United Airways BD Ltd, trading as United Airways, was a Bangladeshi airline headquartered in Uttara, Dhaka. Established in 2005, it commenced its flight operations on July 10, 2007, using a Bombardier Dash 8–100 acquired from Island Air. Operating primarily from Shahjalal International Airport in Dhaka and Shah Amanat International Airport in Chittagong, it was the pioneer listed company in Bangladesh’s aviation sector, gaining its listing in July 2010.
Despite its early promise, United Airways BD faced significant criticism for its subpar service, marked by frequent delays, flight cancellations, and inadequate in-flight amenities. This led to a tarnished reputation among passengers. In September 2014, the airline was forced to suspend its services temporarily for three days due to internal conflicts among its Board of directors and mounting financial troubles.
Following turbulence, United Airways experienced another setback when it ceased all operations on March 6, 2016. This closure came after an earlier interruption in service from mid-January to February 24 of the same year, signaling the end of the airline’s operations in Bangladesh.
History of United Airways BD Ltd
United Airways Bangladesh Limited was established in 2005 through the collaborative efforts of Captain Tasbirul Ahmed Choudhury, a British-Bangladeshi businessman hailing from the Sylhet region, and several other entrepreneurs. The company secured its Air Transport Operating License (ATOL) from the Civil Aviation Authority of Bangladesh on June 28, 2005.
The airline embarked on its journey and inaugurated its scheduled domestic operations on July 10, 2007. Its initial routes included flights between Dhaka and Sylhet and Dhaka and Chittagong, utilizing a Bombardier Dash 8–100 aircraft acquired from Island Air. In the subsequent months, United Airways expanded its domestic services to include destinations such as Cox’s Bazar, Jessore, and Barisal. Furthermore, it introduced international flights connecting Dhaka and Chittagong to Kolkata. The company added another Dash 8-100 aircraft in 2008 to bolster its fleet.
In 2009, United Airways BD expanded its fleet with the addition of a McDonnell Douglas MD-83 aircraft, enabling the launch of new routes to London, Dubai, Kuala Lumpur, and Kathmandu.
In 2010, the airline further diversified its offerings by introducing flights to Jeddah and initiating the highly lucrative Sylhet-London route utilizing an Airbus A310-300. Concurrently, United Airways welcomed the arrival of an ATR 72–200 and another McDonnell Douglas MD-83 to its fleet.
Building on its momentum, 2011 witnessed United Airways BD continued growth by acquiring additional aircraft, including another McDonnell Douglas MD-83, an Airbus A310-300, and an ATR 72–200. The airline expanded its network by launching flights to Bangkok and introducing the Dhaka-Rajshahi-Saidpur route.
In 2012, United Airways extended its reach by commencing flights to Muscat from Dhaka and Chittagong, reinstating the Chittagong-Kolkata route, and resuming services to Bangkok. The expansion continued into 2013, adding two McDonnell Douglas MD-83 aircraft and an ATR 72–200 to its fleet. New destinations included Singapore and domestic flights to Ishwardi.
In May 2014, United Airways introduced flights to Doha and had plans to initiate services to Karachi. However, on September 24, 2014, the airline temporarily suspended all domestic and international flights due to a conflict of interest among board members. The abrupt suspension left thousands of passengers stranded in Bangladesh and abroad, resulting in significant disruptions to operations and financial repercussions for investors.
Fortunately, after three days of suspension, operations resumed on September 27, following a consensus among the board members. Despite efforts to overcome challenges, United Airways ceased all operations on March 6, 2016, with all nine of its aircraft reportedly grounded for technical reasons.
In response, the Bangladesh Securities and Exchange Commission intervened by suspending the previous Board of Directors and appointing a new board with eight independent directors, officially taking Charge on March 4, 2021.
The operations of United Airways BD Ltd came to a halt on March 5, 2016, due to what the previous Board of Directors cited as trivial reasons. Consequently, the company was categorized as Z-category effective September 5, 2016. The failure of the last Board to initiate steps to revive operations led to the company being placed on the Over-The-Counter (OTC) platform.
In response to the company’s failure to comply with regulatory requirements, the Bangladesh Securities and Exchange Commission (BSEC) took action by suspending the previous Board of Directors and appointing a new board comprising eight independent directors. Mr. Kazi Wahid ul Alam was appointed the new Chairman, and the new Board assumed responsibility on March 4, 2021. Subsequently, in its 6th meeting on May 5, 2021, the Board replaced the previous Managing Director, Mr. Tasbirul Ahmed Chowdhury, with Mr. ATM Nazrul Islam as the current Managing Director (In Charge).
Under the leadership of the new Board of Directors, several challenging tasks were undertaken, including the successful completion of technical assessments of aircraft and stores and the preparation and auditing of accounts for the years 2018 to 2022 by a reputable audit firm. Despite Annual General Meetings (AGMs) being overdue since 2016, obtaining an order from the company bench of the Honorable High Court paved the way for conducting all pending AGMs, including the current year’s AGM, scheduled for January 3, 2023.
The previous management left the company with significant liabilities and needed more appropriate human resources. The former Managing Director also locked down the office and hindered accounts-related activities by sending legal notices. Overcoming these challenges was arduous, but the determination of the new Board of Directors ensured the completion of necessary compliance tasks.
The new Board has developed a relaunch plan and business strategy to revive the airline. Discussions with the Civil Aviation Authority of Bangladesh (CAAB) have been held to address the issue of outstanding dues, a major obstacle to revival. Applications seeking exemption from dues and necessary clearances to revive the airline have been submitted to the Ministry of Civil Aviation & Tourism and the Ministry of Finance through the BSEC. Meetings with the Honorable State Minister of Civil Aviation & Tourism and potential investors have also been conducted as part of the efforts to revive the airline. The government is considering the applications while management continues engaging with potential investors.
