[🇧🇩] Aviation Industry in Bangladesh

[Saif]

UK keen to support to transform Bangladesh into aviation hub

The United Kingdom is committed to playing a supportive role in transforming Bangladesh into an aviation hub, said UK High Commissioner to Bangladesh Sarah Cooke on Wednesday. The envoy made the remark during a meeting with Civil Aviation and Tourism Minister Mohammad Faruk Khan at his residence i

thefinancialexpress.com.bd

UK keen to support to transform Bangladesh into aviation hub
BSS
Published :
Apr 24, 2024 22:07
Updated :
Apr 24, 2024 22:07

The United Kingdom is committed to playing a supportive role in transforming Bangladesh into an aviation hub, said UK High Commissioner to Bangladesh Sarah Cooke on Wednesday.

The envoy made the remark during a meeting with Civil Aviation and Tourism Minister Mohammad Faruk Khan at his residence in the capital, said a press release here.

During the meeting, Cooke said the UK is now eager to expand cooperation in a wider range of potential new areas, including the development of technical skills in Bangladesh's aviation industry, the training of skilled personnel, and the further enhancement of security measures.

She mentioned that the two countries have previously worked together in various sectors of the aviation industry, including the development of airport security systems.

In response, the minister welcomed the UK's friendly cooperation in successfully transforming Bangladesh into an aviation hub.

He expressed his delight at the prospect of the two countries working together to develop the aviation industry.

The minister added that the scope for collaboration between the two countries in various areas of the aviation industry will be explored.

Faruk Khan further stated that the government, under the leadership of Prime Minister Sheikh Hasina, is working to transform Bangladesh into a major aviation hub.

He mentioned that extensive development work has been carried out at all airports in the country, including the construction of a third terminal at Hazrat Shahjalal International Airport, and that further development work is underway.

He also mentioned that the government is working to transform Syedpur Airport into a regional hub.​

 

[Saif]

https://thefinancialexpress.com.bd/trade/airbus-keen-to-build-long-term-tie-with-bangladesh

Airbus keen to build long-term tie with Bangladesh
FE ONLINE DESK
Published :
May 15, 2024 21:37
Updated :
May 15, 2024 21:37

European commercial aircraft manufacturing giant Airbus is interested in building a strong and long-term collaboration with Bangladesh to contribute to the sustainability and advancement of the country's aviation sector.

This proposal came up while visiting Airbus Executive Vice President (International) Wouter van Wersch held a meeting with civil aviation and tourism minister Muhammad Faruk Khan at the secretariat, reports BSS.

The Airbus Vice President was accompanied by French Ambassador to Bangladesh Marie Masdupuy and British High Commissioner to Bangladesh Sarah Cooke.

"Airbus is keen to provide different types of technical assistance as well as offering training to the workforce working in Bangladesh's aviation sector. That's why we are working to build up a strategic partnership with Bangladesh's Aviation University," Wouter said.

He said his company would like to be a partner in making Bangladesh an aviation hub.

Currently, a negotiation is going on between the state-owned Biman Bangladesh Airlines and Airbus, as the Bangladesh government will purchase new aircraft for the national flag carrier.

Fauk Khan said Biman has formed a high-level evaluation committee to review Airbus's financial proposal in this connection.

Meanwhile, the minister said Boeing has likewise given a decent proposition, which is also under Biman's review. "Which will be good for Bangladesh and Biman and we will consider that," Faruk added.

He said, as per Prime Minister Sheikh Hasina's directive, his ministry is working to transform Bangladesh into a major aviation hub in South Asia.

Later, French multinational company Thales International Bangladesh Country Director Benoit Nalin held a separate meeting with Faruk Khan.

In the meeting, Nalin showed his keen interest to provide technical assistance to Bangladesh aviation's Air traffic management, developing the Instrument Landing System (ILS) and Smart airport management.

Thales designs, develops and manufactures electrical systems as well as devices and equipment for the aerospace, defence, transportation and security sectors.​

 

[Saif]

Biman does a 180 to buy Airbus planes

In January this year, Biman found that it would be making massive losses if it bought two Airbus A350 planes.

www.thedailystar.net

Biman does a 180 to buy Airbus planes
In 3 days reconstituted evaluation body finds purchase viable after old committee gave the thumbs down

Representational Image/Biman website

In January this year, Biman found that it would be making massive losses if it bought two Airbus A350 planes.

On April 22, a new appraisal committee took over the evaluation and, in only three days, concluded that it would be a profitable venture.

