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Why Airlines Continue Ordering More Aircraft Despite Excess Capacity In January, Alaska Airlines made headlines with its largest-ever aircraft order, committing to purchase 110 jets from Boeing. This includes 105 Boeing 737-10 narrowbodies and five Boeing 787 widebodies, bringing Alaska’s total Boeing 737-10 order book to 245 aircraft, with options for an additional 35. While airlines often attribute such large purchases to sustained growth and strategic planning, Alaska Airlines highlighted a more pressing concern: securing critical delivery slots amid a market where waiting times for new aircraft now extend beyond a decade. Production Backlogs and Supply Chain Challenges The urgency behind these orders stems from unprecedented production backlogs. The International Air Transport Association (IATA) reports that Boeing and Airbus collectively face a backlog of approximately 17,000 aircraft—equivalent to nearly 60% of the current global fleet, a significant increase from the historical average of 30 to 40%. At current production rates, it could take up to 12 years to clear this queue, assuming no further disruptions. Delivery shortfalls have already reached at least 5,300 aircraft as of December, underscoring the strategic necessity for airlines to place early orders to modernize or expand their fleets. This supply-demand imbalance is largely driven by persistent supply chain constraints, with engine shortages posing a particularly acute challenge. United Airlines CEO Scott Kirby has publicly criticized manufacturers for their reliance on single engine suppliers, a vulnerability that contributed to United’s cancellation of its Airbus A350 order. Similarly, Qantas has experienced delays in receiving its A350-1000s due to comparable supply chain issues. Even as Boeing and Airbus increase airframe production, many completed jets remain grounded, awaiting engine deliveries. The situation is further exacerbated by shortages of skilled labor and the overall fragility of the aerospace supply chain, which continues to be vulnerable amid ongoing economic uncertainties. IATA projects that these constraints are unlikely to ease before 2031 to 2034, compelling airlines to plan and place orders years in advance to secure future capacity. Industry Responses and Strategic Adjustments Despite these challenges, some manufacturers are successfully increasing output. Embraer, for instance, is ramping up deliveries with a target of producing 330 aircraft annually by the end of the decade. Meanwhile, low-cost carriers are adapting their strategies to address excess capacity and evolving market conditions. Spirit Airlines, having struggled with oversized aircraft, is now focusing on smaller planes to access a broader range of markets. Allegiant’s acquisition of Sun Country and its cautious approach to capacity growth further illustrate the industry’s efforts to navigate these complexities. In this environment, airlines are compelled to place large aircraft orders well in advance—not solely to support growth but to ensure access to the planes they will require when delivery slots become available. This dynamic creates a paradox: despite excess capacity in the market, the risk of missing out on future deliveries drives airlines to continue ordering more aircraft.

Walsh Criticizes Engine Manufacturers in Final IATA AGM Address Sharp Rebuke of Engine OEMs In his final address as director general of the International Air Transport Association (IATA), Willie Walsh delivered a forceful critique of engine manufacturers, accusing them of exploiting airlines amid persistent supply-chain disruptions and engine reliability problems. Speaking at the IATA Annual General Meeting in Rio de Janeiro on 7 June, Walsh condemned the original equipment manufacturers (OEMs) for “gouging” the industry and profiting at the expense of carriers struggling with delays and operational challenges. “My message to engine OEMs is simple – stop gouging us and get back to making great engines that work and that last,” Walsh declared. He underscored that allowing these issues to continue into the next decade is “totally unacceptable to the customers.” Highlighting the financial strain imposed on airlines, Walsh remarked that engine manufacturers are “doing extremely well while inflicting significant financial pain on the industry.” He also revealed that his choice of the word “gouging” was a moderated version of his original, more severe criticism. Walsh urged engine makers to refocus on customer needs and deliver reliable products, recalling a time when manufacturers maintained higher standards. “They used to do that. We need to get back to what was a good performance by engine manufacturers. I object to them making a poor product and making money – if airlines did that, they’d go out of business,” he stated emphatically. Industry Impact and Broader Concerns The timing of Walsh’s remarks coincides with widespread recognition that engine supply constraints are a primary bottleneck to industry growth. United Airlines CEO Scott Kirby echoed these concerns, expressing skepticism that the situation will improve within the next five years. While