Global aviation ground-handling giants are offering multi-million-dollar investments, cutting-edge equipment, and thousands of local jobs as they compete to become the second operator at Hazrat Shahjalal International Airport's Third Terminal.
However, negotiations between the Civil Aviation Authority of Bangladesh (CAAB) and the Japanese consortium overseeing the terminal have hit a key hurdle: local ownership. CAAB is insisting that foreign operators form genuine equity partnerships with Bangladeshi companies rather than simply employing local staff or providing sub-contracts.
Four international firms—Türkiye's Çelebi Aviation, UK-based Menzies Aviation, Switzerland's Swissport, and the UAE's dnata—have been shortlisted by the Japanese consortium for CAAB's clearance. The selected operator will run passenger ground handling alongside state-owned Biman Bangladesh Airlines, breaking Biman's long-standing monopoly.
This will introduce a second passenger ground handler at the third terminal, giving airlines an alternative to Biman. Cargo handling, however, will remain exclusively with Biman.
A senior CAAB official, speaking on condition of anonymity, emphasised that international expertise must translate into long-term commercial value for Bangladesh.
"Even if a foreign company joins the ground-handling operation, it is essential to train local employees, integrate them into the workforce, and create genuine local partnership opportunities," the official told The Business Standard.
The official noted that creating jobs is distinct from offering an equity stake: "Whether foreign companies will retain all their earnings or offer local firms an ownership share remains a key point under discussion."
CAAB is pushing the Japanese consortium to finalise the agreement ahead of Prime Minister Tarique Rahman's scheduled visit to Japan later this month. However, complex negotiations continue over a draft agreement spanning roughly 450 pages, with several critical issues unresolved.
A revenue-sharing model of 27:73 in Bangladesh's favour has been discussed, but CAAB maintains that this is separate from equity participation in the operating business itself.
More than 98% complete, Hazrat Shahjalal International Airport's Third Terminal remains unused for 22 months. The government plans to begin limited operations on 16 December.
Menzies pledges $12m investment, over 1,000 direct jobs
Menzies has presented a concrete proposal comprising over $12 million in capital expenditure for ground support equipment (GSE), technology, and training.
Charles Wyley, Menzies' executive vice-president for the Middle East, Africa, and South Asia, stated that the company plans to create over 1,000 direct jobs (99% targeted at local recruitment) and support an additional 4,500 indirect jobs. The company also intends to establish an aviation training academy in Bangladesh to build long-term local capability.
Menzies has presented a concrete proposal comprising over $12 million in capital expenditure for ground support equipment (GSE), technology, and training.
Charles Wyley, Menzies' executive vice-president for the Middle East, Africa, and South Asia, stated that the company plans to create over 1,000 direct jobs (99% targeted at local recruitment) and support an additional 4,500 indirect jobs. The company also intends to establish an aviation training academy in Bangladesh to build long-term local capability.
Çelebi signals investment well above Menzies, eyes, 1,500 jobs
Çelebi has indicated its financial commitment will significantly surpass Menzies' $12 million benchmark.
Dave William Dorner, group CEO of Çelebi Aviation Holding, noted that their proposal includes investing heavily in eco-friendly, electric ground-support equipment. To prevent launch delays, Çelebi can temporarily bring in equipment from its international network while new orders arrive. The firm expects to create between 1,000 and 1,500 local jobs, mirroring its operations in Indonesia, where 99.5% of its 1,000-strong workforce is local.
On baggage handling, Dorner said the terminal operator would set service-level standards for ground handlers and airlines operating their own ground services.
He did not commit to specific first-bag or last-bag delivery times but said Çelebi would seek to meet agreed standards and avoid penalties for poor performance.
"If we are selected, I believe passengers can have a much better experience," he said.
Swissport promises high-standard investment, local leadership
Swissport is bidding via a joint arrangement with local enterprise Rhythm Group. While specific figures regarding investment and headcount have not yet been released, a senior Rhythm Group representative confirmed that Swissport aims to deliver high-level operational standards while prioritising the development of Bangladeshi leadership.
dnata highlights technology and global experience
Part of the Emirates Group, dnata brings operations across 35 countries and 174 airports. While company executives met with the civil aviation minister earlier this year, details on planned investment and hiring targets remain undisclosed. UAE embassy sources highlighted dnata's tech-driven operational systems as a major factor for improving safety, efficiency, and passenger throughput.
CAAB wants ownership, not just employment
Negotiations with the Japanese consortium extend beyond selecting a foreign operator.
A CAAB member said the draft agreement runs to around 450 pages. More than 1,000 comments and proposed amendments were initially raised, with 90-95 major issues identified for further discussion. Some remain unresolved, delaying the agreement, he said.
One key issue is the distinction between revenue sharing and ownership. A 27:73 revenue-sharing arrangement has been discussed, with 27% going to the Bangladeshi side.
The official said this is separate from local ownership in the ground-handling business. CAAB wants Bangladeshi companies to share in the business and its long-term commercial opportunities, rather than benefit only through jobs and training.
Full transition could take a year
Starting with limited operations beginning in December, officials said initial plans are for accommodating just two arriving and two departing flights daily.
Opening the terminal and deploying the second ground-handling operator are parallel but distinct processes.
Under the plan, the new operator could handle around 25% of traffic within six months of signing the agreement, with the full transition taking about a year. Biman would continue handling ground services initially, with operations shifting gradually to the new operator.