Abnormal air fare to Middle Eastern countries

https://www.observerbd.com/news.php?id=345431

Published : Thursday, 23 December, 2021 at 12:00 AM

M S Siddiqui

Abnormal air fare to Middle

Eastern countries

Because of the Covid-19

pandemic, the Bangladeshi

migrant workers in the

Middle East have faced a

myriad of adversities such

as unemployment, short

working hours, isolation,

poor quality of living, and

mental pressure while their

dependents at home are

facing financial crisis due to

the limited or reduced cash

flow from their working

relatives. Many of them

were forced to return home.

And just as Middle Eastern

economies are opening up

again and Bangladeshi

workers have begun going

to their workplaces with the

waning of the coronavirus,

their airfare has been soared unreasonably high.

As many as 7.5 million of Bangladesh's 10 million overseas workers are

stationed in the Middle East. Now the market has been opened up and many

expatriates who were came back from Middle eastern countries are trying to go

back to their workplaces. Outbound migrant workers are the key contributor to

our economy. Charging higher on them, harassing them in the airports, and

leaving their issues unattended are tantamount to ignoring their immense

contributions. The air ticket syndicate must be busted for the sake of the

economy, and for upholding the country's image.

It is an unholy nexus that involves local and foreign airlines in the entire

process. The curtail is strong. Until and unless the airfares are not brought down

to a reasonable level, it will be increasingly difficult for these poor people to go

to their working destinations.

Members of Bangladesh Association of International Recruiting Agencies

alleged that a syndicate (curtail) is blocking all air tickets and charging

abnormal high prices from the expatriates. "The real price of one-way ticket

from Bangladesh to the Kingdom of Saudi Arabia is Tk40,000, but it is sold by

the syndicate at more than Tk 90,000," said Md Fakhrul Islam--former

Treasurer of BAIRA on 8th December 2021. He urges the government to take

immediate actions to protect the migrant workers. The fare from Bangladesh to

the countries in the Middle East is unreasonably high comparing with the

neighbouring India, Pakistan, Nepal and Sri Lanka.

They said, "The fare from Dhaka to Riyadh for a six hours journey is Tk 80,000

to Tk 90 thousand, whereas, from Dhaka to New Yurok for a 23 hour journey-it

is Tk 65 thousand only. It is really surprising. Biman is national career and some

other airlines, who operate flights to Middle Eastern destinations are Emirate,

Fly Dubai, Air Arabia, Oman Air, US Bangla Airlines, Salam Air etc. The

Bangladesh Pilgrims and Hajji Welfare Council on 19th December said some

errant agencies have been charging extra on the Middle East-bound air ticket in

collusion with Biman Sales Office in Motijheel.

A few days ago, the Bangladesh Association of International Recruiting

Agencies (BAIRA) stated, Airlines are imposing extra fares on expatriates at

will. It does not appear that any agency is monitoring the situation." Of course,

the price of tickets can increase due to increasing demand. However, the recent

spike in airfares has crossed all limits.

Quite interestingly, such a phenomenal hike in airfares has not been observed in

neighbouring countries. The fare for the Colombo-Riyadh route is Tk 38,000,

while for the Kathmandu-Riyadh route, it is around Tk 45,000. The airfare for

the Mumbai-Riyadh route is around Tk 32,000. These figures speak volumes

and clearly indicate that something is rotten in the sector.

Air tickets from India, Pakistan, Nepal and Sri Lanka to the Middle-Eastern

countries cost between Tk20,000 and Tk30,000 but Bangladeshis have to pay

around Tk75,000-95,000 for the same destination. It costs around Tk 13,500 to

fly to Riyadh from Kolkata and around Tk 17,000 to Dubai from Mumbai, said

Fakhrul Islam, president of the Recruiting Agency Welfare Organization of

Bangladesh. A migrant worker in Nepal spends Tk 35,000 to fly to Riyadh and

Tk 20,000 to go to Dubai while it costs between Tk 39,000 and Tk 43,000 to fly

to Riyadh from Sri Lanka, he said. Meanwhile, a six-hour journey from Dhaka

to Riyadh costs Tk80,000-90,000. But a 23-hour journey from Dhaka to New

York costs only Tk65,000.

Manpower recruiting agencies claimed that migration costs have increased

owing to high ticket prices. Now, an aspirant migrant needs Tk2-2.60 lakh to go

to Saudi Arabia with a working visa. The migration cost has increased by

around Tk50,000 due to high ticket prices," said Shamim Ahmed Chowdhury

Noman, immediate-past general secretary to the Bangladesh Association of

International Recruiting Agencies (Baira). Even some Ministers are also

concerned of the situation. Foreign Minister Dr AK Abdul Momen on

December 18, 2021 said he had sought the intervention of Prime Minister

Sheikh Hasina on high air fares to the Middle East amid widespread outcry

among expatriate workers, according to newspaper report.

According to media reports, the Expatriate Welfare and Overseas Employment

Ministry recently wrote to the Ministry of Civil Aviation and Tourism, asking it

to reduce airfares for flights to Middle Eastern countries amid demands from

recruiting agencies to reduce fares for migrant workers. Minister gave a demi

official (DO) letter to the inter-ministerial meeting to address the issue.

Bangladesh risks losing its labour market in the Middle East due to the high cost

of air tickets. Manpower recruiters demanded a high-level investigation to

identify the 'syndicate' or curtail, which was responsible for the present crisis of

air flights and increasing airfares. They also suggested forming a high-powered

regulatory board from the Prime Minister Office to check the 'ticket syndicate'

and stop malpractices regarding airfares. It appears the air ticket syndicate

(curtail) is above any law, making nuisance and taking advantage of not being

monitored properly by any regulatory agency. The cartel has been charging

exorbitantly on the Middle East-bound passengers, be they are migrant workers

or pilgrims.

The issue may be an offence under section 15 and 16 of Competition Act,

2012.News reports indicates that due to high demand the airlines charging high

price, it may be treated as price fixing which are the ingredients of Cartel and

Abuse of Dominant position. The relevant information indicates that the current

issue is a serious competition issue, so as a market regulator BCC may start

inquiry/investigation and interim order. I shall submit further supporting

documents and paper during hearing on this matter.

There are some case references of punishment of Airlines for curtail to increase

of fare in EU and India. The Competition Commission imposed very high

penalty on Airlines involved in the curtail. As a Legal Economist, newspaper

columnist and conscious citizen, I am writing to draw your kind attention. I

presume there is a price fixing and curtail of few Airlines and felt my

responsibility to file the complaint to safeguard interest of poor wage earners

who in major contributor to our foreign currency reserve. It has greater national

interest.

M S Siddiqui is a Legal Economist