GMG Airlines suspends operations in challenged Bangladeshi aviation industry

The challenges facing the Bangladeshi aviation industry have been further highlighted in the past week with GMG Airlines suspending operations on 30-Mar-2012. GMG plans to restructure its operation to respond to a number of structural challenges in the industry, including rising competition from Middle East airlines. Meanwhile, the situation at national flag carrier Biman Bangladesh Airlines remains fragile, with the heavily indebted carrier facing a further wave of industrial unrest this month.

International airlines currently hold around two thirds of international capacity to/from Bangladesh. Just under 30 airlines are active in the market, although Biman Bangladesh Airlines remains the largest carrier operating to/from the country with a 28% international capacity share. Despite it being a price-sensitive market environment (which should support low cost carriers), development on this front has been limited and the market remains dominated by full service airlines.