SECOND EDITION
SATURDAY, FEBRUARY 13, 2016
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Falgun 1, 1422, Jamadiul Awal 3, 1437
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Regd No DA 6238, Vol 3, No 298
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www.dhakatribune.com | 32 pages | Price: Tk10
INSIDE Jamaat, militants planning attacks in CHT Members of Jamaat-e-Islami and several outlawed Islamist militant groups have built up a strong base in the Chittagong Hill Tracts to carry out massive attacks on the indigenous peoples and their establishments. PAGE 3
Dhaka grapples with illegal parking
More and more people are parking vehicles on busy city streets, arguing that there is inadequate or no parking space available, subsequently contributing to anguishing traffic congestion in Dhaka. In most cases, illegally parked vehicles occupy almost half of the road, particularly in front of shopping malls, markets, offices and schools. PAGE 5 How come Bangladeshi travellers are not benefiting from falling international jet fuel prices?
BIGSTOCK
Airfares fail to drop even as fuel prices plummet n Ishtiaq Husain Bangladeshi air passengers are not benefiting from the nosedive taken by international jet fuel prices, which have hit their lowest levels in 11 years. Globally, the slump in oil prices has been manna from heaven for flyers, allowing them to pay significantly less than before for airline tickets. As Brent crude, the benchmark in oil prices on the international market, fell to an 11year low at around $35 per barrel from previous highs of $120 per barrel, most American and European airlines reduced airfares by 11-14% last year. “We’ve seen typical domestic prices drop about 14% over the past year,” Patrick Surry, chief data scientist at airfare prediction company Hopper, said to an international news agency about global airline ticket price trends. Yet despite state-run Bangladesh Petroleum Corporation’s (BPC) reduction of A-1 jet fuel prices by 7.93% to $0.58 per litre on December 24 last year, local airfares remain
unchanged. In some cases, tickets in this era of cheap fuel are more costly. The BPC reduced the price of jet fuel twice previously last year – in February and August. But Bangladesh is apparently impervious to these dramatic changes in commodity prices and airline operating costs. One reason for this, a former airline industry leader says, is the burdensome fee and tax structure that has clipped the wings of the local aviation industry. Former Civil Aviation Authority of Bangladesh (Caab) chairman and aviation expert Air Commodore (retd) Iqbal Hossain said the tax system must be altered in order to enable the aviation industry to soar. “The airfare of local airlines is not very high compared with those in other countries. But they have to pay around 70% of the total fare as taxes and charges. “That is why passengers are not benefiting from reduced jet fuel prices,” he said. The failure of local airline ticket prices to decrease in tandem with declining costs has left Bangladeshi airline passengers high and dry.
In fact, while foreign travellers enjoyed cheaper tickets, Bangladeshis who bought their tickets here were actually charged more this year by some carriers on certain routes. Ripon Kumar Das, who lives in Milan, bought his ticket in Italy for less than Tk50,000 from a major international airline. But he had to pay Tk20,000 more for the return ticket bought in Dhaka. The Association of Travel Agents of Bangladesh told the Dhaka Tribune that airfares to some European destinations had actually increased by 10-12% last year, the same period that fuel prices were declining. Airfares to most American and Asian destinations remain unchanged. Kazi Wahidul Alam, aviation expert and former member of Biman’s board of directors, said airfare does not just depend on fuel prices. “Prices depend on demand and supply,” he said. But plane ticket prices are notoriously vulnerable to the ratchet effect, whereby an upward trend in cost appears irreversible and keeps prices high. PAGE 2 COLUMN 1
Tk12cr flower bonanza ahead of Falgun, Valentine’s Day
Flower farmers of Jessore are enjoying a flourishing business surrounding their three biggest sale days – Pohela Falgun, Valentine’s Day and Language Movement Day. PAGE 7
Book sales soar with weekend crowd
The first day of the weekend brought thousands of visitors, both adults and children, to Amar Ekushey Boi Mela 2016 yesterday, making the publishers and book stall owners happy, as expected. PAGE 7