Kathmandu. Private carrier NovoAir has started the process of selling the remaining five ATR aircraft in its fleet, pointing out the possibility of shutting down the service from May.
Mohammad Mofiqur Rahman, managing director of NovoAir, was quoted as saying by The Daily Star that the process of selling the aircraft is expected to be completed by April.
Except for the 2018-19 fiscal year, Novo Air, which has been incurring losses every year, sold two of its aircraft to Yeti Airlines, nepal’s private sector air service provider.
Managing Director Rahman had been claiming that he would start international flight services by bringing in new aircraft after starting the sale of ATR aircraft. However, experts familiar with his finances have said that novo air’s revival is not possible until a new partner or more investment is brought in. Although Rahman claimed that he would continue the service by bringing in investors after a brief break, air service experts say that he has responded to the suspension of the flight service for three months for a dignified exit from the air service sector.
Rahman, who is also the chairman of Novo Air, expressed hope to bring in new investors soon and claimed that the discussions are in the final stage. “If we get a new investor, we won’t sell our aircraft. Our flights won’t stop. Otherwise, we will have to stop flying operations for three months. “
In recent times, due to political instability, increasing trade deficit and rising inflation in Bangladesh, the business of domestic air service companies has been shrinking. Apart from this, the huge bridge built on the Padma River has significantly reduced the travel time, which has also reduced the number of passengers in domestic flights.
Since its inception on January 9, 2013, NovoAir has invested more than US$50 million in aircraft acquisition and an additional US$100 million in infrastructure and equipment.
NovoAir has been operating daily domestic flights connecting Dhaka to Chattogram, Cox’s Bazar, Sylhet, Jashore, Saidpur and Rajshahi in the recent past. Flights to Kolkata, its only international route, were suspended since September last year due to a shortage of passengers.
According to The Daily Star, at least eight private airlines were forced to shut down their operations in the past 25 years. Regent Airways, the last private airline to shut down operations, owes Rs 283 crore, United Airways Rs 355 crore and GMG Airlines Rs 368 crore, according to data from the Civil Aviation Authority of Bangladesh.
Kaji Wahidul Alam, editor of Bangladesh Monitor, said bangladesh’s aviation industry has not increased due to regulatory weaknesses, expensive tariffs, high jet fuel prices, and improper protection of state carrier Bangladesh Airlines.