Controversies of United Airways BD Ltd
In June 2011, United Airways BD faced legal action from American carrier United Airlines in a London court, resulting in an order to repaint its fleet and change its name in the UK. United Airlines’ lawyers argued that United Airways had infringed upon its trademark and misled customers by associating its services with the American airline’s. The confusion stemmed from United Airways’ services to London Gatwick Airport, which could have confused passengers flying with United Airlines.
In November 2012, United Airways was scrutinized for allegedly inflating its first-quarter earnings for the fiscal year 2012–13. This led to an investigation by the Securities and Exchange Commission, which formed a panel to examine the irregularities. Before this, the Dhaka Stock Exchange had detected anomalies in United Airways’ financial statements and uncovered a manipulative trading scheme by an individual investor to inflate demand for the airline’s shares artificially. The carrier admitted to falsifying its first-quarter earnings report by omitting deferred tax from its financial statements.
In April 2014, the Civil Aviation Authority of Bangladesh (CAAB) threatened to suspend United Airways’ operations due to outstanding aeronautical and non-aeronautical fees totaling around BDT 770 million. CAAB also banned the sale or purchase of aircraft by United Airways until all current and exceptional charges were settled within the next year. The regulator criticized the airline for its history of late payments. Following an order from the High Court, CAAB temporarily renewed United Airways’ Air Operator Certificate (AOC).
United Airways BD: In-flight amenities
United Airways exclusively offered economy cabin seating across all its aircraft. On international flights, passengers had in-flight meals, while domestic flights offered juices and confectioneries. However, the airline’s aircraft needed to be equipped with in-flight entertainment systems. United Airways also published an in-flight magazine titled “Welcome Bangladesh” for the enjoyment and information of its passengers.
United Airways BD: Accidents and incidents
On August 13, 2012, during a domestic flight from Jessore to Dhaka, Flight 546, operated by an ATR 72–212 registered as S2-AFE, encountered a harrowing incident when the windshield of the first officer (co-pilot) blew out at an altitude of 9000 feet due to high pressure. Despite this alarming situation, the captain skillfully managed to land the plane safely at Shahjalal International Airport. Regrettably, the first officer sustained an eye injury as a result.
On July 20, 2014, Flight 501, operated by an ATR 72–212 registered as S2-AFN, faced a challenging situation during a domestic flight from Dhaka to Cox’s Bazar. After safely landing at Cox’s Bazar Airport, the nose gear of the aircraft collapsed, causing severe damage to the front fuselage. The airport had to be shut down for 22 hours until the aircraft could safely evacuate from the runway. Thankfully, there were no casualties among the 43 passengers and five crew onboard.
Another concerning incident occurred on August 11, 2014, when Flight 584, an MD-83 aircraft, was en route from Muscat, Oman, to Dhaka, Bangladesh. Carrying 148 passengers, the flight narrowly avoided a mid-air collision with a Saudi Arabian Airlines Boeing 747 cargo aircraft while flying over Kolkata airspace in India. This was due to an error made by an air traffic controller from Kolkata Air Traffic Control. The pilots were alerted by the Traffic Collision Avoidance System (TCAS) and took evasive action to prevent the collision.
On August 7, 2015, during an international flight from Dhaka to Muscat, Flight 585, operated by an MD-83 registered as S2-AEI, encountered an engine failure in the air. The aircraft was forced to make an emergency landing at Raipur Airport in Chhattisgarh, India. Fortunately, the emergency landing was successful, and all 173 passengers onboard escaped unharmed. However, despite repairs, the aircraft remained grounded at Raipur Airport and could not resume operations before United Airways ceased operations. As of March 2021, the aircraft remains parked at Raipur Airport.
United Airways BD: FAQs
Q: What were the main reasons behind United Airways BD’s closure in 2016?
A: United Airways faced various challenges leading to its closure, including frequent delays, cancellations, and inadequate service quality. Additionally, internal conflicts among the Board of directors and financial difficulties contributed to the decision to cease operations.
Q: How did United Airways BD expand its fleet and destinations over the years?
A: United Airways expanded its fleet with the addition of McDonnell Douglas MD-83 and Airbus A310-300 aircraft, enabling the launch of new routes to destinations like London, Dubai, Kuala Lumpur, and Kathmandu. The airline also introduced flights to Jeddah, Bangkok, and Muscat.
Q: What controversies did United Airways BD face during its operation?
A: The airline faced legal action from United Airlines in 2011, resulting in a court order to repaint its fleet and change its name in the UK. It also came under scrutiny for allegedly inflating its earnings and faced regulatory threats of suspension due to outstanding fees.
Q: What in-flight amenities did United Airways BD offer?
A: United Airways offered economy cabin seating on all flights, with in-flight meals provided on international routes and juices/confectioneries on domestic flights. However, the airline did not offer in-flight entertainment systems but provided an in-flight magazine called “Welcome Bangladesh”.
Q: Can you summarize some notable accidents and incidents involving United Airways BD?
A: United Airways experienced several incidents, including windshield blowouts, nose gear collapse, and engine failure. Flight 546 encountered a windshield blowout in 2012, and Flight 585 suffered an engine failure in 2015, resulting in successful emergency landings with no casualties.
Q: What steps did the new Board of Directors take to revive United Airways BD?
A: The new Board of Directors took initiatives such as conducting technical assessments, preparing and auditing financial accounts, and seeking regulatory clearances to revive the airline. They also engaged in discussions with government authorities and potential investors to address outstanding issues and develop a relaunch plan for the airline.
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