General Electric and Pratt & Whitney are reportedly collaborating with United and other carriers to resolve engine issues, Kirby singled out Rolls-Royce for ongoing supply chain difficulties, noting that the company remains in his “dog house.” Walsh also acknowledged some progress in addressing airframe delivery delays but emphasized that “the pinch point continues to be the supply of new engines.” This shortage is contributing to rising fuel expenses, maintenance costs, and leasing fees for airlines, compounding financial pressures across the sector. The pointed nature of Walsh’s critique may have significant repercussions for engine manufacturers. His public denunciation risks straining relationships between OEMs and airlines, potentially intensifying scrutiny over pricing strategies and supply chain transparency. In response, airlines might explore alternative suppliers or negotiate more favorable contract terms, while competing engine makers could leverage the situation to promote their own reliability and quality commitments. Additionally, regulatory bodies may be prompted to examine pricing practices and supply chain operations more closely. Transition at IATA Leadership Walsh’s address marked his final appearance as IATA director general before departing to lead IndiGo, the Indian low-cost carrier. His successor has not yet been announced, though Luis Gallego, CEO of International Airlines Group (IAG) and chair of IATA, indicated that a recommendation to the board is expected before the end of June.

IATA Warns Aircraft Delivery Delays Deepen Airline Industry Challenges The International Air Transport Association (IATA) has issued a stark warning regarding the escalating delays in aircraft deliveries, highlighting a backlog exceeding 18,000 undelivered planes—representing more than half of the world’s active commercial fleet. This significant shortfall is severely constraining the aviation sector’s capacity to reduce operational costs, lower emissions, and expand its overall capacity. Delivery Backlog and Rising Costs At IATA’s annual general meeting held in Rio de Janeiro on 7 June, chief economist Marie Owens Thomsen emphasized the gravity of the situation. She revealed that the backlog of undelivered aircraft surpasses 18,000 units, a figure that exceeds half of the current active fleet. Owens Thomsen explained that the failure to receive these aircraft compromises the efficiency of the entire system, leading to increased operational costs across the board. According to IATA’s June 2026 Global Outlook for Air Transport, aircraft deliveries this year are projected to reach approximately 1,794 units, a figure still below the 1,816 deliveries recorded in 2018 prior to the pandemic’s disruption of manufacturer supply chains. While forecasts anticipate a recovery to 2,357 aircraft in 2027, Owens Thomsen cautioned that these projections may be overly optimistic, as they largely represent a deferral of deliveries rather than an actual increase. The delivery shortfall, when compared to pre-pandemic trends, amounts to roughly 5,600 aircraft. In response, airlines have sought to mitigate the impact by maximizing fleet utilization, postponing the retirement of older jets, and increasing passenger loads per flight. These strategies have effectively absorbed a shortage of about 3,170 aircraft, according to IATA. However, this has led to an aging global fleet, with the average aircraft age rising to over 15 years from 13.7 years before the pandemic. The older fleet necessitates higher maintenance expenditures and results in less fuel-efficient operations, exacerbating cost pressures amid soaring fuel prices driven by geopolitical tensions, including the February closure of the Strait of Hormuz. Manufacturer Delays and Industry Strain Delays from major aircraft manufacturers such as Boeing and Airbus are further intensifying the industry’s challenges. Airlines like LATAM have publicly expressed frustration over the failure to receive Boeing aircraft as scheduled. Meanwhile, Airbus has informed customers of additional postponements affecting its A350 and A320neo models, with delivery timelines now extended by several months. These manufacturing setbacks coincide with a broader context of fuel price shocks and persistent supply chain disruptions originating from the COVID-19 pandemic. The combination of an aging fleet and delayed deliveries is undermining both operational efficiency and the financial stability of airlines worldwide. Impact on Emissions and Sustainability Goals The report also highlights a concerning stagnation in the industry’s progress toward improved fuel efficiency. After decades of steady decline, fuel consumption per available tonne-kilometre has plateaued since 2024. Owens Thomsen underscored the challenge, stating that the lack of adequate support from aircraft manufacturers is impeding efforts to decarbonize the aviation sector. With lead times for new aircraft now extending up to seven years, IATA warns that the ongoing delivery crisis is fundamentally reshaping fleet planning strategies. This disruption threatens the industry’s ability to meet both its growth ambitions and sustainability targets in the coming years.

