Comparison of Taxation in the UK and Bangladesh

Comparison of Taxation in the UK and Bangladesh Introduction Taxation: It is concerned with the tradition of a countries government acquiring monetary fund from its countries populace in order for them to fund their public services. [1] For instance, taxation is used to build and maintain its public roads, public libraries, parks etc. Taxation is also used to support the countries security services like the police, army, etc. Task 1 Taxation plays a crucial role for countries throughout worldwide. However, here we are going to discuss brief descriptions of â€Å"Taxation in United Kingdom (U.K.)† and â€Å"Taxation in Bangladesh†. UK has a rather elaborate tax environment and it has several types of taxes, function and purpose, revenue law and practices. They are described below. Function and Purpose of Taxation in Modern Economy in UK Government’s tax policies in the UK are affected by the following factors Economic Factors Social Factors Environmental Factors Economic Factors Net position in connection with taxation and expenditure of the government, along with the borrowing protocol of its public sector has an influence upon the UK’s level of economic activities. Countries government generally prefers long-term planning which illustrates the capacity of the total resources of the economy which the government will allocate and the amount be given for the private sectors. Demand for specific kinds of goods will be influenced. Different sectors level of employment along with different private sector supplier’s profitability will be influenced by the changes in the demand level. Tax policies are used by the government in order to inspire and demoralize specific kinds of activities. Government believes that the latter taxes and duties reflect the additional costs for the entire country. Nonetheless, Government requires increasing fund in order to invest in particular area where there aren’t any consumers upon which the essential taxes can be subjected to tax like: defense, law and order, overseas aid and also the expenditure required for operating the Government and Parliament. Social Factor It is usually considered by some as a â€Å"Fair† way to go about, while on the other hand other may think of it as an en masse â€Å"Unfair† way to do things. For instance, some particular people in the free market are able to muster much larger quantity of income and capital in comparison to other people. Finally whenever the wealth is amassed it only leads to the growth of that wealth through the means of reinvestments of investment income that they gained. This ultimately ends up in the rich amassing more wealth and the poor getting even poorer, which leads to the economic scale being out of balance; meaning that economic power mainly focused in the hands of few individuals. Taxation policies are there to counteract the problem of economic scale being out of balance, which prevents the rich from getting richer and the poor from getting poorer. There are different taxes which influences society. Within â€Å"Direct Tax† and â€Å"Indirect Tax† many types of taxes fall under the categories. Different point of view remains about â€Å"equitable† even though nearly everyone agrees that taxation ought to be equitable or fair. Environmental Factors The movement of taxation system is relatively slow regarding the environmental concerns accommodation, especially in the areas of renewable and non-renewable energy sources and also global warming. However, changes in the taxation system have been introduced in order to accommodate the environmental concerns. Only the effects of the 3rd point will be directly be felt by ordinary people, while the others are going to be felt by those in charge of the business. Overall structure of the United Kingdom (U.K.) tax system and Sources of Revenue Law and Practice are mainly superintended by the HMRC (Her Majestys Revenue and Customs). Overall structure of the U.K. tax system Taxation collections are formally imposed by the Treasury. Responsibility of administration of the Treasury falls under the Chancellor of the Exchequer. The role of governing for collecting tax is initiated by HMRC (Her Majestys Revenue and Customs). ‘Officers of the Revenue and Customs’ are made known in the tax law as the personnel of the HMRC. Fundamentally, they are the one’s duty-bound for overseeing the system of self-appraisal and acknowledging liabilities of taxation. ‘Receivable Management Officers’ are those officers who are responsible for collecting tax. They are provincial civil servants who are answerable for investigating number of taxes which are left unpaid specified to them by the â€Å"HMRC Accounts Office†. â€Å"Crown Prosecution Service (CPS)† – They give legitimate consultation and doctrine and also handles prosecutions of criminals which has been analyzed by the HMRC (Her Majestys Revenue and Customs). Tax appeals are noted by the Tax Tribunal which is comprised of 2 tiers. Sources of Revenue Law Generally, decree imposes the taxes. ‘Statutory Instruments’ ordains the etiquette as well as Acts of Parliament. Decree is made clear and augmented by case law. HMRC (Her Majestys Revenue and Customs) are also responsible for imposing the following points. HMRC publications doesn’t have the force of law, but few of the VAT briefings does wherever authority have been designated subsidiary to constitution. United Kingdom (U.K.) tax system interacts with that of European Union (E.U.) as well as other countries. European Union (E.U.) Its members has a major influence on U.K. taxes, even though there aren’t any prerequisite enforced upon its states (e.g., members of the E.U.) to step towards the typical taxation system or to coordinate their own unique system of tax. ‘Directives’ which are specific laws will be agreed by the states to enact which give for a familiar