For the first time in Bangladesh's aviation history, five of the world's largest airport service providers are engaged in an intense contest for a coveted foothold at Hazrat Shahjalal International Airport's (HSIA) Third Terminal, transforming what was once a protected domestic business into a high-stakes international competition.

From the United Kingdom, Switzerland, Türkiye, the United Arab Emirates and Singapore, global aviation giants are now lobbying, negotiating and positioning themselves for what could become one of the most lucrative airport service contracts in South Asia.

Yet as Bangladesh prepares to introduce competition in passenger ground handling for the first time, a parallel decision by the Civil Aviation Authority of Bangladesh (CAAB) to preserve Biman Bangladesh Airlines' exclusive control over cargo handling has triggered growing criticism from airlines, industry experts and aviation stakeholders.

The result is a policy paradox that many in the industry are struggling to understand: if competition is necessary to improve passenger services, why should cargo operations remain a monopoly?

A market finally opens

The opening of HSIA's Third Terminal represents far more than the launch of a new airport facility.

It marks the first serious challenge to Biman Bangladesh Airlines' decades-long dominance over ground handling operations, a business that generates between Tk 1,000 crore and Tk 1,200 crore annually and serves as one of the airline's most valuable non-ticket revenue streams.

For years, foreign airlines operating in Bangladesh have complained about the absence of competition in passenger, baggage and aircraft handling services. Industry stakeholders argued that introducing alternative service providers would improve operational efficiency, reduce turnaround times and elevate service quality to international standards.

After prolonged discussions, CAAB has now decided to appoint a second ground handling operator for passenger-related services at the Third Terminal.

That decision has opened the door to an unprecedented international contest.

Five global contenders

The race has attracted some of the most established names in global aviation services.

Leading the field is UK's Menzies Aviation, one of the world's largest airport service providers, operating at more than 300 airports across 65 countries.

Menzies' interest has received particular attention following Civil Aviation and Tourism Minister Afroza Khanam's recent visit to the company's operations at Heathrow Airport. While officials described the visit as an effort to observe international best practices, critics questioned whether engagement with a prospective bidder could create perceptions of unequal access.

Switzerland's Swissport has also formally expressed interest. Widely regarded as the world's largest aviation services company, Swissport operates at hundreds of airports and handles millions of passengers annually.

Türkiye's Çelebi Aviation Holding has entered the contest through active diplomatic engagement. Turkish Ambassador Ramis Şen held multiple meetings with the aviation minister and state minister, promoting Çelebi's experience across Europe, Asia and the Middle East.

Meanwhile, UAE-based dnata, owned by the Emirates Group, has sought support through diplomatic channels. UAE Ambassador Abdulla Ali Abdulla Alhmoudi recently raised the company's interest with Bangladeshi authorities.

The latest entrant is Singapore's SATS, a major Asian aviation services provider that recently met the aviation minister and formally expressed its desire to participate in Third Terminal operations.

Industry observers note that rarely has Bangladesh attracted simultaneous interest from so many globally recognised aviation operators.

Diplomacy takes flight

The contest has increasingly moved beyond commercial discussions into diplomatic territory.

Over the past several months, ambassadors from the UK, Switzerland, Türkiye and the UAE have personally raised the issue with Bangladesh's aviation leadership.

Such diplomatic engagement reflects the strategic importance of the contract.

Ground handling is no longer viewed merely as an airport support service. It is now considered a critical component of aviation infrastructure, directly affecting airline efficiency, passenger experience, cargo movement and airport reputation.

Several aviation analysts described the competition as a test case for Bangladesh's willingness to open strategic aviation services to international participation.

The Japanese gatekeepers

The selection process itself has become one of the most closely watched aspects of the project.

Under the operational framework being negotiated for the Third Terminal, the Japanese consortium comprising Japan Airport Terminal Company, Sumitomo Corporation, Nippon Koei and Narita International Airport Corporation is expected to prepare a shortlist of qualified international operators.

CAAB and the government will then make the final decision.

Officials said the evaluation process will focus on operational experience, technical capability, safety standards, equipment, manpower, financial strength and national security considerations.

A senior official involved in the process said Bangladesh would carefully assess whether a prospective operator meets international standards while also safeguarding national interests.

Industry stakeholders, however, insist that the final selection must be conducted through a transparent and competitive process.

"Merit, technology, operational capability and financial value should determine the winner—not political or diplomatic considerations," said former Biman board member Kazi Wahidul Alam.

Cargo monopoly survives

While passenger handling is opening to competition, cargo operations remain a different story.

CAAB has quietly abandoned its earlier position that the second handler could participate in both passenger and cargo operations.

Instead, Biman Bangladesh Airlines will retain exclusive control over cargo handling at the Third Terminal.

The decision effectively preserves one of the country's last major aviation monopolies.

Critics argue that the move undermines the broader objective of introducing competition and improving efficiency.

The controversy has become particularly sensitive following last year's major fire at HSIA's Cargo Village, which exposed weaknesses in cargo management and prompted recommendations for structural reforms.

Industry sources say a post-fire investigation recommended involving specialised international operators in ground handling and cargo management.

Those recommendations remain largely unimplemented.

A question of credibility

The cargo issue has become a litmus test for Bangladesh's aviation ambitions.

Industry experts argue that becoming a regional aviation hub requires competition, efficiency and world-class operational standards across the entire airport ecosystem, not just selected segments.

Former CAAB Chairman Air Vice Marshal (retd.) Muhammad Mafidur Rahman has warned that the Third Terminal's advanced automated systems require experienced operators capable of managing sophisticated equipment and international service standards.

Aviation entrepreneur K M Mozibul Hoque believed international expertise should play a larger role in airport services.

"Ownership may remain with the government, but operations should be entrusted to proven global operators," he said.

Novoair Managing Director and Airline Operators Association of Bangladesh Secretary General Mofizur Rahman also questioned whether retaining a monopoly aligns with international best practices.

"There are serious questions regarding capability and standards. Competition should not stop at passenger handling," he said.