Etihad Orders Widebody Planes as UAE Plans to Expand Global Connectivity Etihad Airways is advancing its global recovery strategy with a substantial order for widebody aircraft, aiming to restore and exceed its pre-conflict flight capacity by June 15, 2026. The Abu Dhabi-based carrier, a prominent player in Middle Eastern aviation, is leveraging this fleet expansion to enhance international connectivity and provide more seamless travel options for passengers worldwide. Strategic Fleet Expansion Amid Regional Challenges Antonoaldo Neves, CEO of Etihad Aviation Group, announced the airline’s ambitious acquisition of widebody planes in double digits, though specific numbers have not been disclosed. This strategic investment is designed to meet growing passenger demand and capitalize on the global travel rebound following recent regional disruptions. The expansion occurs amid challenges such as fluctuating fuel prices and operational impacts stemming from geopolitical tensions, including the ongoing U.S.-Israeli conflict. Return to Pre-War Capacity and Network Optimization Following temporary flight reductions in March due to regional instability, Etihad projects an 8% increase in flights compared to the previous year by mid-2026. This milestone reflects a robust recovery and the airline’s confidence in sustained passenger demand. The restoration of capacity will facilitate smoother connections to key destinations across Europe, Asia, and North America, underscoring a strategic approach to optimizing its global network. Impact on Global Travel and Tourism The enlargement of Etihad’s fleet will directly benefit international travelers by increasing seat availability, offering more frequent services, and introducing new routing options. These developments enhance Abu Dhabi’s role as a global transit hub. For passengers traveling from India, Europe, and North America, the expanded network promises shorter layovers, greater itinerary flexibility, and improved access to destinations reliant on efficient Middle Eastern connections. This initiative aligns with broader industry trends emphasizing recovery and growth in global connectivity. Economic Considerations and Operational Efficiency Neves emphasized that one of the airline’s primary operational costs arises from operating empty aircraft. By expanding its fleet, Etihad aims to maximize occupancy rates and reduce inefficiencies, balancing capacity investment with prudent cost management amid a volatile fuel market. For travelers, this approach translates into more reliable and predictable service without compromising comfort or safety. Enhancing Abu Dhabi as a Global Travel Hub The investment in widebody aircraft further solidifies Abu Dhabi’s position as a key transit point for international travelers. Etihad’s strategy facilitates more efficient and comfortable connections to long-haul destinations, reinforcing the UAE’s standing within global aviation networks and offering a seamless gateway to Europe, the Americas, and Asia. Passenger Experience and Travel Comfort Widebody aircraft provide passengers with increased space, comfort, and amenities on long-haul flights. Etihad’s investment ensures consistent service standards, upgraded cabins, and enhanced onboard experiences for travelers journeying from regional hubs to distant destinations. Frequent flyers can anticipate smoother journeys, reduced congestion, and an overall elevated travel experience. As Etihad progresses with its fleet expansion, the airline is positioned to play a pivotal role in the resurgence of global air travel, further establishing Abu Dhabi as a premier international aviation hub.

