With the planned Victory Day inauguration of Hazrat Shahjalal International Airport’s third terminal approaching, uncertainty persists over who will operate the facility and whether it can begin handling passengers on 16 December.
Negotiations with the Japanese consortium expected to manage the terminal remain unfinished. Recruitment, ground-handling arrangements and preparations by immigration police, customs and other airport agencies are also incomplete.
Despite these unresolved issues, Civil Aviation and Tourism Minister M Rashiduzzaman Millat has repeatedly announced that the terminal will open on 16 December. The Civil Aviation Authority of Bangladesh (Caab) maintains the same position.
Caab has proposed operating 10 flights on the opening day, while the Japanese consortium has agreed to handle four.
Former Caab chairman Mofidur Rahman said he had heard of plans for limited operations but questioned their feasibility.
“From a procedural perspective, it is not possible to make the terminal operational within the announced timeframe. This is because discussions between the two sides have not even been concluded. After that, signing the agreement, recruiting staff and making the terminal operational will take time,” he told TIMES.
Caab Chairman Air Vice Marshal Md Mostafa Mahmud Siddiq, however, remained confident.
“The third terminal will become operational on the specified date, and all preparations are under way with that target in mind. Discussions with the Japanese consortium will also be concluded soon,” he said.
He added that a ground-handling company would be appointed as soon as possible.
Four companies have been shortlisted for ground handling, with Biman Bangladesh Airlines expected to continue providing the service until a final decision is made.
However, Biman’s record at the two existing terminals has raised questions over whether it can deliver the improved services expected at the new facility.
Airport management officials said appointing an operator would not immediately resolve the problem. The selected company would need to import equipment, requiring a lead time of nine months. Delays could extend the process beyond a year.
Under an understanding with the government, a Japanese consortium comprising Japan Airport Terminal Co Ltd, Sumitomo Corporation, Nippon Koei and Narita International Corporation is expected to operate and manage the terminal for 15 years.
However, negotiations over contractual terms and revenue sharing remain incomplete.
Caab officials said concluding the agreement and securing the necessary approvals would take additional time. The contract would require vetting by the law ministry and approval from the finance ministry and the Cabinet Committee on Economic Affairs.
The urgency is evident from growing passenger traffic.
In 2025, the airport’s two existing terminals handled 12,720,000 passengers, including 10,312,000 international travellers, against an annual handling capacity of 8 million.
Operating beyond capacity has contributed to passenger difficulties and management problems.
The existing terminals cover a combined area of 100,000 square metres, while the third terminal alone spans 230,000 square metres.
Turkish company draws attention in ground-handling race
According to Caab sources, the four shortlisted operators are Switzerland’s Swissport, UAE-based dnata, Britain’s Menzies Aviation and Türkiye’s Çelebi Aviation.
Çelebi has drawn particular attention for its efforts to secure the contract.
The company has hired the private public relations agency Benchmark, owned by former journalist Ashraf Kaiser, whose name has been widely discussed since the mass uprising. His reported connections at senior government levels have also attracted attention.
Çelebi has signed a partnership agreement with an influential Bangladeshi aviation company. An adviser to the former interim government and the son of a current cabinet member have also reportedly been associated with the company.
A former senior Biman official, speaking on condition of anonymity, said Çelebi and the British company had pursued ground-handling contracts during the Awami League government’s tenure, with their respective embassies lobbying on their behalf.
The official also said an interim government adviser had praised Çelebi at a Biman board meeting.
Jahangir Kabir, former organising secretary of a previous Biman Sramik Dal committee who attended the meeting, accused former Civil Aviation Ministry Adviser Sheikh Bashir Uddin of supporting the Turkish company.
“Towards the end of the interim government’s tenure, one day, Civil Aviation Ministry Adviser Sheikh Bashir Uddin suddenly came to the office and spoke in favour of the Turkish company. I opposed it at the time and said, ‘You are associated with this company. That is why you are trying to take ground handling away from Biman and give it to another company,'” he told TIMES.
Bashir Uddin, managing director of AkijBashir Group, denied the allegation.
“I did not make any such statement,” he said.
Responding through Benchmark, Çelebi Aviation Group CEO Dave Dorner said the company had experience and a history of success in emerging markets.
He said Çelebi operated at more than 60 stations across three continents, serving over 400 airlines.
However, he declined to identify the company’s Bangladeshi partner.
Asked whether Çelebi could begin operations before 16 December, Dorner cited its experience in Indonesia, where it gained access to airports in Jakarta and Bali in December 2025 and handled its first flight on 1 January 2026.
Another shortlisted operator, dnata, was previously associated with Salman F Rahman, private investment adviser to the prime minister under the deposed Awami League government. The son of a minister in the current BNP government is now associated with the company.
A member of an influential family is associated with Menzies, while a former Bangladesh Cricket Board director is linked to Swissport.
Officials said Çelebi had indicated plans to invest $12 million and create 1,500 jobs. Menzies has proposed a similar investment and the creation of 1,000 jobs.
Suffice it to say, the stakes are high.
Biman currently earns around Tk1,500 crore annually from ground handling at Shahjalal airport, making it the airline’s largest revenue source.
Ground handling at the third terminal is expected to generate Tk3,000 crore in revenue.
The lucrative business has attracted foreign companies for years, with operators seeking contracts through Bangladeshi partners under successive governments.
However, Biman has faced persistent passenger complaints over delayed baggage delivery, theft and damaged suitcases.
Aviation expert ATM Nazrul Islam warned against stripping Biman of such a major business.
“If Biman does not get the work at the third terminal, it will lose a major business. That will not be good for the country or for Biman. However, Biman must improve the quality of its services,” he told TIMES.
Former Biman board member Kazi Wahidul Alam said the new terminal would provide passengers with more space and better facilities, but service providers must also improve their performance.
“The organisations responsible for airport services must change their attitudes and improve service quality at the same time,” he said.
Cost rises as loan repayments begin before opening
The third terminal was among the megaprojects undertaken during the Awami League government’s tenure.
Approved in 2016 at an estimated cost of Tk13,610 crore, the project now carries a revised cost of around Tk22,214 crore under its third revision.
Then prime minister Sheikh Hasina partially inaugurated the terminal on 7 October 2023, when authorities said passengers would begin using it towards the end of 2024.
The August 2024 mass uprising slowed progress, while unfinished internal work later prompted Caab to set a revised opening target of June-July 2025.
The Japan International Cooperation Agency (Jica) has provided a $2.21 billion loan for the project.
Although the terminal remains closed to passenger operations, repayment of the Japanese loan has already begun.
Caab has paid Tk1,100 crore in loan instalments from revenue generated by its other operations.
Another instalment of approximately Tk900 crore is due in December.
