0 Law of air freedom for Bangladesh:

First Freedom: The negotiated right for Bangladesh's airlines to overfly another country's
airspace.

Second Freedom: The right for a commercial aircraft of Bangladesh to land and refuel (commonly
referred to as a technical stop) in another country.

Third Freedom: The right for airlines of Bangladesh to deliver revenue passengers from their
country to another country.

Fourth Freedom: The right for an airline to carry revenue passengers from another country to
Bangladesh.

Fifth Freedom: The right for Bangladesh's airline to take passengers from Bangladesh and deposit
them at their destination country and then pick up and carry passengers on to another international
destinations.

Sixth Freedom: Here we have the right to carry passengers or cargo between two foreign
countries, provided the aircraft touches down in our country airline.

Seventh Freedom: Here we have the right to carry on flights that originate in a foreign country
bypass our country and deposit the passengers at another international destination.

Eighth Freedom: Here we have the right to carry passengers from another country's one point to
another point on a flight that originates by our airlines.

Ninth Freedom: Here we have the right to originate a flight in a foreign country and carry
passengers from one point to another within the foreign country.

9
10.0 Airport slot allocation system in Bangladesh:
When an aircraft flies it needs slots in two places. Landing on the runway requires availability of
the runway. It is not possible for us alone to maintain the connection with the airlines of all the
countries. View or manage slot availability. This creates a dilemma or a complex
situation. Overcome from this situation, there we have an independent slot coordinator as an
intermediary who counts the available slots of different countries. They fix the schedule between
the airlines of different countries. And they regularly divide the entire schedule into six months to
maintain. So, we have to confirm in advance which time slot is available and accordingly we have
to book. How slots are allocated when new airline companies enter the market.

- If any of our airports are extended, 50 percent should be reserved for new businessmen.
- If an old airline wants to give up its grandfather right, it can buy a new one
- The old airline company can swap their flight or landing time to share the slot with the new airline
company.

11.0 Customers of airlines transportation in Bangladesh:

"Customers" in the Business Air travel market:

Secretary to Senior Executive: Busy executives give responsibility to their secretary to select
airlines and make booking. Secretaries will choose suitable airline considering the choices and
requirements departure airport, flight timing. Airlines give offer to secretaries for enjoying
corporate entertainment and discounted travel in return for loyalty.
Travel Agent: Busy executives give responsibility to travel agent as an expert to obtain their
advice to explore alternatives. Travel agents get higher commission provided by airlines.
Travel clerks: They make bookings and issue tickets and get offer of incentives free travel on so-
called educational or familiarization visits arranged by different airlines.
Corporate travel Managers: They organize travel plan for executives in large corporation. Many
of us airlines today follow the policy of giving incentive to everyone, whether or not the person in
question is actually able to influence the amount of business obtained. Thus, today almost all

10
airlines offer individual incentives through Frequent Flyer Program.
Children: Children have ability to influence on travel buying decision made by parents. Video
game availability in airlines for the children entertainment can influence the children.
Travel Agents: Leisure travelers go to travel agents for advice on making of booking and visa
application as they are relatively in experience.
Tour operators: They select airlines of a group along with others relevant aspects of travel. They
coordinate "consolidators". They are the dealers of discounted air tickets for organizing a tour.

"Customer" in the Air Freight Market:

Air freight forwarders: More than 90% of the air freight is provided by forwarders. Forwarders
work is gathering a large number of small packages from individual shippers and present them to
an airline as a large consignment. In return airlines charges much lower rate per kilo. All airlines
regard managers of forwarder as "Customer"
Clerks: who work for freight forwarder to take decision for selecting routes and carriers for
moving emergency shipments late at night without disturbing Senior Managers.
Integrators: FedEx, UPS and DHL which provide good support in retail market of non-expert
users.

12.0 Pricing policies of airlines in Bangladesh:

Pricing decision cannot be made in isolation. Product & pricing decisions must clearly be made
together. Airlines invest large sum in improving First & Business Class as better seats, high quality
catering & IFE. Accordingly raises price in real term to provide return on investment.

