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Report on United Airways (BD) Ltd.

Prepare for

MUHAMMAD ARIFUL GHANI

Submitted by

01. KAZI SAMI BIN EAMDAD (ID# 1120003030)

02. INZAMAM-UL-HAQUE (ID# 1120182030)

03. TARIQUL ISLAM (ID# 1120811030)

04. LABONI BARUA TITHI (ID# 1120036030)

05. KABIRUL HAQUE (ID# 1120170030)

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Submission date

1 August 2011

August 1, 2011

Muhammad Ariful Ghani

Faculty, School of Business

North South University

Subject: Submission of the Group Report.

Dear Sir,

We are very delighted to submit the final group report on “United Airways (BD) Ltd.” as

the course material of BUS 101. Our main incentive is to prepare this report according to

your guidelines in accordance with your instructions. We have tried our best to produce

our work as per your structures and hope we believe we have done an adequate job

considering our level of experience and expertise and are able to relate the fundamental

things with realistic applications.

We are extremely grateful for the opportunities that you gave us to express our innovative

ability and we earnestly hope that you will like the work that we have done. Furthermore,

we stand by to answer all queries regarding our work and pledge that our Group Report is

a unique production culminated by the amalgamation of our varied skills and had work.

Sincerely,

Kazi Sami Bin Eamdad

Imzamam-ul-Haque

Laboni Barua Tithi

Kabirul Haque

Md. Tariqul Islam

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Acknowledgement

At first, we thank our almighty Allah for helping us to move on the right direction that

helped us to complete this report. Preparation of this report received assistance, guidance

and took valuable time of many important and prestigious personalities. We would like to

express our appreciation to our honorable course –teacher Muhammad Ariful Ghani,

Faculty, North South University for providing us all the guidance and support that we

needed mostly during the time to prepare the report.

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Executive Summery

United Airways (BD) Ltd., the 4th private airlines in Bangladesh, was launched on 10th

July 2007. It is a public limited company comprised of over 500 shareholders mostly

from UK. The entrepreneur of this company is Capt. Tasbirul Ahmed Choudhury who is

an expatriate airline pilot. It was his contagious vision that was brought to reality by his

hard work and contributions from other investors.

The company operates both domestic and international operations with its fleet of two

DHC-8 and two MD-83 aircrafts. It is the first private Bangladesh based airlines to fly to

Europe.

The company faces intense competition from the other established airlines such as Biman

and GMG Airlines. It has fought the competition and reached such a stage where it has

established itself in the domestic market. The international market is yet to be conquered

by this company. Nevertheless, ever since its launch this company has never stopped

growing.

The company now owns its own catering service as well. It employs highly trained and

efficient employees. The vision of this company is to reach a total worth of

Tk.2000crores by 2015.

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Table Of Contents:

Topics Name Page No.

Letter of testimonial 3

Acknowledgement 4

Executive Summary 5

Introduction 7-8

Idea Generation 9

Initial Investment and Funding 10-11

SWOT Analysis 12

Employment, Market Analysis and Vision 13-14

Financial status 15

Management 16-17

Researcher’s Comments and Recommendations 18

Conclusion 19

References 19

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Introduction

Background:

United Airways (BD) Ltd, a public limited company by shares, is founded by an

expatriate airline pilot, Capt. Tasbirul Ahmed Choudhury along with a group of

professionals, business people, entrepreneurs united together in a shared vision to

develop a world class airline in Bangladesh.

The Company has been formed with the intention of operating, managing and eventually

owning several commercial aircrafts that will utilize Bangladesh as its base of operations.

United Airways (BD) Limited obtained Air Transport Operating License from Civil

Aviation Authority Bangladesh to operate its passenger services in the International &

domestic sectors.

United Airways (BD) Limited IATA two letter code is 4H. United Airways (BD) Limited

is member of MITA and ICH. Besides its Head Office at UTTARA and other sales

offices at Dhaka, the Company have airport offices at HSJ International Airport, Sylhet

International Airport, Chittagong Shah Amanat International Airport and Jessor Airport.

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History:

The company formed in early 2005 is issued with Air Transport Operating License from

Civil Aviation Authority of Bangladesh to Operate Passenger and Cargo service in the

international and domestic sectors. The Airline has been Operating Schedule Passengers'

Flights in the Domestic Routes of Bangladesh since 10th

July 2007.

Mission:

United Airways (BD) Limited aim to develop the airline in a way which every

Bangladeshi can feel proud of being associated with. Investor is not only a part of this

profitable venture but is also a part of investing for the economic growth of Bangladesh

itself. The development of this new airline will help move Bangladesh further into 21st

century.

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Main Body

Idea Generation:

“Every salesman wants to be the owner of the shop”, as stated by Mr. Tasbir and it was

no different in comparison to his case. From the very beginning, a dream to open up his

own Airlines stood as his only aim. During his career as a pilot, he decided to stick to his

aim and worked on it. Necessary steps to proceed with it, starting from research to

analytical studies, were all he did to ensure a flawless business. As an Aviation

Management degree holder, he pretty much had an idea on which fields to hit on.

