International Airline Alliance, Codeshare and Interline Agreements in Bangladesh

by Barrister Tahmidur Rahman | Sep 20, 2026

Trade, Competition & RegulationAirline partnerships built to fly9 min read

International Airline Alliance, Codeshare and Interline Agreements in Bangladesh

Codeshare, interline and alliance advice for Bangladeshi airlines, foreign carriers serving Bangladesh and aviation investors, covering CAAB and ministry approvals, traffic rights under air services agreements, commercial and revenue terms, competition law, passenger liability, data, safety audits, settlement and disputes between partner airlines.

Overview

Codeshare and airline partnership law for Bangladesh routes

Airline partnerships allow carriers to offer destinations and frequencies they could not serve alone. For Bangladeshi airlines, a codeshare or interline agreement can connect Dhaka, Chattogram and Sylhet with onward networks in the Gulf, Asia, Europe and North America, serving a large diaspora, migrant workers, students and growing business travel. For foreign airlines, partnerships with local carriers provide domestic feed, local knowledge and market presence. We advise airlines, aviation investors and service providers on structuring, negotiating, documenting and obtaining approval for these arrangements as part of our trade and regulatory practice in Bangladesh.

Every codeshare depends on traffic rights. International air services to and from Bangladesh are governed by bilateral air services agreements negotiated by the Ministry of Civil Aviation and Tourism, with the Civil Aviation Authority of Bangladesh acting as regulator under the Civil Aviation Act 2017. Many agreements contain specific codeshare clauses on whether third-country carriers may participate, whether both partners need underlying rights and how designation works. Schedules and marketing arrangements typically require filing with, or approval from, the authority. We review the relevant air services agreements and prepare the regulatory filings that a partnership requires.

The commercial architecture varies. Interline agreements, often based on industry standard forms, allow tickets and baggage to move across carriers on a single itinerary. A codeshare goes further, allowing one airline to market seats on flights operated by another under its own designator, through free-sale or block-space models. Joint ventures and alliance membership involve deeper cooperation on schedules, pricing and revenue sharing. Each level raises questions about prorate and settlement, distribution, customer service, safety oversight, brand use, data sharing and exit, and the documents must work together with the parties' existing agreements and alliance commitments.

Liability and passenger protection need careful drafting. Bangladesh became party to the Montreal Convention 1999, which took effect for the country in January 2023, and that framework governs carrier liability for death, injury, delay and baggage on international carriage, including where a contracting carrier and an actual carrier differ. Consumer complaints, refunds and disruption policies must be aligned between partners. Competition law matters too: the Competition Act 2012 applies to agreements that affect Bangladeshi markets, and foreign authorities may review cooperation on routes to their own countries. We address these issues before the partnership launches.

We act for Bangladeshi and foreign carriers, aviation investors, ground handlers and travel distribution businesses, often alongside counsel in the UK, the US, the UAE, Singapore, India and China. Our work includes drafting and negotiating partnership agreements, regulatory approvals, competition assessments, safety and audit provisions, data protection under the Personal Data Protection Act 2026, tax and foreign exchange issues on settlement, and claims. Where a partnership ends in dispute, our dispute resolution team handles negotiation, arbitration, court proceedings and enforcement against assets in Bangladesh, coordinating with foreign counsel where needed.

01 · What we handle

Core workstreams

  • Traffic rights and approvals
  • Codeshare agreement drafting
  • Interline and special prorate agreements
  • Alliances and joint ventures
02 · How it runs

Four clear stages

  1. 01Define the partnership
  2. 02Check rights and applicable law
  3. 03Negotiate and approve
  4. 04Operate, review and resolve
03 · Start here

Talk to a partner

Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

Airline partnership work we handle

Workstream 01Trade, Competition & Regulation

Traffic rights and approvals

  • Define the partnership
  • Check rights and applicable law
  • Negotiate and approve
  • Operate, review and resolve
Workstream 02Trade, Competition & Regulation

Codeshare agreement drafting

  • Define the partnership
  • Check rights and applicable law
  • Negotiate and approve
  • Operate, review and resolve
Workstream 03Trade, Competition & Regulation

