Biman not paying dues to CAAB

Biman Bangladesh Airlines has come under criticism for failing to address long-standing dues owed to the Civil Aviation Authority of Bangladesh (CAAB), according to insiders.

As of current reports, the airline owes a staggering Tk 56 billion, including an original due of Tk 10.02 billion, and has failed to make the monthly payments it had promised since January 2022.

The CAAB, a regulatory body overseeing all aviation activities, has sent multiple letters and attempted to organize meetings with Biman representatives, but to no avail. The national flag carrier not only skipped a significant bilateral meeting on June 14, but has also shown little interest in scheduling further discussions, sources say.

The Chief Financial Officer of Biman Bangladesh Airlines, Nausad Hossain, explained the situation.

"These dues date back to 2019. We are trying to pay it off gradually. We could not attend the meeting called by CAAB as the ministry had a meeting on the same day,” he said, implying that the debt issue is not a cause for concern since both Biman and CAAB are government organizations.

Yet, with domestic and international airlines owing tens of thousands of crores of taka to CAAB, the lack of initiative from Biman in settling its debts stands in stark contrast.

Despite a 6 percent monthly surcharge for overdue payments, the company has not only neglected its financial obligations but has also failed to provide daily passenger lists, causing CAAB to lose substantial revenue.

Biman, when renewing the Air Operator Certificate (AOC), had proposed a payment plan to cover around Tk 44.43 billion by 2026.

According to the proposed payment plan, Biman committed to a yearly payment schedule: Tk 3.4 billion in 2022, Tk 4.4 billion in 2023, Tk 5.9 billion in 2024, Tk 7.4 billion in 2025, and Tk 2.33 billion in 2026.

However, despite this commitment, Biman fell short of its monthly payment goal, failing to meet the agreed-upon Tk 283.3 million every month in 2022.

This refusal to cooperate has caused frustrations within CAAB, with one official admitting to being "tired of asking for dues from Biman."

Despite the ongoing conflict, both Biman and CAAB officials remain reticent about sharing the specifics of the situation, owing to their common status as government-owned entities.

When approached for a comment, Md Aziz Taher Khan, Member (Finance) at CAAB, maintained a positive outlook, stating, "Collecting dues from airlines is a continuous process. We are hopeful that all airlines operating in the country will pay our dues in time."

This controversy comes in light of CAAB's previous refusal in November last year to approve a proposal by the Ministry of Civil Aviation and Tourism, which aimed to waive Tk 34.49 billion as a surcharge Biman Bangladesh Airlines owed.