taxation code within distinct field of their own systems of taxation. Value Added Tax (V.A.T) is without a doubt the most significant reference currently up-to-date. U.K. is duty-bound to accommodate its legislation in accordance with the guideline set forth in the E.U. mandate. Directives of Value Added Tax (V.A.T) will accept some laissez faire amongst its state members (e.g. set up taxation rates). There are only a handful of illustrations of Directives in the field of Direct Taxes. Its main interest in the matter will be associated with cross-border dividend, interest payments and also corporate reorganizations. Nonetheless, being influenced by the provisions of the treaties of E.U., those states who are member must allow of privilege of transferal of workforce, wealth, as well as, the right to set-up mà ©tier anywhere interior of the boundaries of the E.U. These accord arrangements have a ‘direct effect’. European Justice Court consistently pointed out that the policy of tax which victimizes non-residents is contradictory to the laws of European Union (E.U.), except in cases where there is powerful rationale regarding interest of the public. Other Countries United States of America (U.S.A.) along with several other countries has a treaty with the United Kingdom (U.K.) which is known as the ‘Double Tax Treaty’. Incorporated within this decree are regulations which thwart earnings and benefits being taxed not just once but twice. Also, included within this decree, the law which forbids nationals from foreign countries from being discriminated (e.g. treating nationals with benevolence, while on the other hand treating the non-residents with prejudice). Additionally, statute exists which allows different Revenue administration to share intelligence. The system of taxation of U.K. grants alleviation for taxes which are paid in foreign countries, even though there is no double tax relief. Task 2 Tax Practitioner: They are the people who are being paid to prepare taxes every year.[12] Tax Practitioner has several responsibilities and critical obligations.   Task 3 As, Mr. Abid’s tax lawyer one can give couple of recommendations regarding his entitlement, exemptions and obligations for taxation in the United Kingdom (U.K.) tax environment. First and foremost, Mr. Abid isn’t currently a resident of United Kingdom (U.K.). However, his wife Mrs. Narida is an United Kingdom (U.K.) resident living in the United Kingdom (U.K.) currently. Mrs. Narida has accessories business in the United Kingdom (U.K.) and she is also helping her husband (i.e. Mr. Abid) business of selling accessories in the United Kingdom (U.K.) as his proxy. Here, currently he is obligated to pay income tax and also corporate tax in both the countries due to the provision known as ‘Double Tax Treaty’ – due to the fact that he is not a resident of the United Kingdom (U.K.) as of yet. And for this instance, he won’t get an exemption on income and gains; however, he would have gotten some exemptions if he was a resident of the United Kingdom (U.K.), but doing business outside the country. It would be much easier for him to become a resident of United Kingdom (U.K.) because his wife is currently a resident of United Kingdom (U.K.). Once he becomes a resident of the United Kingdom (U.K.), he is required to be present in the country of United Kingdom (U.K.) for at least half-a-year/ or about six months (approximately 183 Days) or more. But, if he were to make commodious annual visit to the United Kingdom (U.K.) like for a time length of approximately 91 Days or more in a year for 4 or more perpetual years; then he will be considered as a resident of the country of United Kingdom (U.K.), and will be entitled to pay taxes according to the rules and regulations of United Kingdom (U.K.) tax system. Again, once Mr. Abid is a resident of the country of United Kingdom (U.K.), he is also entitled to pay Council Tax. His wife Mrs. Narida lives in a rented house with his mother whose age is around 70 Years. And so, when he becomes a United Kingdom (U.K.) resident, he may get an exemption on his Council Tax, based upon the fact that an aged person is also living with them. It is generally, better for large number of people to live together because depending on the size and type of people living in the property can be a powerful rationale for exemption like single person, or people living with children under the age of 18, or the disabled and pensioners are entitled to exemptions. Next would be Inheritance Tax. Mr. Abid, 8 years in the past got a house as a wedding gift which was worth more than  £ 310,000. Mr. Abid inherited it from his wife. So, he has to pay Inheritance Tax. He may have gotten so exemptions but due to the fact he isn’t a resident of the country of United Kingdom (U.K.), he is not going to get any kind of tax exemption. Next is Capital Gains Tax. Mr. Abid will also have to pay Capital Gains Tax, once he sells the house which was given to him as a wedding present by his wife Mrs. Narida. And now finally we come to Value Added Tax (V.A.T.). Value Added Tax (V.A.T.) is a system of taxation which is internationally practiced. So, no matter which country he/she is staying in they all have to pay Value Added Tax (V.A.T.) which also includes the country of United Kingdom (U.K.). Case 2: â€Å"Tax Non-Compliance† is mainly comprised of â€Å"Tax Evasion† and â€Å"Tax Avoidance†.   