Interline and special prorate agreements

  • Define the partnership
  • Check rights and applicable law
  • Negotiate and approve
  • Operate, review and resolve
Workstream 04Trade, Competition & Regulation

Alliances and joint ventures

  • Define the partnership
  • Check rights and applicable law
  • Negotiate and approve
  • Operate, review and resolve
Workstream 05Trade, Competition & Regulation

Competition and consumer compliance

  • Define the partnership
  • Check rights and applicable law
  • Negotiate and approve
  • Operate, review and resolve
Workstream 06Trade, Competition & Regulation

Liability, insurance and airline disputes

  • Define the partnership
  • Check rights and applicable law
  • Negotiate and approve
  • Operate, review and resolve
01

Traffic rights and approvals

We analyse the air services agreements between Bangladesh and the relevant countries, identify codeshare provisions, designation issues and capacity limits, and prepare applications and filings for the Civil Aviation Authority of Bangladesh and the ministry. Where foreign approval is also needed, we coordinate with counsel abroad so that both sides are ready on time, avoiding launch delays and lost bookings. We also monitor changes to bilateral arrangements that may affect existing partnerships.

02

Codeshare agreement drafting

We draft and negotiate codeshare agreements covering scope of routes, free-sale or block-space structures, inventory and reservations, pricing and fare filing, distribution, passenger service standards, irregular operations, baggage, safety audits, insurance, brand use, compliance with sanctions and anti-corruption rules, term and termination. We tailor industry templates to Bangladeshi regulatory and commercial conditions rather than adopting them unchanged, and we explain the practical effect of each clause to commercial teams.

03

Interline and special prorate agreements

We advise on interline traffic agreements, electronic ticketing and baggage arrangements, special prorate agreements, through check-in arrangements and settlement through industry clearing systems. We focus on revenue allocation, currency, payment timing, foreign exchange approvals for remitting settlement amounts from Bangladesh, and the handling of disrupted itineraries, refunds and claims between carriers, so that passengers receive seamless service and partners are paid correctly and promptly.

04

Alliances and joint ventures

For deeper cooperation between carriers, we advise on alliance membership requirements, metal-neutral joint ventures, revenue and cost sharing, governance committees, integration of loyalty programmes and exit provisions. We assess competition law exposure in Bangladesh and coordinate filings or analysis abroad, and we advise state-owned and private carriers on approvals, governance and procurement constraints that may affect their participation, including board and ministry approvals where these are needed.

05

Competition and consumer compliance

We assess airline cooperation and partnership proposals under the Competition Act 2012, advise on information exchange, joint pricing and capacity coordination, and design compliance safeguards and clean team procedures. We also review consumer-facing terms, disclosure of the operating carrier, refund and disruption policies, and complaint handling, so that the codeshare does not create consumer protection or reputational problems for either airline, and that sales staff and travel agents describe it accurately.

06

Liability, insurance and airline disputes

We allocate liability between marketing and operating carriers clearly, including under the Montreal Convention, and review aviation insurance, indemnity and recourse provisions. When incidents, safety findings, unpaid settlements or termination disputes arise, we advise on rights and remedies, represent airlines in negotiation, arbitration and court, and support claims involving passengers, ground handlers, lessors and other aviation counterparties in Bangladesh, aiming to resolve matters without disrupting operations.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Trade, Competition & Regulation matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

Meet the firm →
01

What regulatory approvals are needed to launch a codeshare on routes to and from Bangladesh?

The precise requirements depend on the relevant air services agreement and current regulatory practice. Generally, both airlines must be properly designated or authorised, the arrangement must fall within the rights granted by the bilateral agreement, and the Civil Aviation Authority of Bangladesh must receive the required filings or grant approval for schedules and marketing. The other country's authority may impose its own requirements. We review the bilateral agreement, confirm the approvals needed on both sides and prepare the applications, so that the codeshare can be sold without regulatory objection or last-minute delays that disrupt planned sales campaigns.

02

Can a foreign airline codeshare on domestic flights within Bangladesh?

Domestic air transport is generally reserved to Bangladeshi carriers, and foreign airlines do not normally hold cabotage rights. However, a foreign airline may be able to place its code on a Bangladeshi carrier's domestic flights that connect with its international services, depending on the applicable bilateral agreement, regulatory policy and approval. This can provide useful feed from cities such as Chattogram, Sylhet and Cox's Bazar. We assess whether such a domestic codeshare is permitted in the specific case and how to structure it safely within the rules, including the approvals required.