The Biman board has even given the go-ahead for the procurement of four Airbus planes, each costing around $180 million, based on the new calculations.

On multiple occasions throughout last year, Bangladesh gave its word that it would buy Airbus planes.

The final memorandum of understanding, which comes with a hefty non-refundable $5 million commitment fee per plane, was hinging on this techno-financial evaluation.

The national carrier would have to undergo an accumulated cash shortfall of up to $463.08 million throughout the lifetime (25 years) of the planes, the previous committee found after studying a proposal for six months.

Five months later, the evaluating committee was reconstituted by the Biman board, and the former head of the committee, Biman's engineering director, was changed. According to the board meeting minutes, the new committee was given three days.

The committee submitted a report on April 25 saying that buying two Airbus planes would be profitable. To achieve this complete U-turn, it based its calculations on a cabin factor that Biman has never been able to achieve -- up to 92 percent.

Cabin factor refers to the percentage of the seats filled on average.

This allowed the second committee to show increased revenue by 20 percent when compared to the evaluation of the previous committee.

In addition, the second committee said the Airbus planes would be profitable on only two routes – one of which is Dhaka to JFK Airport in New York.

To read the rest of the news, please click on the link above.​

 

[Saif]

Biman’s self-sabotage will not just hurt itself

Its U-turn on Airbus purchase decision raises fresh concerns

www.thedailystar.net

Biman's self-sabotage will not just hurt itself
Its U-turn on Airbus purchase decision raises fresh concerns

VISUAL: STAR

Biman's sudden U-turn on whether buying two Airbus A350 planes would be profitable or not seems to be driven by factors other than financial viability. In January, after studying the proposal for six months, the airliner concluded that it would be making massive losses—amounting to an accumulated cash shortfall of up to $463.08 million over 25 years—if it bought the planes. Strangely enough, on April 22, a new appraisal committee took over the evaluation and, in only three days, decided that it would be a profitable venture. To come to this conclusion, the second committee seems to have invented all sorts of unrealistic scenarios, as per a report by this daily.

For example, the committee based its calculations on Biman filling 92 percent of seats on average (which it has never been able to achieve), showing an increased revenue of 20 percent compared to the evaluation of the previous committee. But even then, the second committee could only show the Airbus planes to be profitable on two routes. One of those routes is Dhaka to JFK Airport in New York, which Bangladeshi carriers have not been able to serve since the US Federal Aviation Authority placed the Civil Aviation Authority of Bangladesh (CAAB) in its Category 2, after finding irregularities in its operational activities in 2006.

With that being the case, why would the committee even consider taking this route into its calculations? Another reasoning concocted by the committee is that jet fuel cost—which has historically been volatile, and has risen in recent times—would decrease, adding about a quarter of the increased revenue shown.

There are other glaring illogical assumptions at play here. The committee ignored the very costly spare parts that Biman would have to acquire for the Airbuses, the significant rise in expenditure as a result of operating a mixed fleet, as opposed to a Boeing-based fleet, etc. But even the committee had to admit that all this may require a huge overhaul of its current crew and their responsibilities, and that Biman may have to suspend operations in different routes or reduce frequency in different sectors. As such, why is the carrier still trying to push through with the Airbus purchases? Given Biman's coloured past—of defying operation rules and standards, violating procurement rules, scandals and anomalies in staff hiring, etc.—its motive needs to be investigated.​

 

[Bilal9]

the committee based its calculations on Biman filling 92 percent of seats on average (which it has never been able to achieve), showing an increased revenue of 20 percent compared to the evaluation of the previous committee. But even then, the second committee could only show the Airbus planes to be profitable on two routes. One of those routes is Dhaka to JFK Airport in New York, which Bangladeshi carriers have not been able to serve since the US Federal Aviation Authority placed the Civil Aviation Authority of Bangladesh (CAAB) in its Category 2, after finding irregularities in its operational activities in 2006.

The corruption and irregularities shown are nothing short of shameless. Facepalm.....

I know of the top leadership at Biman well, these people are not fit to run small vehicle repair shops in Dhaka, much less a national airline.

Scummy uneducated nokar class people, every single one of them. I hope that they go bankrupt after the new terminal ground handling job goes to the Japanese. They are not fit to run even ground handling in Dhaka and made a debacle of it in the last fifty years. They need a swift kick in their collective posteriors, a massive reality check....

