US Tariff Reduction Hoped as Biman Plans Aircraft Expansion

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US Tariff Reduction Hoped as Biman Plans Aircraft Expansion

B Mirror Report:  As negotiations continue in anticipation of a possible bilateral trade agreement, the government anticipates additional reductions in US tariffs on Bangladeshi exports, according to Sheikh Bashiruddin, adviser for commerce, civil aviation, and tourism.

Bangladesh has successfully negotiated down a 37 percent reciprocal tariff imposed by the United States to 20 percent,” the adviser said during a press briefing held at the Secretariat. The country is looking for further reductions, including zero tariffs on clothing, which is its main export.

Speaking on aviation advancements, Sheikh Bashiruddin stated that Bangladesh has the capacity to export approximately Tk 100,000 crore to the US, a figure that may rise dramatically with improved market access. In addition to other import liberalization measures, the government has suggested buying 25 Boeing airplanes to alleviate the USD 6 billion trade gap and the business uncertainties brought on by the US tax. He pointed out that 500,000 to 700,000 jobs are supported by exports totaling USD 8 billion.

Sheikh Bashiruddin emphasized the development goals of Biman Bangladesh Airlines and stated that the company is examining proposals from Airbus and Boeing. Biman intends to buy 14 Boeing aircraft, and talks are still in progress, based on technical and financial assessment. If negotiations are successful, the agreement might be completed before the next election, he continued.

Regarding aviation changes, the adviser stated that on January 1, the government passed the Travel Agency Registration and Control (Amendment) Ordinance 2026 and the Civil Aviation (Amendment) Ordinance 2026 to introduce license and accountability for ticket distribution, as well as to stop ticket syndication and blocking. Due in part to these steps, airfares have decreased. For example, on the Dhaka-Jeddah route, tickets have decreased from Tk 105,000 last year to Tk 53,000–60,000 this season.

Sheikh Bashiruddin further mentioned that Biman is now running scheduled flights to Saudi Arabia rather than empty charter planes, which has resulted in a Tk 54,000 reduction in Hajj prices. This makes it possible to sell return tickets for Tk 20,000, giving foreign employees the chance to return home before Eid.

Responding to criticism, Civil Aviation and Tourism Secretary Nasreen Jahan said the ministry’s reforms aim to ensure affordable overseas travel, particularly for migrant workers. She clarified that Sheikh Bashiruddin serves as Biman chairman alongside his advisory role, citing past precedents.

The secretary said the January 1 ordinances have strengthened oversight of ticket distribution, resulting in a visible decline in fares, and noted that around 80,000 return Hajj tickets will be available at subsidised rates. She also highlighted efforts to streamline leasing policies of Civil Aviation Authority of Bangladesh (CAAB) properties through open tendering, while retaining CAAB authority.

Nasreen Jahan added that Biman currently operates 19 aircraft and plans to add four more by 2030, emphasizing that fleet expansion is critical to maintain existing routes and launch new services. She confirmed that the Boeing procurement process, initiated in 2024, is ongoing and not being rushed.

Sheikh Bashiruddin is merely a shareholder in Akij Bashir Aviation Limited, which submitted an application for a helicopter operating license in March, the secretary explained in reference to private aviation. CAAB is presently reviewing the application.

She stated that the fare-filing obligation mentioned in the January 1 law was in place under earlier standards, referring to the International Air Transport Association (IATA). The ministry has already notified IATA headquarters that CAAB will only provide guidance in situations involving monopolistic or unfair price manipulation.

 

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