CAAB and GACA Increase Flights to 84 Weekly

The Civil Aviation Authority of Bangladesh (CAAB) and the Saudi General Authority of Civil Aviation (GACA) have signed a new CAAB GACA aviation MoU to expand bilateral air connectivity. This agreement increases permitted weekly Bangladesh Saudi Arabia flights from 49 to 84, marking a 71% increase in passenger capacity. The deal also introduces fifth freedom traffic rights for cargo services, significantly altering the air corridor between the two nations.

The expanded bilateral arrangement directly addresses travel constraints for the estimated 4 million Bangladeshi expatriates living and working in Saudi Arabia. By increasing flight frequencies, the agreement aims to capture a portion of the 1.1 million passengers who currently travel between the two countries via indirect routes. Additionally, the expanded capacity is designed to mitigate seasonal bottlenecks, passenger pressure, and seat shortages during the critical Hajj and Umrah pilgrimage seasons.

Expanded Traffic Rights and Regional Connectivity

Under the newly signed Memorandum of Understanding (MoU), Saudi-designated airlines will receive expanded rights to operate flights to Chattogram and Sylhet, alongside the primary hub in Dhaka. This geographic expansion establishes direct connectivity with major Saudi cities, including Riyadh, Dammam, Madinah, and Jeddah.

According to the Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal Md Mostafa Mahmood Siddiq, the agreement also permits 21 weekly cargo flights between the two nations. This dedicated cargo capacity is expected to streamline logistics for Bangladeshi export industries, particularly for high-volume goods such as readymade garments, fresh vegetables, and fruits destined for the Saudi market.

Furthermore, the inclusion of fifth freedom traffic rights allows designated Bangladeshi carriers to operate cargo services through Saudi Arabia to specified European destinations, including Zaragoza, Spain and Frankfurt, Germany. In return, Saudi Arabian carriers receive corresponding rights to operate to two destinations in China.

Operational Flexibility and Commercial Arrangements

To support the increased flight volumes, the agreement introduces several regulatory mechanisms designed to optimize airline operations:

• Co-terminalisation: This provision allows designated airlines to serve multiple destinations within the partner country on a single flight. For example, a carrier could operate a single routing serving both Chattogram and Dhaka, enhancing load factors and operational efficiency.
• Wet-Lease Arrangements: Airlines from both nations are permitted to utilize leased aircraft, including wet-leases, to temporarily scale up capacity. This flexibility is highly critical during peak travel periods, such as the annual Hajj season.
• Code-Sharing: The MoU allows airlines to enter into code-sharing and other commercial arrangements with domestic carriers, partner-country airlines, or third-country operators, subject to regulatory approvals.

For national airlines such as Biman Bangladesh Airlines, Saudia, and Flynas, these provisions grant significant operational flexibility to manage fleet utilization and capture seasonal demand peaks. Conversely, third-country hub airlines that currently carry the 1.1 million indirect transit passengers may see a reduction in their market share as direct routing options expand.

Historical Precedents and Market Growth

This bilateral expansion builds upon a previous agreement signed in August 2023. That foundational MoU allowed Bangladeshi carriers to operate to any Saudi international airport, lifting a previous restriction that limited operations to just four airports. The 2023 agreement also established the previous passenger flight cap of 49 weekly flights.

The rapid progression from the 2023 limits to the new 84 weekly flights reflects the accelerating demand for travel between South Asia and the Middle East. This year, approximately 78,000 Bangladeshi pilgrims traveled to Saudi Arabia for the Hajj, highlighting the persistent seasonal pressure on the corridor.

Streamlining the South Asia-Middle East Air Corridor

This development indicates a structural shift in how bilateral air service agreements are leveraged to support both labor migration and export logistics. Historically, similar expansions in the Middle East-South Asia corridor have led to intense fare competition, ultimately benefiting budget-conscious migrant workers. By doubling down on direct connectivity, CAAB and GACA are positioning their home carriers to reclaim traffic that had previously leaked to intermediate hubs in the Gulf. The inclusion of fifth freedom cargo rights further suggests that aviation is being integrated directly into Bangladesh's national export strategy, bypassing traditional maritime and multi-stop air freight bottlenecks.

Implementation Timeline for Expanded Operations

The bilateral aviation arrangement is expected to be fully implemented by March 5, 2027. Between now and the implementation date, civil aviation authorities and designated airlines from both nations will coordinate slot allocations, airport handling arrangements, and code-sharing approvals. Airlines are also expected to finalize their wet-lease contracts to align with the upcoming peak travel seasons.

Easing the Pilgrimage and Expatriate Corridor

This agreement represents a major regulatory milestone that will lower travel barriers for millions of migrant workers and religious pilgrims. By fostering direct competition and expanding cargo capacity, the deal strengthens economic ties between Dhaka and Riyadh. For the aviation industry, it demonstrates how targeted regulatory liberalization can unlock latent demand in highly specialized travel markets.