A new airline -- Novo Air -- will spread its wings by end-November on the domestic routes with promises of better services and competitive fares.
Initially, the carrier will operate passenger flights from Dhaka to Sylhet, Chittagong and Cox's Bazar.
The airline will later add more destinations, such as Barisal, Rajshahi, Jessore and Syedpur, said its managing director.
"The demand for domestic flights has been increasing fast, but the local airlines are yet to tap the full potential. So we aim to create another option for the local air travellers," said Mofizur Rahman.
"If everything goes right, we will launch our passenger flights by the end of November."
Novo Air has already received a "no objection certificate" from the Civil Aviation Authority of Bangladesh (CAAB) and is now awaiting inspections by the regulator, said Rahman.
The carrier is also in talks with Flybe, a low-cost regional airline group based in the UK, to buy two 50-seater twin-jet Embraer E145s.
The company has recruited an efficient workforce, including pilots, engineers and crew members, Rahman added.
Novo Air is also the general sales agent of Thailand's Tiger Airways and China Southern Airlines.
The company is an air cargo operator under the brand name of DhakaAir, which transports goods both within and outside Bangladesh.
The air traffic on the local routes has been increasing gradually in the recent years due to an expansion of business and industrial activities amid a booming domestic tourism.
Local airlines carried 6.27 lakh passengers on the domestic routes in 2011, a rise by 20 percent compared to the previous year, according to data from the CAAB.
At present, three local carriers -- Biman Bangladesh Airlines, United Airways and Regent Airways -- operate flights to different domestic destinations.
Regent is the market leader in terms of passengers carried by the local airlines.
Local carriers mainly fly on four domestic routes out of Dhaka --Chittagong, Cox's Bazar, Sylhet and Jessore.
Dhaka-Chittagong is the top route in terms of traffic flow, followed by Dhaka-Jessore.
Rahman said Novo Air has also plan to launch international flights.