Generally, the distinction between â€Å"Tax Evasion† and â€Å"Tax Avoidance† is rather vague to say the least; however, there are some differentiations between them. Here, in Case 2, at first Tanzila received property income of  £ 5,000 but accidently entered the figure on her tax return as  £ 500. While on the other hand, Mitu received property income of  £ 7,000 and deliberately declared  £ 5,000 on her tax return. In both these cases, both of them have misled HMRC (Her Majestys Revenue and Customs) by providing wrong information. So, they both committed the crime of â€Å"Tax Evasion†. However, there is a subtle difference between them. In Tanzila’s case, while she did provide misleading information to the HMRC, she did not do so purposely; she entered the information wrong by accident. She didn’t mean to give the wrong information deliberately. And so, this will be treated as minor case of â€Å"Tax Evasion† and will be dealt out of count on the payment of penalties. Because, there is no need to cause too much trouble for such unintentional mistakes. While on the other hand, Mitu deliberately provided HMRC with false information. So, unlike Tanzila’s case this cannot be treated as case of minor human error. Here, she intentionally trying to evade tax which is a serious crime of â€Å"Tax Evasion†, As such, Mitu will be subjected to criminal prosecutions, which might ultimately end up in her having to pay fines and/or imprisonment on conviction. [1] http://www.vocabulary.com/dictionary/taxation [2] http://en.wikipedia.org/wiki/Taxation_in_the_United_Kingdom [3] http://en.wikipedia.org/wiki/Taxation_in_Bangladesh [4] http://www.investopedia.com/terms/d/directtax.asp [5] http://www.investopedia.com/terms/i/indirecttax.asp [6] http://www.investopedia.com/terms/i/incometax.asp [7] http://www.investopedia.com/terms/c/corporatetax.asp [8] http://www.investopedia.com/terms/i/inheritancetax.asp [9] http://www.investopedia.com/terms/c/capital_gains_tax.asp [10] http://www.thefreedictionary.com/council+tax [11] http://www.investopedia.com/terms/v/valueaddedtax.asp [12] https://answers.yahoo.com/question/index?qid=20101127121537AAXMjCR [13] http://www.enotes.com/homework-help/what-roles-responsibilities-tax-practitioner-441765 [14] http://en.wikiquote.org/wiki/Tax_noncompliance [15] http://www.investopedia.com/terms/t/taxevasion.asp [16] http://www.investopedia.com/terms/t/tax_avoidance.asp [17] http://www.nouse.co.uk/2013/01/22/what-is-the-difference-between-tax-evasion-and-tax-avoidance/

Analysis of “You may turn over and begin” by Simon Armitage

â€Å"You may turn over and begin† is an interior monologue of a person who is sitting an exam, seemingly on the subject of General Studies. The title itself lends itself well to this theme as â€Å"you may turn over and begin† are the words an exam invigilator says as an exam begins. The poem follows the thoughts of the speaker who may or may not be Armitage himself as he sits the exam whilst musing over exam questions and other things that enter the speakers thoughts when he has finished the paper. The first line of the poem could be said to be the title itself as it directly links to the first line of the main body of the poem. While the title is said by someone else the remainder of the poem is the thoughts of the speaker, the fact that it is someone's thoughts is reinforced by the seemingly random train of thought and the subjects themselves which are personal in nature- i.e. the speakers thoughts on â€Å"milk white breasts and†¦ virginity† in lines 12 and 13. The questions themselves are not typical of a general studies exam and are seemingly random, much like thought processes often are, though reference to â€Å"the decameron† could be linked to the adolescent and hormonal thoughts of lines 12 and 13. Armitage's reputation for representing and understanding youth culture is highlighted by his reference to the general studies exam as â€Å"..a doddle, a cinch for anyone with an ounce of common sense† in lines 6 and 7. This concept of general stud ies remains true today while the speaker's insight on the use of â€Å"†¦a calculator with a memory feature† to cheat shows the writer's comprehension of such things. Lines 10 and 11 reinforce the idea of general studies being an unimportant exam as the speaker neglects to check the work, instead choosing to let the mind wander. The next few couplets reflect on the injustice of male/female relations at that age whereby the boys are in a frenzied hormonal state while the girls remain untouchable â€Å"long and cool†¦out of reach†. Use of imagery is evident as mention of the â€Å"†¦the heat† in line 14 points to enforced sexual repression on the part of men that age, while â€Å"†¦long and cool like cocktails† indicates the heightened maturity of women (though referred to as girls by the speaker) at that age. There is further imagery shown by the lines describing â€Å"†¦their buns and pigtails only let out for older guys† which makes the link between the exertion of control evident in those hairstyles, which in turn is relaxed for older men. This is a metaphorical representation of sexual control. As is common with thought patterns the subject suddenly changes in line 20 where the speaker reminisces on an occasion when the cold control of teenage girls is lost as a â€Å"jot of consolation†. The following couplets detail a comical situation which dispels some of the faà ¯Ã‚ ¿Ã‚ ½ade the speaker has built up about teenage girls. Lines 24-27 detail the girl primping herself but 28 and 29 tell of the motorbike pulling away, it is a typical of a story which would circulate around a college and the speaker reinforces this in line 30, referring to it as a â€Å"†¦rumour†¦Ã¢â‚¬ . The final line answers the first question posed by the exam paper and once again follows the theme of random thoughts as the answer just pops up, much as it would into one's mind. It may also be noted of this poem that, due to strong allusions to the fact, that it is Armitage or at least a male who is writing this, though there are no specific mentions of the speakers sexuality, merely re ferring to his/herself in the first person ‘I'. The structure of the poem is both random and yet structured. The lines are set out in 16 couplets (possibly a connection to the age of the speaker at time). Enjambment is evident in how the lines straddle separate