ITA Airways Considers Legal Action Against Pratt & Whitney Over Engine Troubles ITA Airways is contemplating legal proceedings against American engine manufacturer Pratt & Whitney amid persistent issues with geared turbofan (GTF) engines that have disrupted operations across the Italian carrier’s Airbus A320neo-family fleet. The airline is expected to reach a decision by late July or early August 2026 on whether to initiate a lawsuit, as ongoing engine problems continue to significantly impact aircraft availability and operational efficiency. Persistent Engine Defects and Operational Impact The potential legal action arises from prolonged difficulties associated with Pratt & Whitney’s PW1100G GTF engines, which power a portion of the Airbus A320neo family. Since 2023, airlines globally have encountered extensive inspection and repair delays following Pratt & Whitney’s identification of a powder-metal manufacturing defect affecting certain engine components. This defect has necessitated accelerated inspections and additional maintenance visits, thereby reducing the number of serviceable aircraft for carriers dependent on these engines. ITA Airways is particularly vulnerable due to its next-generation narrowbody fleet composition, which includes several Airbus aircraft equipped with Pratt & Whitney engines. The airline’s Airbus A321neo operates with the PW1100G-JM engine, while the broader A320neo family is powered by either the PW1100G-JM or the CFM International LEAP-1A. Currently, nearly 20 percent of ITA Airways’ 80-aircraft fleet remains grounded due to engine-related complications, exerting immediate operational pressure. To mitigate disruptions, the airline has resorted to measures such as aircraft swaps and schedule adjustments to sustain service levels. Regulatory Pressures and Industry-Wide Challenges Compounding the situation are recent regulatory developments. The U.S. Federal Aviation Administration (FAA) has mandated sensor replacements on PW4000-94 engines, intensifying the urgency for Pratt & Whitney to resolve technical issues promptly. This regulatory intervention carries potential financial and operational consequences for ITA Airways, contingent on the manufacturer’s responsiveness and effectiveness in addressing the defects. ITA Airways is not isolated in confronting these challenges. Other carriers have adopted various strategies to manage engine-related disruptions. For instance, Swiss International Air Lines recently opted to retire two A220-100 aircraft as a response to similar engine reliability concerns. Such actions underscore the widespread impact of Pratt & Whitney’s engine issues across the aviation sector. Market observers have responded with increased scrutiny of Pratt & Whitney’s product reliability, prompting affected airlines to reassess their operational strategies. As ITA Airways deliberates its legal options, the outcome may set a precedent influencing how other carriers address ongoing engine difficulties and shape future dynamics between airlines and engine manufacturers.

Joramco Academy Launches Applications for Aircraft Maintenance Program Amid Industry Challenges Joramco Academy, the educational arm of the Amman-based aircraft maintenance, repair, and overhaul (MRO) provider Joramco—part of Dubai Aerospace Enterprise (DAE)—has opened applications for its Aircraft Maintenance program for the 2026 academic year. The four-year course, beginning in October, offers a hybrid curriculum that integrates academic instruction with practical, hands-on training. Program Structure and Industry Relevance The program is structured to provide students, both domestic and international, with two years of theoretical study followed by two years of practical experience at Joramco’s state-of-the-art facilities. This combination aims to equip graduates with the technical expertise and confidence necessary to succeed in the rapidly evolving aviation maintenance sector. By immersing students in a live maintenance environment, the academy ensures exposure to real-world industry practices and challenges. Designed to meet the growing global demand for skilled aircraft maintenance professionals, the curriculum culminates in the awarding of internationally recognized EASA and CARC licenses. These certifications significantly enhance graduates’ employability in the global aviation market. Furthermore, Joramco Academy graduates receive priority consideration for employment within Joramco, providing a direct pathway into the industry. Industry Challenges and Competitive Landscape The launch of this program coincides with notable challenges within the MRO sector. A critical shortage of narrowbody landing gears, particularly for newer aircraft models such as the Airbus A320neo and Boeing 737 MAX, threatens to constrain the academy’s capacity to deliver comprehensive maintenance training. This scarcity reflects broader supply chain disruptions affecting the industry and may limit the scope of practical experience available to students. In addition, the competitive environment among MRO providers is intensifying. Companies are expanding their training programs and service capabilities to meet market demands. For instance, StandardAero’s recent acquisition of Unified Turbines exemplifies strategic efforts to broaden repair services and capture greater market share. Such developments underscore the necessity for continuous innovation and adaptability among training institutions like Joramco Academy. Laurence Beraldo, Head of Joramco Academy, highlighted the institution’s dedication to preparing students for these shifting industry dynamics. “At Joramco Academy, we are building the next generation of aviation professionals who will set new standards for safety, precision, and innovation. Our program bridges the gap between classroom knowledge and practical expertise, ensuring our graduates are ready to thrive in an industry that is constantly evolving,” Beraldo stated. Enrollment for the 2026 cohort is currently open. Prospective applicants can access further information and submit applications via the Joramco Academy website.

