The chairman of newly-created South Asia Airways is well-connected Southeast Bank chairman Yussuf Abdullah Harun, and his presence in the venture leads some to predict that the airline will become a key player.
Harun says three ATR-42 turboprops have been leased from the manufacturer for delivery in late October, and that South Asia Airways aims to start domestic services before the end of the year, adding that operating approvals have been secured from the Civil Aviation Authority of Bangladesh.
"We will start with three aircraft in the domestic market and in the next phase we will go into the cargo market," he says. "After that we will go into regional passenger services."
Harun is a shareholder in the airline along with two other Bangladeshi businessmen. South Asia Airways' first chief executive is UK national George Gilson, a former executive with Oman Air and Hunting Cargo Airlines. It will become the fourth private passenger carrier to start operating in Bangladesh in competition with state-owned Biman Bangladesh Airlines, the others being Aero Bengal, Air Parabat and GMG Airlines.
Aero Bengal became the first to launch in 1995 following deregulation, although it suspended services in 1998 after never making a profit.
In January 1998, Air Parabat became the country's second private carrier and, despite being grounded for six months from June that year as a result of operational troubles, it remains in the market using Let L-410s turboprops.
Four months after Air Parabat was launched, however, GMG Airlines began its commercial activities, and quickly took over as the country's main private airline. It operates on domestic routes in direct competition with Biman using Bombardier de Havilland Dash 8s.
Both Air Parabat and GMG have been seeking international rights to operate to points in South Asia, as has Aero Bengal which has said it intends to resume services eventually.
The Bangladeshi Government has so far only allowed one private concern - all-cargo carrier Bismillah Airlines - to operate international flights.
As it sees growing domestic competition, Biman is preparing a re-structuring plan, which includes finding an alliance partner and eventually privatisation.
Source: Airline Business
