Will Novoair Finally Secure Leased Airbus A320s for International Expansion?
Key Points
- 1Novoair is hopeful of securing leased aircraft following a planned visit to Dublin around mid-January.
- 2The airline plans to launch six new international routes, including Bangkok, Dubai, and Singapore, using Airbus A320/A321 aircraft.
- 3CAAB's 15-year age restriction for leased passenger aircraft complicates acquisition efforts amid a global narrowbody aircraft shortage.
- 4The carrier has committed to investing $25 million to $30 million in expansion, shifting focus from domestic to international routes.
After three years of persistent effort, Novoair is finally hopeful. The private Bangladeshi airline seeks to secure several leased aircraft this year. Novoair Managing Director Mofizur Rahman confirmed the plan. He noted a team will visit Dublin, a major leasing hub, around January 15 or 16. This visit aims to finalize crucial leasing agreements. Novoair is currently stepping into its 14th year of operations. It launched its inaugural flight on January 9, 2013.
The Global Leasing Challenge
Novoair has struggled to expand its fleet since 2023. This is due to a global shortage of aircraft available for lease. Production delays at Airbus and Boeing exacerbate the problem. Furthermore, engine inspection issues have grounded over 400 A320 aircraft. This scarcity drives up lease rates significantly for narrowbody jets. Lease rates for new Airbus A320neo aircraft have hit their highest point since 2008.
Fleet and Route Strategy
The airline's original business plan focused on the Airbus A321 aircraft. However, the unavailability of this type forced a revision. Novoair is now aiming to add Airbus A320s to its fleet. These aircraft are essential for the planned international expansion. The carrier plans to operate flights on six new international routes. These destinations include Bangkok, Kuala Lumpur, and Singapore. Middle Eastern routes include Sharjah, Muscat, and Dubai. Novoair also explored the ACMI leasing model. ACMI stands for Aircraft, Crew, Maintenance, and Insurance. This model allows an airline to lease an aircraft with a full operating crew.
Novoair currently operates daily domestic flights from Dhaka. These routes serve Chattogram, Cox's Bazar, Sylhet, and Saidpur. Domestic passenger numbers have recently seen a decline. This is a key factor driving the shift toward international expansion.
Regulatory and Financial Hurdles
A major hurdle for the airline is regulatory in nature. The Civil Aviation Authority of Bangladesh (CAAB) imposes restrictions. It limits leased passenger aircraft to not more than 15 years in age. This restriction makes securing available aircraft more difficult. Many older, yet reliable, aircraft are excluded from the market. Age limitations severely restrict the trading of ageing aircraft globally. This is a common challenge for airlines in many countries.
Despite these challenges, Novoair remains committed to growth. Since its inception, the airline invested over $50 million in aircraft. An additional $10 million went into infrastructure and support equipment. Novoair plans to invest between $25 million and $30 million more. This investment will fund its expansion in the coming years.
Novoair's Managing Director stressed their core philosophy. “Our business philosophy prioritises on-time flight operations and passenger safety above all else,” Rahman stated. Stakeholders view the successful lease acquisition as a critical step. It will determine the timeline for the airline's international route expansion. For more commercial aviation news, visit flying.flights. The global IATA forecasts strong passenger growth. This makes securing capacity vital for carriers like Novoair. CAAB's directive on age restriction is a key regulatory document.
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