Research on Aviation Business and consulting with other consultants helped him shape

his business and move forward with the market. On top of that, proper analysis of

Bangladesh Laws and Regulations and sufficient market research played an important

role as well. His interest and research in Engineering Infrastructure Development,

contributed to the decision on the type of fleet that has to be used to maximize efficiency

and hence at the end of the day putting up a competitive Airlines in the Aviation Industry.

After all the hard work, in 2005 United Airways founded by Captain Tasbir was issued

the Air Transport Operating License (ATOL) no.35 by the Civil Aviation Authority of

Bangladesh to operate passenger and cargo service in the international and domestic

sectors. But the company started its first operation on 10th July 2007.

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Initial Investment and Funding:

United Airways had over 500 shareholders and out of them, almost 95% were NRBs

residing in the United Kingdom. According to the laws and regulations set by the

company, each of the shareholders was allowed to invest a minimum of 10lac BDT and a

maximum of 5Crore BDT into the business. On the other hand, the words and the

convincing power of Captain Tasbir lead to an increase in the number of shareholders in

United Airlines in a very short period of time. The initial investments were used to set up

the business, the major part went into buying the two DHC-8 aircrafts which costs around

Tk. 30crores each.

The business has currently seven airplanes: Two Dash-8, Two ATR-72, Two MD-83,

One Airbus-310.

Dash-8

MD-83

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Airbus-310

ATR-72

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SWOT ANALYSIS:

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Employment, Market Analysis and

Vision

Employment:

United Airways employs around 700 employees from home and abroad ensuring Career

Planning and World Class Training. These employees are assigned in particular

departments to work in, which include: Operation; Engineering; Accounts and Finance;

Marketing and Sales; Human Resources and Ground Staff. The working environment is

more or less very friendly and according to the employees there is a good amount of job

satisfaction. All the employees are subjected to at least the living wage.

Market Analysis:

Bangladesh’s air traffic grew 7.3 per cent on 2008, making it one of the fastest –

growing aviation markets in the region, but decades of poor performance by the other

airlines has enabled foreign carriers to snatch almost 80 per cent of the market.

Government decision proves that it wants a level playing field in the aviation industry.

United Airways BD Ltd will soon procure Boeing 767-300ER to fly to London and other

Gulf destinations. UK and Gulf is the most important market for Bangladeshi airlines as

one in two people who fly abroad goes to the six Gulf countries and UK, which employ

more than 70 percent of the county’s over five million migrant workers. (United Airlines

BD. Ltd., available at: www.uabdl.com )

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The above stats clearly define Bangladesh’s aviation industry as an open market. As a

result United Airlines is likely to expand further and might even be able to contribute in

earning foreign currency.

Vision:

United Airways has been formed with the intention of operating, managing and

eventually owning several commercial aircrafts that will utilize Bangladesh as its base of

operation. Its vision is to play an important role in Dhaka Stock Exchange as a Public

Ltd. Company which will be worth 2000Crores BDT by 2015.

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Financial Status:

We collect quarterly financial report of this company. The report this company is given

below:

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Management:

Since early June 2006 United Airways has started recruiting experienced professionals

from various institutions as well as credible airlines. We believe that the members of the

management team is strategic thinkers and able to see the big picture, have diverse

experience, demonstrate leadership attributes, combine business insight with technical

savvy, and also committed to continuous learning. They are also have a common vision

of the future, be good team players who are committed to creating superior value for all

stakeholders – customers, employees, investors and society as a whole – by getting the

best from their people and leading continuous innovation.

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Researcher’s Comments and

Recommendations

United Airways (BD) Ltd. in the context of Bangladesh seems to be in a very satisfactory

position in the aviation industry. It has climbed up significantly in just 3 years. It is now

in such a situation that it can provide heavy competition to other older airlines. On the

other hand, we personally think that lack of advertisement is having some effect on the

annual turnover. It is being able to hold on to regular passengers, but is not being able to

attract new customers due to lack of publicity. There are a lot of potential customers in

the market who do not even know the name of the company. We think that the

management should look into this matter. After the interview of the entrepreneur we got

the vibe that most of the responsibilities rest upon him, this is a major crisis. The

responsibilities should have more divisions.

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Conclusion

Overall the MD, management and employees are doing a handsome job in running the

company. Its branches have stretched quite far. We hope that this trend will continue and

United Airways (BD) Ltd. will have a much better future ahead.

References

The Founder Managing Director and Chairman was personally interviewed.

Captain Tasbirul Ahmed Choudhury, M.D, United Airways (BD) Ltd.

Mr. Farhad Alam,Consultant, United Airways (BD) Ltd. and Capt. Md. Manzurul

Haque, United Airways (BD) Ltd. also interviwed.

www.uabdl.com