United Airways (Dhaka) could have its operational licence suspended by the Civil Aviation Authority of Bangladesh (CAAB) over BDT77million (USD0.99million) in outstanding service charges.
The Daily Star reports that the CAAB has now renewed United's Air Services Licence for only three months - up to June 29 - instead of a usual one-year term and has also imposed a one-year moratorium on the airline buying or selling aircraft until it clears all current and outstanding debts.
"If the airline fails to pay the charges within the scheduled timeframe, we might stop their operation anytime,” CAAB Chairman Air Vice-Marshal Mahmud Hussain told the paper.
The regulator has also instructed United to submit a payment plan detailing how amounts dues by June next year will be paid off.
Officials also questioned why the airline had not paid its debts given that it made a net profit of BDT55.56million in 2012-13 and BDT27.75million in the first half of the current fiscal year.
United Airways operates a fleet of three ATR72s, four MD-83s, one A310-300 and one Dash 8-100 on flights throughout Bangladesh as well as to the UAE, Nepal, Thailand, India, Saudi Arabia, Oman and Malaysia.
