Bangladesh's commercial aviation industry is gearing up for its largest-ever fleet expansion. Spurred by the massive capacity created by Dhaka airport's upcoming Third Terminal, four domestic airlines plan to increase their combined fleet by 78.4% by 2027.

According to airline officials, the combined fleet of the state-owned flag carrier and three private operators will grow from 51 to 91 aircraft by 2027, driven by the induction of 40 leased planes.

The simultaneous expansion by Biman Bangladesh Airlines, US-Bangla Airlines, Air Astra, and Novoair aims to capitalise on critical infrastructure upgrades at Hazrat Shahjalal International Airport (HSIA). While the airport's existing terminal was designed to handle 80 lakh passengers annually, it stretched to accommodate 1.27 crore travellers in 2025—up from 1.25 crore in 2024 and 1.17 crore in 2023.

The Third Terminal, which the government plans to inaugurate either on December 16 this year or in early 2027, will add annual capacity for 1.2 to 1.6 crore additional passengers and nearly 5 lakh tonnes of cargo.

Bridging the capacity gap

The aggressive expansion comes as local airlines push to claw back market share from foreign carriers, which currently control roughly 65% of Bangladesh's international passenger market despite 38 foreign airlines operating in the country.

Aviation analyst and former Biman board member Kazi Wahidul Alam noted that the International Air Transport Association (IATA) projects passenger traffic through Dhaka could nearly double to 2.5 crore within the next decade. "The biggest-ever fleet expansion is now a commercial necessity," Alam said.

To meet this demand, local operators are bringing in a mix of Boeing 787-9 Dreamliners, Boeing 777s, Boeing 737-8s, and ATR 72-600 turboprops. The network strategy targets routes across South Asia, Southeast Asia, the Middle East, and Europe.

State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat welcomed the growth, noting that increased aircraft operations will boost aviation sector revenues, enhance competition, and improve service quality.

Biman eyes 10 leased jets ahead of mega-purchase

National flag carrier Biman Bangladesh Airlines plans to lease 10 aircraft to expand its current fleet to 29 by 2027, representing a 52.6% increase. 

This short-term expansion relies on leased aircraft to bridge the gap until newly manufactured aircraft become available after 2030, keeping it separate from Biman's proposed $3.7 billion purchase of 14 Boeing aircraft scheduled for delivery between 2031 and 2035.

The state-owned carrier has already invited international proposals to dry lease three Boeing 787-9 Dreamliners for six years, targeting delivery by January 2027. To ensure transparency, the government has initiated the appointment of an international consultant, vetting around 40 applications to select a qualified firm to oversee the leasing process.

State Minister Millat said, "We want to ensure that the Biman leasing process is conducted with complete transparency. To that end, we have initiated the appointment of an international consultant". 

Biman currently serves 22 international destinations and is planning further expansion into East Asia, Europe and North America, its officials said. 

Private carriers accelerate regional and long-haul ambitions

US-Bangla Airlines, already the largest domestic carrier with 25 aircraft, is planning the largest private fleet acquisition in the country's history by adding 21 leased Boeing 737-8 aircraft – an 84% increase valued at $1.11 billion.

Partnering with Boeing for a formal announcement on July 29, US-Bangla aims to transform Dhaka, Chattogram, and Sylhet into regional hubs.

"US-Bangla intends to operate direct international flights from the two cities in the future, reducing passengers' reliance on transiting through Dhaka," Kamrul Islam, spokesperson of the carrier, said.

Initially, the carrier plans to launch new services to Jeddah, Madinah, Bahrain, Hong Kong, Colombo, Kathmandu and Johor Bahru, while Europe, Toronto and Sydney remain part of its longer-term network strategy.

Expanding into Europe is part of the airline's next phase of growth, Kamrul said, adding that US-Bangla aims to launch flights to Italy by 2028, followed by services to Toronto in Canada and Sydney in Australia by 2030.

Air Astra, which currently operates four ATR 72-600 turboprops, plans to expand its fleet to 10 aircraft, marking the highest growth rate in the local industry. 

Besides adding two more turboprops, the airline will enter wide-body operations by introducing four leased Boeing 777 aircraft starting in April 2027.

Air Astra officials said the airline is preparing to launch international flights, including services to Nepal, Kuala Lumpur, Bangkok and Singapore.

Imran Asif, chief executive officer of Air Astra, explained that the Third Terminal has fundamentally changed the industry's growth outlook.

"Previously, terminal and parking capacity limited fleet expansion. Now that capacity is available, local airlines must expand. Otherwise, foreign carriers will take advantage of the additional capacity and increase their market share," he said.

Meanwhile, Novoair is returning to growth mode after struggling for several years to secure leased aircraft. 

Managing Director Mofizur Rahman confirmed the airline plans to induct two leased aircraft by November or December this year, followed by a third six months later. Currently operating three aircraft, Novoair is evaluating Boeing and Airbus options to support an international rollout to Southeast Asia (Bangkok, Kuala Lumpur, Singapore) and the Middle East (Dubai, Sharjah, Muscat).

Global lessors show high confidence

Industry executives credit the massive expansion to Bangladesh's improved standing among global aircraft leasing companies. The domestic aviation sector's clean record of zero aircraft repossession cases, combined with stricter regulatory oversight and the implementation of the Cape Town Convention, has given international lessors the confidence to offer newer aircraft on highly competitive terms.

However, long-term infrastructure challenges remain. State Minister Millat cautioned that even with the Third Terminal, a single runway will eventually be insufficient to handle long-term passenger growth, meaning Bangladesh will ultimately require an entirely new, larger airport to sustain its aviation ambitions.