The Thai Airways is supposed to takeover the management of the second largest international airport of the country for a period of ten years as per an agreement signed on December 1 last year with the Civil Aviation Authority of Bangladesh (Caab), the owner and operator of the airport.

The Caab chairman, Air Commodore AKM Harun Chowdhury, however, said the airport's handover is under process and they are ready to give its charge to the Thai airline company anytime, but they are awaiting the nod of the ministry concerned to do so.

Meanwhile, the government sought more time from the Thai Airways to complete the handover process, sources in the Ministry of Civil Aviation and Tourism said, adding that execution of the contract between the government and the THAI was originally supposed to start in February this year.

According to the air travel business circle, protests from Biman employees, who feared job losses, and Bangladeshi politicians, have caused delay of such handover of the Shah Amanat airport several times.

"The four-party alliance government is reluctant to take a risk before the general election by handing over the airport to a foreign company despite its completion of all necessary formalities nine months back," a Caab official said.

Passing off a long time after inking of the deal, Thailand's national carrier was approaching to file a lawsuit against the Caab for its failure in handing over the management of the airport, but the latest talks between Bangladesh's foreign minister and his Thai counterpart Kantathi Supamongkhon at Dhaka saved the Caab from such lawsuit. The ministerial meeting between the sides reached the decision on handing over the airport on September 1, 2006.

Under the decision taken at the ministerial meeting, THAI will allow Biman to operate ground handling services, cargo and catering for its own aircraft and passengers at Shah Amanat International Airport, while it will operate ground handling and passenger services for other international airlines, especially those from the Middle East countries.

Under the original terms of reference in the 10-year agreement, THAI would have provided all the airport services to the airlines and passengers.

Had THAI taken over the charge to run the Shah Amanat airport, the estimated amount of its earning from fees would have reached US$9.06 million. The Thai airlines is learnt to have taken up a strategy to manage some of the regional airports as well as small and medium-sized airports in Nepal, Bhutan, Burma, India, the Philippines and Indonesia.

Meanwhile, the THAI proposed an increase in the number of flights between Bangkok and Dhaka from seven to 10 per week.

Another source said several airlines from the Middle East, China and even Malaysia are planning to operate through the airport in Chittagong.