Regent COO: High surcharge a bane for aviation industry

HG Aviation Ltd (Regent Airways) Chief Operating Officer said local private airlines have been badly affected by the high interest on airfare surcharge and parking charge. The 76% interest on surcharge is “horrible”, said Ashish R Choudhury during an interview with Dhaka Tribune recently, while sharing the airline’s expansion plan and profitability under the present circumstances.

Launched in November, 2010 the Regent Airways, owned by Chittagong-based Habib Group, focuses on international flights rather than domestic operation. However, it opened its international wing in 2013 with flights to Malaysian capital Kuala Lumpur. Now it flies to four other global destinations- Bangkok, Singapore, Kathmandu, Kolkata and Muscat.

Dhaka Tribune: Regent operates more international but less domestic flights than any other private Bangladeshi airliners. It operates flights to five international destinations from both Dhaka and Chittagong. Any expansion plan?

Ashish: Yes. We recently launched flights to Muscat and now have plan to include Kathmandu in our route map soon. We are waiting for some facility improvement at the Kathmandu airport, which is yet to complete. Regent also plans to introduce flights to Colombo and Guangzhou (China) this year, and to Jeddah and Doha.

What do you do to make your airlines economically viable organisation? Is the Regent in right direction in terms of business plan?

To make a company profitable, there is no other alternative to initiating a plan. We believe that the company is on the right track in its planning and choosing pathways of going forward.

Can you utilise all the aircraft in fleet to the maximum?

Even the state-run Biman Bangladesh Airlines cannot make the maximum use of its aircraft although it has the highest number of aircraft of all airlines in Bangladesh. Biman brought two Boeing 777-200 ER from Egypt, but has to keep them unutilised. But Regent is utilising almost all its aircraft maintaining a proper roster. As far as I know only one aircraft is not being used.

However, we plan to use it launching Colombo flights. Proper utilisation of the fleet help the company reduce cost.

How do you assess the present situation in the country’s aviation industry? Is it okay for the industry’s proper growth?

Airlines are paying 76% interest on airfare surcharge, that is horrible. The actual debt of the GMG airlines (now closed) was Tk40 crore, but the interest totalled Tk70 crore. Due to this high interest rate, many airliners would be forced to shut down the business. Parking charge is also an impediment.

How do you evaluate foreigners’ appointment in top position by different Bangladeshi airlines including Biman?

Though Biman appointed foreigner as CEO, there was no positive impact. The CEOs will need to understand the country and local passengers’ mindset. Foreign managers were unable to understand these things. The appointment of foreigners failed to bring any positive changes to the airlines.

For example?

Private GMG airlines was profitable until appointment of a foreigner as CEO. After appointment of a foreigner, the management leased a Jambojet aircraft. At that time jet fuel price increased three times. But the management couldn’t predict the surge in fuel price. Many airlines in Europe and America shut down due to higher fuel price. However, I think foreigners can be appointed in technical side of the airlines where we still lack skilled manpower. The appointments could also be made in quality control and revenue management sectors of the companies.

You were also with the GMG airlines?

When I was with the GMG, eighty percent of the pilots were foreign recruits. Later I downscaled it to less than 40%. The same situation was in the Regent, and it was later decreased to 30%.

How are you preparing new pilots?

I tried my best to give more chances to young boys and girls to be cockpit crew as many young pilots are unemployed. I have told former Biman chairman not to overcharge the students at the Biman training institute.

Though we have only one Dash 8, in last four months, Regent trained 16 pilots. It still had 7 pilots in the pipeline to be appointed.

However, Biman later hired them. Ultimately, we suffered. As national flag carrier, Biman should take the responsibility of training more pilots.