couplets which connotes the theme of random thoughts without structure or regulated progress. The metre itself also reflects this with a seemingly random variance in syllables which reflects the fairly random process of thought. While the majority of the lines within a couplet hold a similar metre (lines 1-2 with a 8 and 9 syllables respectively etc) one couplet that does stand out as breaking that mould that of lines 12 and 13. Line 12 has 14 syllables while 13 has 4 with â€Å"virginity†. The separation of the word from the others and putting it on its own both represents the importance of the subject to adolescent males while also possibly representing the speakers embarrassment about the subject. The use of couplets serves to create a slow methodical rhythm in the poem. Coupled with this, examples of unstressed and stressed syllables within the couplet rhyme create a sense of the multiple choice nature of the paper the speaker is sitting. This is particularly evident in the first and second couplet. The rhythm is fairly structured when read aloud, this is compounded by use of strong para-rhyme- e.g. â€Å"..specifically/virginity†¦Ã¢â‚¬ , â€Å"†¦Honda/amber†¦Ã¢â‚¬ . The absence of a strict rhyme scheme or metre is in keeping with the unsystematic nature of the thoughts of a person, though it must be noted that there is some structure to the poem as there is in some sections of the monologue of the speaker. An example of this is line 20 â€Å"One jot of consolation† which seems an unlikely sentence to actually think, though it does serve to create a division in the speaker's thoughts on lusting after girls from the story about the â€Å"†¦spind ly girl riding pillion†. Armitage is very much perceived as being of the ‘poetry is the new rock and roll' era so it is not surprising that much of the vernacular and thoughts are akin to that which people of the college age. As is true of many contemporary poets the use of brands is evident â€Å"†¦her man's new Honda† while much of the lexis, as previously mentioned, is colloquial, I.e. â€Å"†¦a doddle, a cinch†. Particular attention is made to the appearance of the girl in lines 24 to 27 with pre modification evident, â€Å"†¦her tight jeans† which continues the theme of a hormonal teenager lusting after girls. The poem itself is a mixture of teen angst and comedy. We can assume that Armitage writes this poem from personal experience as most men can identify with the thoughts of the speaker, while everyone who has taken the general studies exams will identify with the speakers opinion on it as a bit of a waste of time. As a male I can sympathise with the speaker while a female reading this would be, in my opinion, more likely to focus on the comedy aspect of the poem rather than the hormonal maelstrom that is shown in the first half of the poem. While the structure, rhythm and lexis all support the context of the poem it may be said that while the theme of random thought is well presented there are sections which detract from the success of the attempt to achieve this theme. This mainly manifests itself in the ordered nature of some of the narration and use of simile (â€Å"long and cool like cocktails†) which is not a realistic thought. Despite this the devices used combine to good effect in this perception which is very easy to identify with.

Airline Industry Bangladesh Essay

ABSTRACT Air transport is one of the most dynamic and fastest growing transportation systems. Formation of regional and sub-regional co-operation will have a significant influence on air transportation system. Realizing the potential of air transportation in the country and region, after the recent air transport deregulation in Bangladesh, a number of private airline companies have started their operation which results in a better and competitive market. The paper focuses on the impacts of privatization on aviation industry of Bangladesh. This paper presents the results of a study on the comparison among various private and public airline companies and analyses their problems and provides some guidelines for their development. The results show that the supply cost of the private airlines is 40 percent lower than the same for public airlines. The results of this study can be used by the South and Southeast Asian countries to develop policies in this regard. INTRODUCTION Privatization of the airlines is more generally known as deregulation of the airlines industry. In the last two decades air transport world have witnessed dramatic changes in the deregulation in this sector. The movements towards the deregulation of the air transportation industries with the â€Å"1978 Deregulation Airline Act† have significantly altered the operating environment for the firms providing passenger and cargo transportation related services. With the airline deregulation, airlines were permitted to choose the routes and fares. These changes have had profound effects on many aspects of airline operations, particularly fares, level of service and routing. Through privatization of air transportation in Bangladesh the Government has opened up a new horizon. To achieve a competitive environment and maximize the benefit, private airlines can control their scale of operation, effectively pursue cost reduction measures, and generate additional demand through improved services and reasonable fares. By providing improved level of service and lower fare the private airlines may create new demand which will result in unit cost reduction and allow further fare reductions and service improvement. This virtuous circle should continue to strengthen the position of the operators and increase consumers’ benefit. Moreover, recent trends in the development of regional and sub-regional co-operation together with foreign investments in remote areas will have a significant influence on air transportation system. These cooperative frameworks will