NovoAir to sell ATR-72 fleet, eyes international expansion
NovoAir, a Dhaka-based domestic airline, is selling its entire fleet of five ATR-72 aircraft to focus on acquiring new planes for international routes.
The airline primarily operates domestically, with one international route to Kolkata, India. In January, they sold two ATR-72s to Yeti Airlines of Nepal, citing a decline in domestic passengers.
“The sale of the old aircraft allows us to invest in new planes specifically suited for international routes. Sale advertisements have been placed for the five ATR aircraft,” a NovoAir source told The Business Standard on Thursday.
While the sale is underway, NovoAir confirms continued regular domestic operations with the existing ATRs until the arrival of their new fleet.
The five ATR72-500s, built between 1999 and 2002, are available for immediate purchase. However, NovoAir anticipates the sale process to take one to two years to complete.
“Advertisements for the two aircraft sold in January were placed in 2021. Because the sale process takes a long time, advertisements have been placed before the new aircraft are leased. This is because even if the aircraft are not in use, their maintenance costs are high,” the NovoAir official told TBS.
To facilitate the sale, NovoAir has partnered with Airstream International Group, a UK-based company specialising in aircraft remarketing and leasing, reports global aviation news portal ch-aviation.
“We are delighted to continue our longstanding relationship with NovoAir, having recently assisted them in selling two other ATR72-500s to Yeti Airlines,” said Airstream in a press release.
Airstream has a history of working with NovoAir, having previously facilitated the acquisition of their ATRs from Air New Zealand and BQB Líneas Aéreas and the sale of additional aircraft.
The ATR-72, a French-made turboprop aircraft, is widely used for short-haul flights and can accommodate up to 78 passengers. NovoAir currently utilises these aircraft for their domestic routes within the country.
NovoAir currently operates daily flights from Dhaka to Cox’s Bazar, Saidpur, Chattogram, Jashore, Sylhet, Rajshahi, and Kolkata.
With plans to expand its international routes, NovoAir is interested in acquiring three Airbus aircraft to service new international destinations such as Bangkok, Kuala Lumpur, and Singapore.
“We are currently experiencing a 30% decrease in domestic passengers. Having seven aircraft is more than we need for our current routes. Therefore, we have made the decision to sell two extra ones,” Mofizur Rahman, managing director of NovoAir told TBS earlier in January.
He also noted the company’s commitment to international expansion, highlighting ongoing efforts to acquire new aircraft.
The local airline industry is facing challenges due to several factors. Improved road and rail infrastructure is attracting a growing number of domestic travellers, leading to a decrease in demand for domestic flights.
Additionally, persistent inflation, exceeding 9% since March of this year, along with costlier fuel and higher government duties, has also increased ticket prices, prompting many to cut down on air travel, according to industry insiders.
Furthermore, the opening of the Padma Bridge in June 2022 has significantly reduced demand for flights on routes like Dhaka-Jashore and Dhaka-Barishal.
