BANGLADESH

GMG Airlines, the largest private airline of the country, has announced suspension of its flight operations from Mar 30 for what it called 'strategic restructuring against rising fuel price and competitive global market'.

A media statement from the company said on Wednesday that the airlines will go off air starting Friday.

"As we transit to the new strategy, our operations will be temporarily suspended with effect from Mar 30, as we await the delivery of new-generation aircraft, clear legacy issues, execute the rightsizing and organise ourselves better to take up the future challenges," chief executive Sanjiv Kapoor said in the statement.

GMG Airlines is planning to adopt a new business strategy in the light of rising fuel prices and changing international competitive environment through a 360 degree restructuring of its strategy, organisation, fleet and business model, he elaborated.

"It (airline) will redesign its route network to focus on higher yield, higher growth domestic and regional routes using new-generation narrow body aircraft," Kapoor added.

GMG Airlines started operations on local routes in 1998 and introduced international flights in 2004. BEXIMCO bought a large number of company's shares in 2009.

Flight operations have been suspended on six international routes since January. The company, the first private airlines in the country, used Boeing-767 and MD-80 airplanes for its international flights.

Only three local flights have been in operation on three local routes using two Dash-8 aircraft.

"One of the hired Boeing-767 airplanes was returned and the other two are set to be returned to the manufacturers. Instead, the company will bring two narrow-body aircraft," GMG director (Marketing and Customer Experience) Asif Ahmed told .

"Besides, a decision has been taken to exclude three MD-80 aircraft from the GMG fleet. Of the three, one is owned by the company while the other two were hired. Besides, a Dash-8 model aircraft will be sent for maintenance," said Asif.

"Flight operations will resume after getting the narrow-body aircraft," he added.

The press release said during the period of suspension, all ticketed passengers will be given a full refund through the airlines' sales offices and employees will be paid compensation benefits in accordance with the labour law.