Government intervention cuts airfares by 75 per cent

Airfares, particularly for flights to Saudi Arabia, have dropped by nearly 75 per cent following government intervention and stricter regulations, according to the Association of Travel Agents of Bangladesh.

Between December and February, passengers faced exorbitant fares for flights from Dhaka to major Saudi cities, with prices soaring to Tk 190,000 under group booking schemes.

However, ticket prices have now dropped dramatically, with fares available as low as Tk 48,000 to Tk 50,000 following government monitoring. Some airlines are even offering tickets for Dhaka-Dammam and Dhaka-Riyadh routes at prices as low as Tk 35,000.

To curb soaring airfares and establish market discipline, the Ministry of Civil Aviation and Tourism issued a directive on February 11 enforcing stricter regulations on ticket bookings.

The circular aimed to enhance transparency and eliminate artificially inflated prices for key destinations such as Jeddah, Madinah, Dammam, and Riyadh.

Under the new rules, air tickets must now be booked with the passenger’s name, passport details, and a photocopy of the passport. This measure has prompted airlines to release previously blocked tickets, increasing seat availability in computer reservation systems.

Consequently, both passengers and travel agencies now have real-time access to ticket fares and seat availability, fostering competition and driving down prices.

The directive addresses the widespread issue of artificial seat shortages, which contributed to inflated airfares in recent months.

In a statement, ATAB has praised the government’s intervention, calling it a timely and necessary step to ease financial pressure on travellers, particularly migrant workers who rely on affordable air travel.

In its statement, ATAB acknowledged the contributions of chief advisor Professor Muhammad Yunus, expatriate welfare and overseas employment advisor Asif Nazrul, special envoy for international affairs Lutfey Siddiqi, and civil aviation and tourism secretary Begum Nasrin Jahan in addressing the issue.

With the directive in place and a commitment to ongoing monitoring, ATAB expressed optimism that Bangladesh’s air travel market will remain disciplined and that affordable ticket prices will become the norm.

Earlier this year, on January 26, ATAB had urged government intervention during a press conference, calling for immediate action against soaring ticket costs and market syndication.