demand dynamic changes both in routing and scheduling of air transportation. Public airlines are incapable of dealing with these changes due to their bureaucratic structure and lack of motivation. To develop the policies for privatization and regulation of air transportation market it is necessary to analyze various aspects of the system. This paper focuses on the potentiality of the private air transport operators in Bangladesh. The paper has been prepared on the basis of a detailed study on demand and supply of air transportation in the country (Karim, 1998). The paper discusses the impact of deregulation on different cost items of airline operation. The aggregate cost of operating the airlines has been segregated into major cost items. Then comparison is made between public and private airline operators on the basis of these cost items. The paper also identifies several areas where adequate regulations are required for the overall betterment of t he system. The objective of the study is to investigate the potentiality of the changes brought about by privatization in air transportation in Bangladesh. The results will help the operators in the industry to develop their strategies. As the East, Southeast and South Asia are expected to experience a high economic development as well as a shift towards service and hi-tech industries, their demand for air transportation is also expected to increase accordingly. In this regard, the results of this study are important for these countries also. AIR TRANSPORTATION AND AIRLINES IN BANGLADESH The domestic air transportation network in Bangladesh is comprised of 8 conventional (full-size) airports, 8 airports for STOL (Short-Take-Off and Landing) aircraft including two airports under construction. The 8 conventional airports, which are used for commercial purpose, handle widely varying traffic volumes. The largest airport is Zia International airport near Dhaka and the smallest one is Cox’s Bazar airport. The most important corridors, as measured by air passenger volumes, are those between Dhaka, at one end, and Chittagong, Jessore, Sylhet at the other end. At present there are five airlines operating in Bangladesh. They comprise one public airline and four private airlines. The state owned national carrier, Biman Bangladesh Airline (BBA), is the oldest and has been the only operator in domestic arena until the recent past. It has generally been a losing concern contributed by many factors that could include inappropriat e size of aircraft to handle low volume of demand, insufficient level of operation and inefficient management. Although air transport carries only a small portion of total passenger and cargo movement in the country, its relative importance is much higher if aspects such as value of the product as well as time, speed and efficiency of the alternative modes are considered. Realizing its importance and considering the opportunities that exist, private airline companies (PAC’s) have now joined the fray of enticing domestic passengers and freights. This trend in domestic air transportation market is expected to reduce the monopoly of BBA and make air transport mode a better as well as competitive one for domestic transportation. Biman Bangladesh Airlines and four independent airline companie s are regulated by the government authority named Civil Aviation Authority of Bangladesh (CAAB). Fares are subjected to the approval of CAAB and certain minimum standards of service are imposed on the airline companies. Initially the fares of private airlines were 39 to 50 percent higher as compared to that of BBA. Recently BBA has increased its fare by 25 percent. Although it seems that the fares of the private airlines are higher than the same of BBA, the demand of private airlines has been increasing. This may be caused by better quality of service which include punctuality, regularity, improved customer services and lower waiting time. INTRODUCTION OF PRIVATE AIRLINE COMPANIES In October 1993 the CAAB advertised for applications from the interested parties to start airline operation. Although about 50 organizations submitted their proposals, the Government of Bangladesh (GOB) permitted twenty-seven of them to operat e. Three of them have already started carrying passengers and one has ventured into cargo transportation. These airlines tended to become very popular and the passengers who used to travel by Biman for so long have started showing their interest in traveling by private airlines in domestic routes. A brief description of these airlines is given in the following section, which is also summarized in Table 1. Aero Bengal Airlines (ABA) Aero Bengal Airlines was the first private airlines in the country and started its flight operation on Dhaka-Barisal route with two Chinese built 17-seater Y -12 aircraft. Later a leased Russian built 48-seater N-24 aircraft was included in ABA fleet for the operation in Dhaka-Sylhet and Dhaka-Chittagong routes. Air Parabat The airline has started commercial flight operation with two brand new Czech-built 19-seater LET L410 aircraft on all the routes operated by Biman (except Ishurdi). It is now planning to add destinations like Thakurgaon, Lalmonirhat, Shamshernagar to its network in near future after procuring two more Czech-built LET L410 aircraft. Air Parabat has appointed Airspan as its General Sales Agent (GSA) which will be responsible for all the advertising and customer services for Air Parabat and in this way they are saving their overhead expenditure. At the moment, it is operating profitably and has no dues owed to the CAAB. The airline is expecting to recover their investment in 7 years. GMG Airlines Starting operation of commercial flights in early 1998, GMG airlines have emerged as the leading private airlines in Bangladesh. GMG started with Canadian manufactured Bombardier built 37-seater full- fledged