There are many pricings policy of airlines in Bangladesh:


- Deregulation
- Dissemination of fares information
- Uniform & Differential pricing
- Management of discount fares

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- Conditions on discount fares
- Pricing response & price initiatives

13.0 Marketing environment in aviation industry:

• Firstly, to look at the theoretical basis for the study of the Marketing Environment, applicable to
any industry.
• Secondly, to analyze those factors from this environment which need to be considered by

airlines.
• Thirdly, to discuss the specific impact which each of these issues should have on properly
thought-out marketing policies.
we have focused on some environmental factors for aviation industry:

Political Factors:
• The years at the beginning of the new millennium have turned out to be some of the most difficult
that the aviation industry has ever faced-catastrophic event of September 2001
• Assessing the longer-term impact of the fear of terrorist attack on the size of the aviation market
is very difficult.
• A terrorism threat can only be addressed by seeking to understand and address the underlying
grievances. The "War on Terror" certainly worsened and not solved the problem.
• airlines do not have control over the size of the markets because of wars and terrorist attacks-
have a sudden, strong and negative impact.
• The industry will have to accept a growing burden of security costs along with airport hassles
associated with air journeys
• Almost from the inception of the commercial aviation industry, governments regulated airlines.
For many years, it controlled airlines route entry, capacity, frequency decisions as well as
intervened to stop airlines engaging in price competition
• In recent years, substantial regulatory reform has taken place.
• the regulation of domestic services, which are solely under the control of one government, and
international services, which require the agreement of at least two.

12
• Between the passing of the Federal Aviation Act in 1938 and the Airline Deregulation Act in
1978, carriers could only enter new routes, withdraw from an unprofitable route & fare
manipulation through a cumbersome & extremely slow bureaucratic procedure.
• "Open Skies “agreements allow each side to designate as many airlines as they choose. These
airlines are then able to fly to any number of points with no limitations on capacity and pricing
• Countries in favor of "Open Skies “are still working on it to bring a true regulatory reform
• Today, economic liberalization is giving new opportunities which must be exploited if success is
to be achieved. It also brings new threats which must be countered effectively.
• Systems should be in place to enable decisions to be made quickly. New opportunities to enter
routes will arise at short notice, & may disappear rapidly if another airline is able to react faster
• Necessity to change the product specification quickly.
• Pricing policies will have to be adjusted frequently, with changes often being required on a daily
basis or sometimes even more frequently than this.
• Decision-making must be decentralized to the managers level where people will have a better
understanding of local market conditions.
• Up-to-date and accurate commercial information will also be needed. Not only must information
be accurate and timely, it must also incorporate a forecasting capability & corrective action to be
taken where appropriate.
• marketing policies need to have a defensive component, to enable airlines to fend off potential
competitors. High frequencies gave a protection against the attacks of competitors because they
minimized the gaps available for rivals to mount an attractive schedule
• Any airline seeking to be successful must maintain control of distribution.
• Carriers also often have to change the basis of their advertising and promotional policies in
providing tactical message- entry into new market, changes in product specification or fare
reduction
• A final, but crucial, requirement for marketing success in a deregulated environment is a low cost
base.

13
Economic Factors:
• The demand for air travel is characterized by a very high-income elasticity. As the world
economy grows, so the demand for air travel can be expected to increase too.
• This continuing growth gives both enormous opportunities and great challenges to the airline
industry to explore the growing market.
• Periods of buoyant demand have seen airlines over-invest in additional capacity.

