New Delhi : With the change of power in Bangladesh politics, challenges have started for Indian companies. As soon as Bangladesh Nationalist Party (BNP) leader Tarique Rahman took charge as the Prime Minister, Bangladesh has taken a strict step against the Indian airline. The Civil Aviation Authority of Bangladesh (CAAB) has completely blocked its airspace for Indian budget airline SpiceJet (SpiceJet Airspace Ban). This tough decision has been taken due to long-standing non-payment of navigation charges by the airline. This step has increased the concern of the Indian aviation sector (Bangladesh Aviation News), because it is directly impacting the flights connecting North-East India.
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Air Navigation Charges outstanding for more than last six months
According to sources, SpiceJet has outstanding air navigation charges for more than six months. According to aviation regulations, when a commercial aircraft passes through a country’s airspace, it has to pay a fixed fee (about $300 per flight for Boeing aircraft). The Bangladesh government has banned overflying of SpiceJet flights demanding the outstanding amount and interest on it. This quick action of the new government led by Tariq Rehman is now being discussed in diplomatic circles also.
Airlines’ fuel costs increase due to increase in flight time
The biggest impact of this air ban has been on those SpiceJet flights which fly from Kolkata to north-eastern states like Guwahati and Imphal. Due to closure of Bangladesh’s airspace, planes now have to travel a long and winding route. According to data from flight tracking website ‘Flight Radar 24’, planes are now taking about 30 minutes extra time to reach their destination. Due to increase in flight time, there has been a huge increase in the fuel cost of the airline.
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“Normal Process” of Aviation Industry
SpiceJet management has issued its own clarification on this matter. An airline spokesperson described the situation as “normal practice” in the aviation industry. He said that we are continuously in talks with the concerned authorities of Bangladesh on all matters including navigation fees and a positive solution will be reached soon. The spokesperson also clarified that there has been no impact on the airline’s regular flight operations and all flights are operating as scheduled. Despite this, as soon as this news came out, there was a decline in the shares of SpiceJet in the stock market.
Airline’s credibility damaged
SpiceJet says that they are in touch with the aviation authorities of Bangladesh and this is just a routine process which will be resolved soon. On the other hand, aviation experts believe that the restriction of international airspace hurts the credibility of the airline. There is dissatisfaction among passengers due to long routes and delays.
Now eyes on Indian Civil Aviation Ministry
After this decision, now all eyes are on the Indian Civil Aviation Ministry (DGCA) whether the government will give any diplomatic intervention to resolve this commercial dispute. Moreover, it will be a big challenge for the financially distressed SpiceJet (which recently reported a loss of Rs 269 crore in the December quarter) to pay these dues as soon as possible so that operations in Northeast India can normalize.
Being seen as a strong message towards India
The biggest side angle of this entire incident is regarding its ‘timing’. In Bangladesh, BNP’s Tariq Rahman has recently taken oath as the Prime Minister after Sheikh Hasina left the country. Such strict action taken against Indian Airlines after coming to power is also being seen from the perspective of changing diplomatic equations of both the countries. It may be a matter of commercial dues, but this attitude of the new leadership is being analyzed as a strong message towards India.
