The Civil Aviation Authority of Bangladesh has run into financial problems after it was determined that Biman Bangladesh Airlines and several others local carriers have huge debts towards the regulators, in the form of handling, landing and other charges.
According to the Financial Express, Biman’s debt amounted to BDT20.27 billion (US$259 million) by the end of August. While the carries does make some payments, they’re insufficient to cover the amassed debt towards the regulator.
“Payment of income tax to the government, financing different development projects, maintenance and overhauling activities of the CAAB are being hampered due to delay in payments from the state-run airline and other private domestic airlines. As a result, we face liquidity problem implementing different mega projects when some airlines don’t pay their outstanding charges in time”, CAAB Member (Finance), Mizanur Rahman, said.
In the past, the CAAB has threatened carries with the suspension of their operational licenses if outstanding service charges were not covered in due time.