Social Factors:
• Clearly, the product that airlines offer will have to evolve, with more provision being made for
disabled passengers and those needing help at airports, and medical care services will have to be
improved.
• The travel industry may have to adjust its promotional policies.
• The truth is that there are very important sub-segments to the market, such as those consisting of
singles, gays or one-parent families, whose particular requirements from a holiday should be
reflected in promotional and product-planning policies.
• The modern travel industry is having to adjust to a marked broadening in the range of
requirements of vacationers. Better education, growing experience of air travel and fears about the
health risks of excessive exposure to the sun are all
meaning that to a greater and greater degree, holidays must reflect a lifestyle based on individual
choice.
• They are on holiday, with winter sports, golf, history and trekking holidays all now well-
established sub-segments of the market.
• In many societies most jobs were seen as being secure for a lifetime.
• Today situation could be more different. Redundancy & job seeking occurs in may people’s
career. Pressure at work is far greater as people battle to keep their job.
• Working lives are now busier than ever before. Working hours are often longer rather than
shorter, with working at home commonplace in the evenings and at weekends.
• Also many people are reluctant to take their full allowances because of a "presenteeism “.
• The above deregulations bring changes in Business and Leisure segment.
• Only recently has it become common for separate bags made up for female as well as male
travelers to be offered. Women are more likely than their male colleague to check in hold baggage,

14
& less likely to carry large amounts of baggage on board on aircraft.

Technological Factors:
• Video-conferencing posed a significant long-term threat.
• Given the nature of the threat, a progressively greater response will be required from airlines in
their marketing policies.
• Greater emphasis will be required on convenience to enable business travelers to fly with the.
Minimum impact on their working time, allowing the benefits of a face-to-face meeting to
outweigh the time required to travel to such a meeting.
• Advertising will be needed which promotes the benefits of face-to-face meetings as opposed to
conducting these meetings via video-conferencing or conference calls.
• The mid-1990s saw the possibilities opened up by the Internet. Since then, the growth in its use
has been astonishing.
• Almost all major airlines have websites which they use for promotional purposes, with these sites
supplying timetable and product information and also often allows people make bookings.
• Frequent Flyer Program members check their mileage account
• In the field of air freight, firms such as UPS and Federal Express allow customers to track their
consignments as they move through the system using the Internet.
• Future role of the Internet in airline marketing concern its use as a distribution channel.
• Today, many countries have seen a resurgence of interest in surface-especially railway-transport
investment.
• Surface transport investment provides both problems and opportunities in Airline Marketing.
• The problems come from a city-center to city-center journey where surface transport provide
efficient services. Surface transport will share the demand with its efficient services
• Surface transport come with the option to cooperate air transport rather compete by providing
feeder services to long-haul pax flights

15
14.0 Marketing Strategy of aviation industry in Bangladesh:

Porter‟s five forces‟ & its application in Airlines Industry are-


- Rivalry amongst Existing Firms
- Substitution
- New Entry
- Power of Customers
- Power of Suppliers
Strategic Families which an aviation company follows:
Cost Leadership in Airline Industry-
1. Low-Cost Business Model
- Low Fleet costs
- Low landing fees
- Short turnarounds/ high aircraft utilization
- Limited on-board services
- Point-to-point service only
- Simple fares
- Low distribution costs
- Non-refundable tickets
- Ancillary revenue
- Generation of new traffic flows
2. Hybrid Low-Cost Carrier Model-
- Differentiation
- Focus-
1. Value added 2. Low Cost 3. Lost-in-the-middle

16
15.0 Impact of aviation Industry in the development of Bangladesh:

Bangladesh is a developing nation, and many nations now see it as having potential to play a
significant role in the area. As a result, many nations are open to cooperating with Bangladesh in
the future. The majority of nations have agreed to join Bangladesh in signing a memorandum of
agreement in this regard. Considering Bangladesh's rapidly expanding economic activity,
particularly in the aviation industry, many European and African nations have sent bids for air
connectivity with Bangladesh. Although Bangladesh has air service agreements with 54 countries,
only a third of those nations are served by aircraft. According to CAAB statistics, about 22, 51,534
passengers were transported by 14,266 international flights to and from Bangladesh between April
2020 and June 2021 while 19,04,316 were carried by 34,098 domestic flights within the country
since June 2020. Besides, at least 8,553 cargo flights carried 24,05,346 tons of goods to from
abroad while 1,83,109 tones from the country to various international destinations between April
2020 and May 2021. Bangladesh had made significant progress in the field of aviation and
continued its effort to maintain the international standard.

