Innovation in Domestic Air Cargo Business

Bangladesh

What are the Routes?

Coxs Bazaar to Jessore

Jessore to Dhaka

Dhaka to Chittagong

Dhaka to Coxs Baazar

Chittagong to Coxs
Baazar

Bangladesh lacks proper

Air Freighter routes in
the Domestic Sector.
These routes have huge
prospect with no other
airlines
company
serving these routes.

Export Market by Air Freight?

Monthly Export

Dried Fish
Live Fish
Fish Fillet
Monthly
Weekly

Eels
Crabs
Vegetables

Tons

500

1000 1500 2000

Source: http://www.ccie.gov.bd/index.php?
cmd=statistics&id=9

Local Market Demand

There are Three Major Mega Departmental Stores All
over Bangladesh:
Agora 30 Branches
Swapna- 40 Branches
Meena Baazar 24 Branches
Other Mega Departmental Stores with less than 10
Branches

Fresh Items in Tons

Agora
Swapna
Meena
Others

Prospect of Each Routes?

Coxs Bazaar to Jessore @TK. 1200
(US$ 15.8)
30 Tons of Shrimp Fry (Baby Shrimp) is
transported daily from Coxs to Jessore
ATR-72 can carry 6 tons. (approx. 1200
boxes) per trip.

Meet the Demand

Unmet
Demand
Our Airline

(Continuation)
Jessore to Dhaka @BDT 80 /Kg
(US$1.04)
There are huge range of goods that can be
transported:
Fresh Live Crabs, Eel, for the export
market
Fresh Fruits, Vegetables, Fishes without
preservatives to Dhaka.
Valuables like Secured Cash for Banks,
Gold etc.
Dhaka to Chittagong @ BDT 120 /KG
(US$1.56)
Fresh Beef, Fruits, Vegetables.
Couriers
Valuables Like Cash for Bank, Gold,
Electronics
Urgent Cargo for Factory, Machineries etc.

(Continuation)
Dhaka to Coxs Baazar @BDT
150/KG (US$1.95)
Supplies for 5/4/3-Star Hotels.
Valuables like Cash, Gold, Computers
Couriers

Chittagong to Coxs Baazar @

BDT30/KG (US$0.35)
Any Important Cargo
Valuables
Fresh Food Product

Gross Income Per Flight

100%
PayLo
Route Rate
ad
Sales
CXBJSR
1200 1200
$18,700
JSRDAC
80
6000
$6233
DACCTG
120
5000
$7792
CTGCXB
30
3000
$1168
DACCXB
150
3000
$5844
TOTAL
GROSS
$ 39,737
(Daily)
BDT 3,059,749
TOTAL

75%
PayLo
ad
Sales

45%
PayLo
ad
Sales

900

$14,025

540

$8415

4500

$4675

2700

$4674

3750

$5844

2250

$3506

2250

$876

1350

$525

750

$4383

450

$2629

$ 29,802
$ 17,881
Assumption 1 Flight
per day,

BDT 2,294,754

BDT1,376,837
25 Flights in a
Month [1 US$ =
77 BDT ]

Visualizing Daily Gross Sales

US
Dollar

Income from each Routes

45000

@ 100% Payload

40000

@75% Payload

35000

@45% Payload

30000
25000
20000
15000
10000
5000
0
CXB-JSR

JSR-DAC DAC-CTG CTG-CXB DAC-CXB

How to Market?
Its all about MARKETTING

Tea
mA
TEAM
D

Tea
mB
Tea
mC

How to get the Cargo?

Team
A

Team
B

Team
C

Team A

Team B

Team C

Targets the Crab, Eel,

Fish Exporters and
Processing Plants.
Pharmacuticals.
Fresh Fruits and
Vegetable
Distributors

Targets Local &

International Courier
Services, and Air
Freight Forwarders.
Airliners to deliver
excess baggage.
Foreign Aid
Organizations to
Transport their
equipments for their
CTG Hill Tract
Projects.

Targets Banks to
Deliver newly printed
Money to be
delivered to other
cities.
Move money in
between Khulna,
Dhaka and
Chittagong Division.

Management
other teams

to Monitor all the

Aircraft Specifications

ATR 72 200

Aircraft Specifications
ATR 72 200 Operational Cost
Fuel Usage (Gallons /
Hour )
Fuel Cost Per Hour
Fuel Cost Per Gallon

USD
230
1,334.0
0
5.80

Total Maintenance

744.00

Crew Misc

169.00

Total Variable Cost Per

Hour

2,247.0
0

Total Fixed Cost

696.73

Total Hourly Cost

2,943.7
3

Total Cost Per NM

13.35

Total Cost

3640.4

Route, Distances, Time

Distance=79
NM
Time= 20 min
Cost= $1054
Jessore

Dhaka
Distance=123
NM
Time= 28 min
Cost= $1642
Chittagong

Distance=259
NM
Time= 58 min
Cost= $3457

Distance=67
NM
Time= 15 min
Cost=$894
Coxs
Baazar

Route, Distances, Time

US
Dollar

Income from each Routes

45000

@ 100% Payload

40000

@75% Payload

35000

@45% Payload

30000

Route Expense

25000
20000
15000
10000
5000
0
CXB-JSR

JSR-DAC DAC-CTG CTG-CXB DAC-CXB

Fixed and Variable Cost

Items

Cost
(BDT)

Office Rent

400,000

Equipments

50,000

Cars

250,000

Staf

650,000

Utility

150,000

Other Bills

200,000

Food Expenses

100,000

Office
Maintenance

125,000

Insurance

200,000

Miscellaneous

350,000

Total Monthly

2,475,00

$30,937

Total Initial Investment

Items

Cost
(USD)

ATR 72-500

14,400,000

Equipments

300,000

Cars

80,000

Office Setup

250,000

Official
Paperwork

1,020,000

Other Expenses

250,000

Total Initial
Investment

16,300,00
0

In BDT

1,304,000,
000

Daily Expense VS Daily

Revenue
@100%

@75%

@45%

$ 39,737

$29,802

$17,881

Daily Operating
Cost

$ 7047

$ 7047

$ 7047

Daily Fixed and

Var.

$ 1031

$ 1031

$ 1031

Estimated Net
Income

$ 31659

$ 21724

$ 9803

$ 949,770

$ 651,720

$ 294,090

Daily Revenue

Estimated
Monthly

18000000
16000000
14000000
12000000

100%
75%
45%
Investment

10000000
8000000
6000000
4000000
2000000
0
1.0

2.0

3.0

4.0