Georgia Advances In-Flight Internet and Airline Digital Innovation In the United States, the landscape of in-flight internet technology is undergoing rapid transformation, with several states emerging as leaders in this digital evolution. Georgia, alongside Texas, Illinois, New York, Washington, California, Florida, Colorado, Massachusetts, and Arizona, is at the forefront of integrating advanced connectivity solutions into the aviation sector. As passenger demand for fast and reliable Wi-Fi intensifies, airlines are making significant investments to enhance onboard internet services, setting new industry standards. The Current State of In-Flight Internet Technology In-flight internet systems, which operate through air-to-ground connections or satellite networks, have become increasingly common on domestic flights. Although the Federal Aviation Administration (FAA) does not provide data on internet speed or quality by state, patterns in airline operations and investments reveal where technological advancements are most prominent. States hosting major airline headquarters or substantial aviation infrastructure tend to experience earlier and more extensive adoption of onboard broadband services. While no official rankings exist, analysts infer leadership in digital innovation by examining airline market share and the geographic distribution of airline headquarters. The FAA’s Next Generation Air Transportation System (NextGen) initiative is modernizing air traffic management and communication systems, indirectly facilitating upgrades in airline technology, including in-flight internet capabilities. According to the U.S. Bureau of Transportation Statistics, carriers such as Delta, American, and Southwest dominate the market by available seat miles, and these airlines are leading the deployment of Wi-Fi across their fleets. Competitive Dynamics and Strategic Partnerships The competition to deliver high-speed in-flight internet has intensified, with airlines forming strategic partnerships with major satellite providers. American Airlines recently announced a collaboration with SpaceX’s Starlink, aiming to implement satellite-based Wi-Fi across much of its fleet by 2027. This development reflects a broader industry shift toward satellite connectivity, which promises enhanced speed and reliability for passengers. However, airlines are adopting varied approaches. United, Southwest, and Alaska Airlines have already integrated Starlink services, while Delta Air Lines, headquartered in Georgia, has chosen Amazon’s low Earth orbit (LEO) satellite network instead. This decision sparked public criticism from SpaceX CEO Elon Musk, who questioned the technical advantages of Amazon’s system. In response, Delta’s CEO defended the choice, emphasizing the potential for broader partnerships and unique technical benefits offered by Amazon’s service. These divergent strategies underscore a competitive and rapidly evolving market, as airlines carefully evaluate the strengths and limitations of different satellite providers to improve passenger connectivity. Future Outlook As Georgia solidifies its position among states advancing in-flight internet and airline digital innovation, the competitive environment continues to evolve. Airlines are making calculated decisions regarding technology partnerships, balancing technical performance, passenger expectations, and strategic market positioning. Although official state-by-state performance data remains unavailable, the influence of major airline hubs and ongoing investments indicate a future where high-speed, reliable in-flight internet becomes a standard feature for travelers throughout the United States.