16.0 post-Covid state of Bangladesh's aviation industry:

As the Novel Coronavirus (Covid-19) pandemic hit the aviation industry hard, numerous airlines
filed for bankruptcy and some disappeared from the skies. However, the air transportation industry
has once again proved that it is able to adapt to changing conditions. As a result, it has assisted the
fight against Covid-19 by moving people and commodities to the necessary locations. With a total
contribution to the GDP of Bangladesh of more than Taka 840.2 billion in 2019, or 4.4 percent of
the overall GDP, the travel and tourism industry is seen as a promising sector in Bangladesh
("Tourism contributes 4.4 pc to GDP," 2020, para. 2). The government has adopted practical
efforts to draw foreign tourists by positioning Bangladesh as "Beautiful Bangladesh" in front of
the international community, despite the sector's relatively small contribution to Bangladesh's GDP
still expanding annually (Patwary, 2020). The first coronavirus infections were discovered in
Bangladesh in March 2020 (First coronavirus cases detected in Bangladesh, 2020, para. 1). Since
17
the travel and tourist industry depends so strongly on people moving about and interacting with
one another, government efforts to stop the coronavirus spread have made this air industry the
worst victim. The travel and tourism industry has suffered as a result of airlines being grounded
and luxurious hotels becoming ghost towns. The World Travel and Tourism Council (WTTC)
claimed in their most recent study (2020) that the tourism industry is experiencing a grave scenario
with 1 million jobs lost every day and 100.8 million workers already at risk of losing their jobs.
Bangladesh's travel and tourism industry is not an exception. According to reports, the Covid-19
pandemic has stopped the tourism business in Bangladesh. The epidemic has spread daily across
Bangladesh since the virus was thought to have entered the country there in March 2020, and the
number of affected persons has grown. Due to the widespread dread of this outbreak and the need
to protect all citizens, the government was compelled to temporarily close all public activities at
tourist destinations (Lalon, 2020). There hasn't been much research on the impact of the Covid-19
pandemic on Bangladesh's travel and tourist industry, despite the fact that it has a significant
impact on the global tourism industry.

17.0 Recommendation and Suggestion:

- Maintain the law of freedom properly.


- Adapt with marketing environment.
- Update the airlines marketing strategy.
- Following price policy properly.
- Easy the distribution system.
- proper allocation the slot.
- Privatization the airlines company.
- Increasing the aviation service system.
- Decreasing the operating cost.
- easy check in, booking and Visa processing.
- Increasing security system.
- Increasing frequency of flights.

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18.0 Conclusion:

Aviation industry is a demanding industry now-a day. As tourism industry is growing, the
importance of airlines is also growing. It’s one of the sectors of tourism industry too. This paper
has examined the recent economic growth and current capacity of domestic airlines industry in
Bangladesh. It has also identified some problems regarding the airlines industry in Bangladesh and
provides some recommendations to overcome those. There were very few literatures on this topic
so there is further good research scope on the domestic airlines’ demand analysis and key selection
criteria in domestic airlines in Bangladesh.

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business-in-bangladesh

From legacy to low cost: How different types of airlines work. (n.d.). Asheville Regional Airport | One of
the fastest growing airports in the country. https://flyavl.com/article/legacy-low-cost-how-different-types-
airlines-work

List of airlines of Bangladesh. (2022, August 16). Wikipedia, the free encyclopedia. Retrieved September
22, 2022, from https://en.m.wikipedia.org/wiki/List_of_airlines_of_Bangladesh

One Education. (2022, June 28). Types of airlines and airline business models – One education.
https://www.oneeducation.org.uk/types-of-airlines-and-business-models/

Overview of Bangladesh aviation industry. (n.d.). Homework Help and Textbook Solutions | bartleby.
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TheLessorAnalyst. (n.d.). Airfinance Journal - News, Analysis & Deals in Aviation Finance.
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DHARIsAPPWv3fVUYj_6lXSh3wao4QexUAFXAirOGnlo0V-QbrdvxudXJSPt-
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