Govt to split CAAB

Plans two entities for regulatory and operational roles
By Star Business Report

The government has made a policy decision to split the Civil Aviation Authority of Bangladesh (CAAB) into separate entities for regulatory and operational functions.

The Ministry of Civil Aviation and Tourism informed CAAB on Wednesday about the decision through an official letter.

At present, CAAB performs a dual role. On one hand, it acts as a regulator, overseeing the country’s civil aviation safety and security. On the other hand, it functions as an operator, providing air navigation services and managing airports.

This dual responsibility creates a conflict of interest when CAAB, in its role as regulator, makes decisions concerning its own operational activities, the ministry noted.

The need to separate CAAB’s regulatory and operational entities was highlighted in audits conducted by the International Civil Aviation Organization (ICAO).

In addition, a probe committee led by the Senior Secretary of the Ministry of Home Affairs, formed to investigate the fire incident at the import cargo complex of Hazrat Shahjalal International Airport on October 18, 2025, also recommended separating CAAB’s operator and regulatory functions.

To address these concerns, the government has taken the policy decision.

Necessary laws and regulations will be enacted and amended soon to form a separate operator entity responsible for providing air navigation services and managing airports.

The move is expected to ensure compliance with international obligations and improve the quality of civil aviation-related services.

Aviation experts and private airlines welcomed the government’s decision.

Aviation expert ATM Nazrul Islam said, “We have long been demanding for splitting CAAB into two organisations – regulator and service provider – for providing better service.” 

“It’s really a conflict of interest that those who are regulatory authorities are also the operator. The practice all over the world is that the regulatory authority will be separated from operation,” he added. 

“Although it’s late, the government has finally taken a good decision,” Nazrul also said. 

He, however, said, “We will have to see how fast the government implements the decision.” 

Kamrul Islam, general manager of public relations at US-Bangla Airlines, also welcomed the move, saying this will enhance the service quality of the two new entities.