03

What is the difference between free-sale and block-space codeshare models?

In a free-sale model, the marketing carrier sells seats on the operating carrier's flights from shared inventory, and pays the operating carrier for seats actually sold at agreed prorates. In a block-space model, the marketing carrier buys a fixed number of seats in advance and bears the risk of selling them. Block-space gives the marketing carrier more pricing freedom but more commercial risk, and it can raise different competition and regulatory questions. We help airlines choose the model that suits the route, demand and bilateral framework, and draft the commercial terms, including pricing, payment and capacity review mechanisms.

04

How does competition law apply to airline cooperation in Bangladesh?

The Competition Act 2012 prohibits anti-competitive agreements and abuse of dominance affecting Bangladeshi markets, and it applies to airlines as to any other business. A simple interline or codeshare that adds connections is usually less sensitive than coordination on fares, capacity or schedules between competitors on the same route. Joint ventures with revenue sharing need careful assessment. We review the arrangement, advise on safeguards such as limits on information exchange, and coordinate with foreign counsel where authorities in the United States, the European Union or elsewhere may also be interested in the arrangement.

05

Who is liable to passengers when a codeshare flight is delayed or cancelled?

On international carriage, the Montreal Convention distinguishes between the contracting carrier that sold the ticket and the actual carrier that operated the flight, and passengers may generally claim against either for matters within the Convention. Foreign passenger rights rules, such as those in the European Union or United Kingdom, may also apply depending on the route and carrier. The partners should agree how claims, refunds, rebooking and compensation are handled and who ultimately bears the cost. We draft these provisions so that passengers are treated consistently and recovery between airlines is clear and enforceable.

06

How are interline and codeshare settlements paid out of Bangladesh to foreign partners?

Settlements between airlines are often made through industry clearing systems, but payments from Bangladesh still pass through the banking system and must comply with foreign exchange regulations administered by Bangladesh Bank and authorised dealer banks. Delays in remitting airline revenue have at times been a significant concern for foreign carriers operating to Dhaka. We advise on documentation, contractual payment mechanisms, security arrangements and the steps that help settlements move smoothly, and we act where amounts remain unpaid. Careful drafting of currency and timing clauses in the codeshare or interline agreement reduces later disputes.

07

What safety and audit provisions should an airline partnership agreement include?

Airlines are expected to satisfy themselves about the safety standards of their partners, particularly where their own code appears on a partner's flight. Agreements usually require recognised safety audit status, rights to review audit results, prompt notification of incidents and regulatory findings, and suspension rights if standards fall. Bangladeshi carriers seeking partners abroad should also consider the requirements of foreign regulators and alliance partners. We draft these provisions so that each airline can act quickly on safety concerns without breaching the agreement or creating unnecessary commercial disputes between the partners.

08

How are codeshare disputes usually resolved?

Many international airline agreements provide for arbitration, often in London, Singapore or another neutral seat, with English law governing the contract. Disputes about settlement amounts may first go through clearing house procedures. Where one party is a Bangladeshi carrier, enforcement of a foreign arbitral award in Bangladesh is governed by the Arbitration Act 2001, reflecting the New York Convention. We advise on dispute clauses and governing law when the agreement is first drafted, act in negotiations and arbitration, and enforce awards and judgments against assets in Bangladesh when partnerships end badly.

How a matter runs

From first call to resolution.

  1. 01

    Define the partnership

    We confirm the routes, the level of cooperation, each airline's traffic rights and commercial aims, and review existing agreements, alliance obligations and regulatory constraints before negotiations begin in earnest, so that the term sheet reflects what is legally achievable.

  2. 02

    Check rights and applicable law

    We analyse air services agreements, approval requirements, competition law, consumer rules and foreign exchange issues in Bangladesh and coordinate with foreign counsel on the partner's home jurisdiction and any third countries on the network.

  3. 03

    Negotiate and approve

    We draft and negotiate the codeshare, interline, special prorate and related agreements, prepare filings for the Civil Aviation Authority of Bangladesh and support the airlines until approvals are granted and sales can start on schedule.