China Expands Repair Network for C919 and C909 Jets Amid Supply Challenges Strengthening Maintenance Capabilities for Domestic Aircraft China is broadening the repair and maintenance network for its domestically developed airliners, notably the C919 and C909 series, to support critical components such as engines and landing gear. This development coincides with the Commercial Aircraft Corporation of China (Comac) increasing jet deliveries and operators expanding flight operations, creating a pressing need for enhanced support infrastructure across mainland China and Hong Kong. Industry experts emphasize that the expansion of maintenance, repair, and overhaul (MRO) providers is vital for the resilience of China’s aviation sector, particularly in the face of ongoing global supply chain disruptions. Jason Zheng, an analyst at Shanghai-based consultancy Airwefly, noted that a more extensive domestic support network improves the prospects for these indigenous aircraft to withstand external supply challenges as operational demands rise. Key Partnerships and Milestones A significant milestone was recently achieved by Hong Kong Aircraft Engineering Company Limited (HAECO), a leading global aircraft servicing firm under the Swire Group. HAECO completed its first overhaul of a C909 regional jet’s landing gear in Xiamen, Fujian province, marking an expansion of its service portfolio to better support regional jet operators both within China and internationally. The C909, with over 180 units currently in service, is the first Chinese aircraft to operate flights across Southeast and Central Asia and is utilized by foreign carriers including Indonesia’s TransNusa, Vietnam’s VietJet, and Lao Airlines. In July 2025, HAECO formalized agreements with Comac and multinational supplier Liebherr to provide repair and maintenance services for both the C909 and C919 models. This builds on an existing partnership between HAECO and Comac aimed at delivering comprehensive airframe, engine, and component support to Comac’s domestic and global customers. Industry Challenges and Competitive Dynamics The expansion of China’s MRO network occurs amid significant challenges facing the global aviation maintenance sector. According to a recent Oliver Wyman survey, the industry is experiencing a “super cycle” of increased spending driven by fleet growth and the need for heavy maintenance on aging aircraft such as the Boeing 737NG and Airbus A320. However, this surge in demand is accompanied by labor shortages, material constraints, and rising costs, which threaten to strain the existing supply chain. Compounding these challenges, the C919’s CFM Leap engine is approaching its tenth anniversary. While confidence remains high regarding its performance, experts have expressed concerns about a potential oversupply of spare engines and the necessity to expand maintenance capabilities, as discussed in a recent Aviation Week podcast. International competitors are also positioning themselves to capitalize on China’s evolving aviation market. Brazilian manufacturer Embraer, for instance, views its E2 jets as a complementary offering to China’s homegrown models, intensifying competition and underscoring the critical importance of a robust and resilient support network. As China’s aviation industry continues its rapid growth, the development of a comprehensive repair and maintenance infrastructure will be essential to maintaining the reliability and competitiveness of its indigenous aircraft amid persistent global supply chain and industry pressures.

Etihad Airways Expands Fleet with Widebody Aircraft Order Etihad Airways is advancing its fleet expansion with a substantial order of widebody aircraft, signaling the Abu Dhabi-based carrier’s confidence in a strong market recovery following recent regional conflicts. Speaking at a global airline summit in Brazil, CEO Antonoaldo Neves confirmed the airline is acquiring widebody planes “in the double digits,” though he refrained from disclosing exact numbers. This strategic investment reflects Etihad’s anticipation of increased demand and its commitment to growth amid evolving regional dynamics. Commitment to Growth Amid Regional Challenges The airline expects to operate approximately 8% more flights by mid-June compared to the previous year, underscoring robust growth and financial stability. Neves highlighted the company’s focus on meeting rising passenger demand and reinstating routes that were previously suspended in March due to escalating regional tensions and the Iran conflict, which had driven up fuel costs and necessitated operational adjustments. Contrary to cost-cutting measures such as flight reductions, Neves emphasized that Etihad’s priority is to avoid flying empty planes, stating, “The biggest cost we have is an empty plane. So the way I cut costs is I don’t have empty planes.” This approach illustrates the airline’s strategy to maintain capacity and leverage market opportunities rather than scaling back operations. Regional Competition and Market Positioning Etihad’s fleet expansion occurs amid intensifying competition within the Middle East aviation sector. Other prominent carriers, including Ethiopian Airlines and Scandinavian Airline System (SAS), are reportedly engaged in negotiations for significant aircraft orders, which may heighten competition both regionally and internationally. Industry analysts suggest that Etihad’s decision could prompt rival airlines to accelerate their growth initiatives or adopt new cost-efficiency measures in response. With the recent US-Israel-Iran ceasefire easing regional tensions, Etihad’s investment in new widebody aircraft positions the airline to capture a larger share of the recovering travel market and reinforces its determination to remain a leading player in the global aviation industry.

