Bangladesh’s aviation sector has reached a significant milestone as five of the world’s leading airport service providers compete to operate at Hazrat Shahjalal International Airport’s (HSIA) Third Terminal. The intense competition reflects growing global confidence in the country’s ambition to emerge as a regional aviation hub.
For the first time since Bangladesh’s independence, the Civil Aviation Authority of Bangladesh (CAAB) has decided to appoint a second passenger ground handling operator, ending decades of exclusive responsibility held by the national carrier.
The contenders
The internationally renowned firms seeking entry into the ground handling market include UK-based Menzies Aviation, Switzerland’s Swissport, Türkiye’s Çelebi Aviation Holding, UAE-based data (part of the Emirates Group), and Singapore’s SATS.
Former CAAB chairman Air Vice-Marshal (retd) Muhammad Mafidur Rahman noted that Bangladesh has rarely attracted simultaneous interest from so many global aviation companies, highlighting the nation’s growing strategic importance in South Asian aviation.
This interest is further underscored by diplomatic engagements, with ambassadors from the United Kingdom, Switzerland, Türkiye, and the United Arab Emirates separately discussing their companies’ interests with Bangladesh’s aviation leadership.
A landmark reform
The introduction of a second handler represents a major policy shift. A senior CAAB official confirmed that the second operator will be limited to passenger and ground handling activities including aircraft servicing, baggage management, check-in, and ramp operations, while cargo handling at the new terminal will remain exclusively under Biman Bangladesh Airlines.
Foreign airlines have long advocated for such competition, arguing it will improve service quality, reduce turnaround times, and align the airport with international standards.
Industry feedback and cargo concerns
While the move was welcomed by industry stakeholders, some have questioned the decision to maintain Biman’s monopoly over the automated Cargo Village. Mofizur Rahman, managing director of Novoair and secretary general of Airline Operators Association of Bangladesh (AOAB), expressed concerns regarding whether Biman’s cargo operations meet international standards of capability and integrity.
Similarly, K M Mozibul Hoque, chairman of TAS Aviation Group, suggested that while the government may retain ownership, operations should be entrusted to proven global companies to enhance efficiency and safety. Former CAAB chairman also suggested that international expertise would help maximise the benefits of the terminal’s state-of-the-art equipment through knowledge transfer.
Biman and Japanese consortium roles
Biman remains confident in its ability to manage the new facility. Boshra Islam, general manager (Public Relations), said the airline has recruited more than 1,000 additional personnel and procured the necessary ground handling equipment.
She noted that Biman is currently working with a Japanese consortium on cargo arrangements and has not yet received official communication regarding a second passenger handler.
The Japanese consortium, comprising Japan Airport Terminal Company, Sumitomo Corporation, Nippon Koei, and Narita International Airport Corporation, is set to assume overall operation and maintenance responsibilities for the Third Terminal once a final agreement is signed.