aircraft. It operates a number of flights in Dhaka, Chittagong, Sylhet, Jessore, and Barisal every day and has plans to expand the network of destinations at home and aboard. The airline has signed an inter- line traffic agreement with British Airways (BA) enabling them to sell tickets to different destination of the world via BA. GMG Airlines have already made an investment of Tk. 1.00 billion (US$ 20 million). It has also planned to spread wings overseas and already sought permission from the government to operate in international destinations. This is a good planning because if GMG make progress and can operate South Asian countries, they would probably become the leading private airline in the region. Omni Airlines This airline only deals with cargo operation. Most of the cases the company provide the logistic support via using aircraft of other companies. It has also started air cargo operation for international destinations. During the devastating flood of 1998 when most of the national highways and railways were inundated and surface transportation became inoperable, many exporters especially garments manufacturers used the airline to transport their product to the port. Table 1 presents a comparison among the inventories of BBA and PACs. This comparison indicates that BBA operates at lower load factor with respect to PAC’s. This may be caused by the size of aircraft, which seems to be too large for low level of air travel demand existing in the country. Table 1 Inventory of the Airline Companies Operating in Bangladesh. Name of the airlines Biman Bangladesh Airlines Aero Bengal Ailines Air Parabat Limited GMG Airlines Year of Starting Service 1972 No of Aircraft 4 Type of Aircraft F-28 ATP AN-24 Y-12 LET-410 – UVPE. DASH 8SRS 100 No. of seats 85 70 48 17 19 37 No of weekly flights 68 Avg. Pass. Load factor 55-60% (approx.) 75-80% (approx.) 80-85% (approx.) 80-85% (approx.) Avg. No. of Pass. (Weekly) 5134 July, 1995 January, 1998 April, 1998 3 2 2 18 56 35 1016 1294 1520 For the three PAC’s the sizes of the aircrafts seem to be more preferable for profitable operation. Figure 1 illustrates as comparison of usage among BBA and PAC’s in the domestic routes. In most important routes BBA is still dominant whereas in other routes passenger movement of BBA and PACs are almost same. In the Dhaka-Barishal (BZL) route the number of passengers carried by PCAs is higher than the same for BBA because the latter does not operate regularly in the route. 1500 No. of Passenger 1200 900 600 300 0 CHI ZYL JSR SPD RAJ CXB BZL BBA Air Parabat Aero Baegal GMG Airlines Figure 1: Passenger Movement Comparison between BBA and PACs AIRLINE OPERATION COST IN BANGLADESH In this section, the cost of operating airlines in Bangladesh is analyzed. The costs for public and private airliners are analyzed separately to facilitate comparison between them. Here the cost elements are calculated on the basis of average monthly costs because actual data supplied by various airlines are monthly data for different cost items. This cost is transformed into the cost per passenger for different routes. For the development of cost function nine principal cost elements are included in the analysis. The cost variables included on the analysis are shown in Table 2. The values of these variables are calculated on the basis of twenty-two secondary cost factors, which are also mentioned along with the principal cost variables in the table. For the analysis, data has been collected for several years for all the routes considered in the study. Table 2 Cost Elements Analyzed in the Study with their Notations Cost Elements Administrative Cost Maintenance Cost Marketing Cost Civil Aviation Charges Running cost Capital Cost Contingency Cost Procurement Cost Profit Important Cost Elements To describe the supply analysis conveniently all the costs are grouped under two heading namely ‘Total Operating and Maintenance Cost’ (TOMC) and Total Cost (TC). TOMC includes administrative, maintenance, Civil Aviation charges, running, capital and marketing costs and TC includes TOMC, contingency and procurement cost. Among the nine principal cost elements, running cost is the most important one (on an average 39 percent of TOMC. Other important cost elements are capital cost (33 percent) and maintenance cost (19 percent). Small variation in these figures will result in a significant change in operator’s revenue and profit. Among the nine cost elements administrative, Civil Aviation charges and marketing cost do not vary significantly although these costs includes both fixed and variable cost. Fixed cost is the main portion of these costs because these costs don’t vary greatly with the increase in the number of flights or distances traveled. Effects of Scale of Operation on the Cost Elements Using small-scale aircrafts, civil aviation charges and capital cost can be saved significantly. For larger aircrafts greater charges are imposed by the Civil Aviation Authority. Similarly, capital cost is a function of cost per hour of operation and load factor, which also depend on the size of the aircraft. For example, private airlines use comparatively smaller size of aircraft that results in savings of 20 percent of civil aviation charges. Also by using smaller aircrafts these airlines are able to attain higher load factor than BBA. Due to higher load factor the capital cost per passenger reduces significantly. For the same reason a small amount of maintenance and running cost can also be saved. Although BBA purchased larger sized aircrafts to operate in domestic routes to achieve scale economy, it seems that smaller aircrafts are more suitable due to low air travel demand in the country. Symbol C1 C2 C3 C4 Secondary cost components No. of flight (Fl), Capacity of aircraft (Q), Load factor (I) No. of flight (Fl), Capacity of aircraft (Q), Load factor (I) No. of flight (Fl), Capacity of aircraft (Q), Load factor (I) Night surcharge (Ns), Hanger charge (Hn ), Cost of parking charges (Pa), Landing (La), Security charges (Su) and Navigation charges (N a). Cost fuel per liter (Fu), fuel consumption of aircraft per hour(Fc), Trip distance of travel (TD) Fleet size (La), Flying time of aircraft (Ft ), Cruising speed of aircra ft (Sp ) Total cost Number of flights (Fl) Total cost (TC) C5 C6 C7 C8 C9 One of the major cost items of air transportation for both types of operator is unexpected accident or technical fault of aircraft during the operation period. Contingency and procurement cost are 15 percent and 12 percent of TC respectively. If operators can maintain their aircraft more efficiently they can enjoy significant savings in these areas also. Cost Comparison between Public and Private Airlines Comparison between the public and private airlines on the basis of various cost items is given in Table 3. The values in the table represent the ratio between cost per passenger for BBA and average of the same for PACs for all the cost elements discussed earlier. It shows that the costs incurred by BBA are higher for all the cost elements. The differences are very prominent for administrative cost, maintenance cost and civil aviation charges. The negative ratios for the case of profit imply that for BBA the total cost is higher than fare, which results in losses for the airline. Table 3 Ratio between the Costs of Public and Private Airlines on the basis of cost elements. Routes DAC-CHI DAC-ZYL DAC-JSR DAC-SPD DAC-RJH DAC-CXB DAC-BZL Adm Cost (C 1 ) 1.6 1.58 1.66 1.88 1.89 1.93 1.51 Maint Cost (C 2 ) 1.37 1.31 1.39 1.56 1.57 1.44 1.14 Aviat. Charge (C 3 ) 1.23 1.23 1.23 1.19 1.19 1.24 1.24 Run. Cost (C 4 ) 1.16 1.19 1.21 1.03 1.39 1.04 1.04 Capit. Cost (C 5 ) 1.04 1.07 0.98 1.14 1.28 1.11 1.03 Mark. Cost (C 6 ) 1.15 1.11 1.16 1.19 1.21 1.11 1.12 Cont. Cost (C 7 ) 1.17 1.22 1.19 1.06 1.26 1.08 1.41 Proc. Cost (C 8 ) 1.23 1.21 1.14 1.09 1.25 1.09 1.23 Profit (C 9 ) -3.46 +.01 -2.38 -1.46 -1.16 +0.26 -1.36 IMPACTS OF PRIVATIZATION ON AIR TRANSPORTATION IN BANGLADESH The introduction of PAC’s in the aviation sector of Bangladesh is expected to bring about some short and long-term effects in the air transportation sector of Bangladesh, at least in the domestic routes. These effects are discussed below. Making Profit Oriented Service Introduction of private airline in Bangladesh will compel the state-owned BBA to be a profit-oriented organization rather than being only service oriented because the plane journey is made by the rich who do not require any subsidy. The competition is also expected to improve level of service. Increase in Fare Pursuing a wrong policy, the fares charged by BBA in domestic have always been less than the actual cost which resulted in huge losses (over US$ 4 million in 1997). Private airline imposes a higher fare pressuring Biman to increase fare. It increased fare by 15% in July 1996 and could make up losses of about US$ 1 million annually. In 1998 BBA ag ain raised fare so that it can reach breakeven point and make profit on the domestic sector. Improvement of Customer Service Due to the introduction of private airlines, the customer facilities have improved a lot. Customers seem to be very satisfied with the overall services provided by the private airlines. Private airlines provide regular and punctual services with less waiting time and, very easy and informal ticket confirming process that improves the level of service of the operation. Better Competitive Market In case of GMG Airlines the promoters have sought for permission from the government to operate air service on the international routes. Government is considering to accord permission to private airlines so that they can operate service among SAARC countries. In that case the government of SAARC nations will have to change their rules allowing more than one carrier of each country to operate air service among SAARC nations. All these changes will make the domestic as well as r gional air travel market a very e competitive one and this open air policy will construct a good future for the coming private airlines in this market. REGULATIONS NEEDED FOR PRIVATE AIRLINES Although PAC’s have shown a great a potential to improve the airline market of Bangladesh into a better competitive mode, but there exist some issues which should be carefully considered to develop a better future for the industry. Some of these issues are discussed in the following section. Schedule Problem in low Demand Routes Due to insufficient demand in some domestic routes, sometimes private airlines have failed to maintain their schedules properly or stopped operation in those routes. This may hamper future expansion in these routes. Government may consider subsidizing these routes. Choice of Aircraft One of the dominant factors of airline business is the appropriate size of aircraft. But some airlines have failed to procure proper and suitable aircraft for their operation. They have purchased aircrafts those are too backdated for safe and profitable operation. Proper advice and guidance are required in this regard. Development of long-term Strategic Plan Except GMG Airlines others have no long-term strategy or any specific future plan to expand and develop their operation. These airlines even had not even made any feasibility study before they started their business. As airline industry requires huge capital investment, long term strategies are vital for survival in the business. Level of Service Standards In some cases the private airlines have failed to improve quality service especially in the case of passenger compensation. Government should make strict regul ation in this regard and ascertain consumers’ right. Poor Performance in Analyzing the Current Condition The PCAs do not have good record keeping mechanism and thus