  4. 04

    Operate, review and resolve

    Once partner flights are operating, we continue to advise on amendments, new routes, settlement issues, passenger claims, safety findings, renewals, termination and disputes, keeping the partnership compliant, profitable and commercially sound over time.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

What is a codeshare agreement?
A codeshare agreement allows one airline, the marketing carrier, to sell seats under its own flight number on a flight operated by another airline, the operating carrier. Passengers can book connecting journeys through a single carrier, while airlines extend their networks without operating every route themselves. The agreement sets out commercial, operational, safety and liability terms between the two airlines. It also covers how revenue is shared, how disrupted passengers are looked after, how safety is monitored and what happens if either airline loses its traffic rights or wishes to leave the arrangement.
Is an interline agreement the same thing as a codeshare?
No. An interline agreement allows passengers to travel on a single ticket across two or more airlines and have their baggage checked through, with each airline using its own flight number. A codeshare goes further by allowing one airline to market the other's flights under its own code. Many airlines have interline agreements with far more partners than they have codeshares. Interline arrangements are usually quicker to set up, often using industry standard terms, and can be a sensible first step before deeper commercial cooperation. We review interline terms and advise on settlement, baggage, disruption handling and liability provisions.
Does a Bangladeshi airline need to join an alliance to codeshare?
No. Alliance membership is not required for bilateral codeshares or interline arrangements, which are the most common forms of cooperation for many airlines. Alliance membership involves additional standards, costs and commitments and may make sense later. We help airlines assess partnership options in the order that matches their network, fleet and commercial strategy. Bilateral partnerships with carriers that already have strong networks in the Gulf, Asia or Europe are often the most practical route for airlines building international connectivity from Bangladesh, and they can later support an alliance application.
Which regulator oversees airlines and air services in Bangladesh?
The Civil Aviation Authority of Bangladesh regulates aviation safety, licensing and many commercial aspects of air transport under the Civil Aviation Act 2017, while the Ministry of Civil Aviation and Tourism leads policy and air services negotiations with other countries. The Bangladesh Competition Commission and other regulators may also be relevant to specific matters. Foreign regulators on the other end of each route have their own requirements, so a partnership typically needs approvals or filings in more than one country. We coordinate those steps so that the timetables match.
Does the Personal Data Protection Act 2026 affect airline partnerships?
Yes. Codeshare and interline partners share passenger names, contact details, travel information and sometimes sensitive data, often across borders. The 2026 Act and its implementing rules affect how that data is processed and transferred. Agreements should set out each party's role, security standards, breach notification and transfer safeguards, alongside foreign rules that may also apply, such as the European Union and United Kingdom data protection regimes. Security requirements for passenger data, including government requests and advance passenger information, should be considered carefully as well.
Can a codeshare be terminated early?
Most codeshare agreements allow termination for material breach, insolvency, loss of traffic rights or regulatory approval, safety concerns and sometimes convenience on notice. The consequences of termination, including handling of tickets already sold, final settlements and data, must be addressed carefully. We advise on termination rights and manage the process to protect passengers and the client's position. Termination should also be coordinated with regulators, distribution systems and travel agents, so that passengers are rebooked or refunded smoothly and the airline's reputation is protected during the transition.
Do foreign airlines need a local representative in Bangladesh?
Foreign airlines operating to Bangladesh commonly appoint general sales agents or establish branch offices, and regulatory practice may require a local point of contact. The structure affects tax, foreign exchange, employment and liability. We advise on the right model, draft sales agency agreements and assist with registrations so that the airline can sell and operate smoothly. Agency agreements should address ticket sales, remittance of funds, compliance with local and foreign law, termination and the handling of complaints and refunds.
How can TRW help with an airline partnership?
We advise on traffic rights, regulatory approvals, codeshare and interline agreements, alliances and joint ventures, competition law, passenger liability, data protection, settlements and disputes. We work with in-house aviation teams and foreign counsel to keep negotiations efficient. Contact our Dhaka office with an outline of the proposed partnership to discuss scope and timing. We can provide an initial assessment of the regulatory route and the key commercial issues, and then support negotiations and approvals through to launch.

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