NovoAir Faces Fleet Expansion Challenges Amid Aircraft Shortages
NovoAir, the regional carrier based in Dhaka (VQ), is grappling with significant fleet expansion hurdles as a shortage of available aircraft and a market bias by lessors toward larger airlines continue to constrain its growth ambitions. Managing Director Mofizur Rahman candidly addressed these challenges in an interview with Dhaka’s Daily Star, stating, “We have not yet fulfilled the expectations I had as managing director. Our fleet size and the number of international destinations should have been larger by now. I take full responsibility for not meeting these goals.”
Currently, NovoAir operates a modest fleet of five ATR72-500s, serving key domestic destinations including Dhaka, Chittagong, Cox’s Bazar, Jessore, Rajshahi, Saidpur, and Sylhet. The carrier had originally planned to expand its fleet by leasing A321-200s to boost both its capacity and reach. However, due to an unavailability of the A321-200 type in the leasing market, NovoAir quickly revised its strategy, targeting A320-200s as an alternative. Yet, the airline continues to face challenges securing these aircraft for lease.
“The global shortage of aircraft has not helped our situation either,” Rahman explained. NovoAir also explored the possibility of leasing Boeing 737s to expand its fleet. However, a persistent global shortage of these aircraft, combined with lessors’ preferential treatment toward dealing with larger, more established airlines, has further hindered their efforts. “When an aircraft becomes available for lease, major airlines tend to grab it quickly, leaving lessors less willing to lease to smaller airlines like ours,” he added. In addition, local economic conditions, such as a shortage of U.S. currency, have raised concerns among lessors about NovoAir’s ability to meet monthly lease payments.
NovoAir has also considered wet leases as a stopgap measure, but discussions revealed that such arrangements are not commercially viable for the carrier. Lessors generally prefer wet leases that last no longer than six months, and stringent Bangladeshi aviation regulations make longer wet lease periods difficult to secure. Since May of last year, NovoAir has been actively seeking to lock in a suitable dry lease agreement, but prospects remain uncertain. Rahman now estimates it may take another year to source the ideal aircraft to meet the airline’s expansion plans.
In a bid to upgrade its existing fleet, NovoAir is also looking to modernize its current ATR72-500s by converting them to ATR72-600s. However, supply chain issues at ATR – Avions de Transport Régional – particularly concerning spare parts, have impacted fleet maintenance, with ch-aviation data revealing that two out of the five ATR jets are currently out-of-service.
Looking ahead, Rahman envisions a broader international expansion once the fleet challenges are resolved. He hopes to extend NovoAir’s operations beyond domestic routes, with plans to serve major international airports including Kuala Lumpur International, Bangkok Suvarnabhumi, Singapore Changi, Dubai International, Sharjah, and Muscat. Such a move would significantly enhance the airline’s network, enabling it to tap into lucrative international markets while increasing connectivity across Asia and the Middle East.
Despite these challenges, NovoAir remains committed to overcoming the obstacles imposed by the scarcity of aircraft and lessor preferences. Preliminary discussions with various lessors have shown some promise of locking in an aircraft deal within the first half of this year. With determination and strategic adjustments, NovoAir aims to grow its fleet, expand its route network, and fulfill its potential as a significant player in both domestic and international aviation markets.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com