Aviation stakeholders oppose move to scrap mandatory GSA provision

Aviation stakeholders have voiced strong opposition to the government's move to scrap the mandatory provision requiring foreign airlines to appoint local General Sales Agents (GSA).

They warned that such a step would undermine regulatory oversight, compromise transparency, and hurt both employment and revenue generation.

According to industry estimates, the government risks losing more than Tk 100 crore in direct annual revenue and facing an additional outward foreign exchange flow of over Tk 500 crore if the provision is withdrawn.

The reaction comes as Civil Aviation and Tourism Adviser SK Bashir has called an inter-ministerial meeting today to review the The Civil Aviation Act, 2017, which made it compulsory for foreign airlines operating in Bangladesh to appoint GSAs.

Industry insiders and members of the newly formed GSA Forum said the provision ensures accountability for foreign carriers and enables the Civil Aviation Authority of Bangladesh (CAAB) to monitor their operations effectively.

"Revising this law would dismantle a vital oversight mechanism, allowing foreign airlines to operate without local accountability," said KM Mozibul Hoque, chairman of TAS Aviation Services.

He urged the government to consult with industry stakeholders before making any amendments, dismissing the perception that GSAs drive up ticket prices.

"GSAs focus solely on airline promotion and marketing. Ticket sales and pricing are controlled entirely by the airlines," he added.

Currently, GSA operations employ over 5,000 people directly, with another 15,000 indirectly dependent on the sector.

Forum leaders warned that removing the GSA clause could lead to widespread job losses, as foreign airlines would likely appoint only a small number of local staff.

Citing past experiences, they noted that when foreign carriers such as Emirates, Qatar Airways, Saudia, Thai Airways, and Air India operated in Bangladesh without GSAs, the market saw allegations of corruption, mismanagement, and long ticket queues -- especially affecting Bangladeshi expatriates.

"The situation improved dramatically after GSAs became mandatory," Hoque said.

The GSA system also generates significant government revenue through taxes and regulatory fees from local agents -- income that would disappear if the requirement were lifted.

Aviation expert ATM Nazrul Islam said it would not be proper if the government finally takes this decision.

"Usually, a GSA represents a respective airline. If any airline suddenly vanished from a country, we would not be able to catch this airline. In that case, it is the GSA that is supposed to protect the customer's interest," he added.

"Under this consideration, I will urge the government to rethink its move," he said.

Kazi Wahidul Alam, another aviation expert, said it is better for several reasons if GSAs exist, but they should follow international standards while carrying out their activities.