Bangladesh aviation: A review of 2009 and outlook for 2010

International traffic to and from Bangladesh has experienced steady growth in recent years. However, due to the poor performance of domestic airlines, foreign carriers have grown to control 64% of capacity to/from Bangladesh, although the forces of protectionism could dent progress. To slow the further expansion of foreign carriers in Bangladesh, the Bangladeshi Government suspended its short-term open skies trial in 2007 and now operates an essentially protective aviation policy. For those carriers that can gain access, the Bangladesh market is relatively attractive, due to reasonable economic growth rates, weaker home carriers, and the country's large population, with some 5 million Bangladeshi migrant workers abroad generating significant VFR traffic. It really is a market made for focused low cost carriers, but government strategy supports the traditional flag carrier model - and appears unlikely to change any time soon.

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