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  • United Airways Bangladesh suspend operations

    All services have been stopped as boss has resigned and the airline have financial issues.

    United Airways (Dhaka) has indefinitely suspended operations starting September 24 after the resignation of its founder, managing director and chairman Tasbirul Ahmed Choudhury. According to a statement made by flight operations director M Elias to the Daily Star, flights had to be suspended as the new board of directors did not yet meet to resolve the carrier's cash crisis. According to Elias, the company no longer has fuel or "other logistics necessary" to continue operations and the new management and board would not have taken any "visible step in the last three days to assure investors as well as the anxious employees that things are under control". Approximately 200 out of 1100 employees have reportedly asked to be released from the company following Choudhury's forced resignation. United has been plagued by financial problems for several years and has recently come under increasing pressure from several start-ups entering the Bangladeshi market including NovoAir (VQ, Dhaka), Regent Airways (Dhaka) and US-Bangla Airlines (BS, Dhaka). It currently operates a fleet of two A310-300s, five MD-83s, three ATR72-200s and one Dash 8-100 (although several aircraft have been inactive recently) offering domestic services from Dhaka to Barisal, Chittagong, Cox's Bazar, Ishhurdi, Jessore, Rajshahi, Saidpur and Sylhet as well as international flights linking Chittagong and Dhaka with Doha Hamad International, Jeddah, Karachi International, Kathmandu, Kolkata, Kuala Lumpur International, Muscat and Singapore Changi.


  • #2
    Resumed on Saturday after three day hiatus.

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    • #3
      Originally posted by LUNN View Post
      Resumed on Saturday after three day hiatus.
      ...there are easier ways to get a three day weekend, no?

      Back to the matter, what does this mean for the financial solvency of the airline? Is it the beginning of the end? I hope that they survive, and thrive.
      Whatever is necessary, is never unwise.

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      • #4
        They are still in a soup as far as those issues are concerened.

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        • #5
          Originally posted by LUNN View Post
          They are still in a soup as far as those issues are concerened.
          So it seems, are most Bangladeshi carriers. This on the heels of the news of Biman's route cuts - a sad few weeks for the nation's aviation sector. Are international carriers and/or LCCs to blame? Or, mismanagement?
          Whatever is necessary, is never unwise.

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          • #6
            All of South Asia is a mesed up region, this si quite normal in this part of the world.

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            • #7
              Originally posted by LUNN View Post
              All of South Asia is a mesed up region, this si quite normal in this part of the world.
              Not necessarily so. Indian LCCs seem to be doing fantastically. How are the LCCs in Pakistan doing? Is it fair to see consider AirBlue as one, or is that not a fair label?
              Whatever is necessary, is never unwise.

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              • #8
                Not according to Indian forums, Spice, Go, Konnect are constantly being put down, Spice is in some mess too, Konnect is folding back into Jet, Go seems not really there, only Indigo is good.

                Pakistani ones are same playing safe with their bread and butter routes, Shaheen have some aircraft inactive for various reasons, Air Blue are operating aircraft from Windrose in their colourful livery they even used that to launch Riyadh recently thats bad in my opinion, their own branded fleet is down to just four aircraft three of which are leased, just like when they started a decade ago, no big plans from either regarding routes or new aircraft, Shaheen were due to start Dhaka and Bangkok nothing came about despite the promos.

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                • #9
                  Originally posted by LUNN View Post
                  Not according to Indian forums, Spice, Go, Konnect are constantly being put down, Spice is in some mess too, Konnect is folding back into Jet, Go seems not really there, only Indigo is good.
                  Ok, let's break it down.
                  SpiceJet's services have been a little sporadic since inception, but it has always been blamed on lack of aircraft. In March, they placed a $4.4 Billion USD order for 42 737 MAX-8s. At present, if no more 737s are ordered, the MAX-8s will either directly replace their fleet of 41 737s (current 737-800s and 737-900s), or perhaps they will be all added capacity, or a mix of both. So far, they have grown well in 2013, and are poised to not slip in their '2nd largest domestic carrier' title, hopefully keeping it and adding more regional/international destinations. Yes, there was a profitability issue in 2013 due to fuel costs, but an order for that much surely shows their potential to find investors and financing to back up the business plan.

                  Indigo is the powerhouse, and poised to just roar in the face of the competition.

                  Konnect being folded back into the parent company only makes financial and organizational sense. It was a matter of time and really, Konnect was only Jet's response to Kingfisher's moves. As Kingfisher is no more, it is time for Jet to get back to their core business model, and strengthen what works. The partnership with Ethiad will, hopefully, allow them the capital to re-invest at the core, and re-focus.

                  Go, is as cautious as you make AirBlue out to be. Not really expanding, the smallest carrier by market share, and cautious is their modus operandi. They are not willing to take big risks considering that the shake offs in the market can be harsh. That said, they signed a $ 5.2 Billion USD order for 72 A320 NEOs, but those will arrive at the cautious 1 or 2 a month (15 aircraft max per year). It's cautious but considering the Wadias, not unexpected.

                  Then there is the TATA airlines that are being launched soon.

                  Originally posted by LUNN View Post
                  Pakistani ones are same playing safe with their bread and butter routes, Shaheen have some aircraft inactive for various reasons, Air Blue are operating aircraft from Windrose in their colourful livery they even used that to launch Riyadh recently thats bad in my opinion, their own branded fleet is down to just four aircraft three of which are leased, just like when they started a decade ago, no big plans from either regarding routes or new aircraft, Shaheen were due to start Dhaka and Bangkok nothing came about despite the promos.
                  Shaheen is an odd operation for me. I mean, I understand that the Pakistani market is significantly different from the Indian market, but I don't get a reliable feel from them.

                  As for AirBlue - was the A340 (for the long-haul ops) leased, or did they purchase them. Why didn't the route work? I wonder if it was such a shock to the system that it hurt them fianancially, or if leasing is such a great deal that it is better than outright purchasing? Is the Pakistani market ready for airline expansion? Or, are domestic matters keeping people at bay? I guess you're right, with PIA hoping to recover, AI hoping to find its footing (and the Goverment footing the bill in the meanwhile) and Biman sliding.

                  AirBlue was one that was dear to me in that I hoped that it could challenge PIA, in much the same what that Jet shook AirIndia - stunning product, new aircraft and a willingness to go after long-haul.

                  Here's another question (I know, enough already), how is the Pakistani government when it comes to de-regulation and protection PIA? Is it possible that the government is stifling the market?
                  Whatever is necessary, is never unwise.

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                  • #10
                    Air Blue A340s were leased for five years but they had tech issues just about every other day and the performance also wasnt satisfactory. They wewre only for long haul UK routes Birmingham was launched with them and lasted only three months, while they helped Manchester go nonstop, why the routes didnt work? I have no idea, perhpas the addition of Jeddah made them relaise they could do better deploying aircraft on that route, but again the A340s were only used there for a short while and it might have not made sense to return to MAN with a one stop A320 though that was to happen via Istanbul.

                    They seem to have lost their visison when teh orignal MD left, he was the one that made teh airline what it was when it started.

                    Govt. seems to interested in encouraging more private sector airlines and investment in airports is also beeing brought in, but they are protective about PIA too so de-regualtion as such wont happen.

                    Shaheen was supposed to be the Air Blue of Pakistan in early 1990s all the other new startups were sub-standard carriers compared to them, but things went down hill afterwards for unknown reasons, it was part of a civilian subsidiary of the Air Force run by retired personell called Shaheen Foundation, they still hold one percent stake in it.

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