unable to make routine performance evaluation or at least analyze or check the current cost and revenue conditions. Due to lack of experience in the aviation market, these new airline companies sometimes ignore the basic management principles. Lack of adequate consideration in this area may lead to financial and management crisis. Safety Aspect For profit maximization purpose, private airlines may neglect the safety issue, which is the most important factor of airline business in terms of reliability. Civil Aviation authority must impose some strict guidelines and safety precautions for providing the service on the private companies. At present twenty-seven airlines have the permission to operate in the domestic routes of Bangladesh. For the success of privatization policy it is essential for the airlines currently in operation to present a better and efficient performance. As the air travel demand in the country is still v ery low, entry of too many operators may jeopardize the situation. Also proper training related to the technology and systems need to be arranged. CONCLUSIONS A comprehensive review of the potentiality of privatization of domestic air transportation system of Bangladesh has been presented in this paper. The short-term trend suggests that the private airlines have a great opportunity in the domestic air travel market of the country. Their performances are quite satisfactory. There still exist a lot of room for improvement. This paper is concluded by addressing some implications in the light of the results of this study. (1)The trends in domestic air travel demand in Bangladesh suggest that in near future private airline companies will dominate the domestic market. (2) The operating costs of government operators are about 25-30 percent higher than those of the private operators under the same level of service. (3) From the cost elements it is evident that the administrative and maintenance costs of the public airline are significantly higher than the same for private airlines. This is indicative of the lack of management efficiency existing in the country. (4) Due to the introduction of private airlines the consumers’ benefit has increased significantly. (5) Although the private air line companies have so far performed quite satisfactorily, for betterment of aviation industry of the country and success of privatization policy of the government, some regulations need to be imposed. For this purpose a governing and advisory organization is required. ACKNOWLEDGEMENT The authors are grateful to the private airline companies as well as to the authority of Biman Bangladesh Airline for their help during the course of this study. REFERENCES BBS (1996), Statistical Y Book of Bangladesh, Bangladesh Bureau of Statistics. ear Karim, D.M. (1998), A Study on Demand and Supply of Domestic Air Transportation in Bangladesh, Research Project Report, Department of Civil Engineering, BUET, Dhaka.

Ptolemys Contributions to Geography

Not much is known about the life of the Roman scholar Claudius Ptolemaeus who is more commonly known as Ptolemy. However, he was estimated to have lived from approximately 90 to 170 CE and worked in the library at Alexandria from 127 to 150.   Ptolemys Theories and Scholarly Works on Geography Ptolemy is known for his three scholarly works: the  Almagest—which focused on astronomy and geometry, the  Tetrabiblos—which focused on astrology, and, most importantly, Geography—which advanced geographic knowledge. Geography consisted of eight volumes. The first discussed the problems of representing a spherical earth on a flat sheet of paper (remember, ancient Greek and Roman scholars knew the earth was round) and provided information about map projections. The second through seventh volumes of the work was a gazetteer of sorts, as a collection of eight thousand places around the world. This gazetteer was remarkable for Ptolemy invented latitude and longitude—he was the first to place a grid system on a map and use the same grid system for the entire planet. His collection of place names and their coordinates reveals the geographic knowledge of the Roman empire in the second century. The final volume of Geography was Ptolemys atlas,  featuring maps that utilized his grid system and maps that placed north at the top of the map, a cartographic convention that Ptolemy created. Unfortunately, his gazetteer and maps contained a great number of errors due to the simple fact that Ptolemy was forced to rely upon the best estimates of merchant travelers (who were incapable of accurately measuring longitude at the time). Like much knowledge of the ancient era, the awesome work of Ptolemy was lost for over a thousand years after it was first published. Finally, in the early fifteenth century, his work was rediscovered and translated into Latin, the language of the educated populace. Geography gained rapid popularity, and there were more than forty editions printed from the fifteenth through sixteenth centuries. For hundreds of years, unscrupulous cartographers of the middle ages printed a variety of atlases with the name Ptolemy on them, to provide credentials for their books. Ptolemy erroneously assumed a short circumference of the earth, which ended up convincing Christopher Columbus that he could reach Asia by sailing west from Europe. Additionally, Ptolemy showed the Indian Ocean as a large inland sea, bordered on the south by Terra Incognita (unknown land). The idea of a large southern continent sparked countless expeditions. Geography had a profound effect on the geographical understanding of the world in the Renaissance and it was fortunate that its knowledge was rediscovered to help establish geographical concepts that we almost take for granted today. Note that the scholar Ptolemy is not the same as the Ptolemy who governed Egypt and lived from 372-283 BCE. Ptolemy was a common name.