Aviation and Tourism Stakeholders Request Policy Support in Budget Calls for Strategic Policy Reforms and Investment As Bangladesh prepares to unveil its 2026-27 national budget, leaders from the aviation and tourism sectors are urging the government to prioritize comprehensive policy reforms, tax incentives, and infrastructure investments. Industry representatives emphasize that beyond increased funding, a coherent and strategic policy framework is essential to unlock the full economic potential of these sectors. This approach aligns with the government’s stated ambition to establish Bangladesh as a regional aviation hub and a globally competitive tourism destination by 2034. Aviation operators have highlighted the pressing need for tax relief on jet fuel, aircraft leasing, and airline operations to enhance competitiveness and reduce airfares. Mofizur Rahman, Secretary General of the Aviation Operators Association of Bangladesh (AOAB) and Managing Director of NOVOAIR, pointed to the significant burden imposed by rising jet fuel prices and associated taxes. He advocated for a rational and stable tax structure on aviation fuel, VAT exemptions on jet fuel, reduced taxes on aircraft leasing and maintenance, and the rationalization of aviation-related duties. According to Rahman, such measures would lower operating costs, stimulate passenger demand, and improve the competitiveness of Bangladeshi airlines. Infrastructure and Operational Efficiency Industry stakeholders also called for adequate budgetary allocation to support the operational launch of the Third Terminal at Hazrat Shahjalal International Airport. Aviation analyst ATM Nazrul Islam stressed the importance of not only constructing infrastructure but also ensuring its efficient operation through recruitment, staff training, and enhanced security systems. He underscored that skilled manpower and robust operational frameworks are critical to realizing the terminal’s full potential. Beyond terminal operations, the aviation sector is seeking increased investment in airport modernization, cargo logistics, navigation infrastructure, and digital aviation systems. These enhancements are viewed as vital to supporting Bangladesh’s regional aviation ambitions and addressing challenges common to the global aviation and tourism industries. For instance, tourism stakeholders in Hawaii have expressed concerns that reduced promotional budgets are undermining competitiveness against destinations like Mexico, which invest heavily in marketing. Similarly, Iceland’s tourism industry faces difficulties due to high interest rates, inflation, and operational costs, resulting in declining visitor satisfaction. Cambodia’s tourism sector, still recovering from the pandemic, has experienced a 72% drop in visitors to Angkor Wat compared to pre-COVID levels, prompting calls for visa reform, global marketing efforts, and improved airport connectivity. Meanwhile, rising aviation fuel costs, exacerbated by geopolitical tensions in Iran, have raised concerns among U.S. lawmakers about broader economic repercussions. Tourism Sector Priorities Tourism stakeholders in Bangladesh are urging the government to focus on the effective implementation of existing policies, particularly the long-awaited National Tourism Master Plan. They advocate for targeted investments in tourism clusters, eco-tourism, community-based tourism, and coastal development projects, including the Exclusive Tourist Zone at Sabrang in Cox’s Bazar. Mohammad Rafeuzzaman, President of the Tour Operators Association of Bangladesh (TOAB), called for tax exemptions on tourism-related equipment, vehicles, and hospitality infrastructure to encourage private sector investment. He also recommended incentive packages for inbound tourism and the introduction of an electronic visa system to attract more foreign visitors. As the budget announcement approaches, industry leaders regard it as a critical test of the government’s commitment to fulfilling its economic promises and ensuring that Bangladesh’s aviation and tourism sectors remain competitive amid a challenging global environment.