 

[Saif]

Biman’s frustrating legacy of misadventures

That Biman is a highly corrupt institution that thrives on shameless plundering of public money is no secret.

www.thedailystar.net

Biman's frustrating legacy of misadventures

VISUAL: TEENI AND TUNI

In the country's aviation landscape, Biman Bangladesh Airlines and controversy have now become synonymous. From rampant corruption in every layer of its activities to gross misgovernance permeating all levels of decision-making—with ample evidence presented in various investigative reports—Biman is fully submerged in a stinky cesspool of controversies of various forms, scales and scopes.

Biman's recent decision to proceed with procuring Airbus aircraft, with the a reconstituted evaluation committee turning projected losses into projected profits based on illogical assumptions, has added more flesh to the body of accusations against the national flag carrier over mismanaged deals.

One would remember the 2014 lease of two EgyptAir aircraft for five years, which Biman could only put into use initially for one year, due to engine defects. Not only did it have to take separate engines on lease for Tk 177 crore, it also had to count staggering losses due to keeping them sitting idle. Between 2014 and 2019, Biman had to bear a loss of Tk 1,200 crore, with the expenditure of Tk 3,529 crore surpassing the Tk 2,329 crore revenue that the two aircraft had earned.

It seems Biman is about to make another loss-making venture by procuring the Airbus aeroplanes, as the projected profits are based on unrealistic assumptions, as stated earlier. First of all, to show a 20 percent jump in revenue, the 92 percent passenger cabin factor that Biman projected for these aircraft is inflated. On an average, the passenger load factor or passenger cabin factor of an aircraft is usually around 70 percent, depending on various factors, such as expenditure. Last year, the global passenger load factor was 81 percent.

The second fallacy in Biman's logic for profit is the route suggestion. While the national carrier says that the Airbus aircraft would be profitable in two routes only—the Dhaka-New York route, three times a week, with a stopover in Istanbul; and the Dhaka-Jeddah route with daily flights—Biman has apprently lost sight of the fact that it is not authorised by the US Federal Aviation Authority to fly in the NY route due to the Civil Aviation Authority of Bangladesh's operational irregularities identified in 2006.

Moreover, setting up an Airbus fleet would require Biman to create a completely separate and new supply chain, and logistics arrangement with trained manpower, as the current one caters to a predominantly Boeing fleet. This would involve crores in additional costs.

It has been suggested that this is more of a diplomatic move by the Bangladesh government, which is trying to move away from its dependence on US-made aircraft. Airbus is European-made: France, Germany, the UK and Spain are all involved in its manufacturing value chain, with the final parts assembled in Toulouse, France.

Whatever the reason may be, Biman cannot and should not be used for any other purpose other than ensuring its healthy and sustainable growth and creating a competitive edge for the country's aviation industry in the global marketplace. Biman is not a tool for diplomacy that can be used at the government's whim.

At a time, when the global airliners are rebounding from the economic shock caused by the Covid pandemic, braving headwinds, riding on the back of the booming aviation sector growth (according to the International Air Transport Association (IATA), air travel continued to bounce back in 2023, matching pre-pandemic levels) Biman keeps counting losses. Even in FY2022-23, the company chewed on a loss of Tk 25.91 crore in its main airline business.

To read the rest of the news, please click on the link above.​

 

[Saif]

Bangladesh Biman plans to expand fleet with 32 more aircraft in a decade: CEO

Biman Bangladesh Airlines plans to expand its fleet to 47 aircraft by 2034, adding 32 new planes to enhance its competitiveness in the regional aviation market, says Jahid Islam Bhuiyan, the carrier\'s new managing director and chief executive officer (CEO).

www.newagebd.net

Bangladesh Biman plans to expand fleet with 32 more aircraft in a decade: CEO
Bangladesh Sangbad Sangstha. Dhaka 30 June, 2024, 22:30

Jahid Islam Bhuiyan, managing director of Biman Bangladesh Airlines

Biman Bangladesh Airlines plans to expand its fleet to 47 aircraft by 2034, adding 32 new planes to enhance its competitiveness in the regional aviation market, says Jahid Islam Bhuiyan, the carrier's new managing director and chief executive officer (CEO).

'Biman will have a fleet of 47 aircraft by 2034. In the meantime, six aircraft from the existing 21 will be phased out. Therefore, we need to add 32 new aircraft over the next decade to achieve our expansion plan,' he said.

Bhuiyan revealed the plan during his first media interaction since taking office a month ago at the Biman's headquarters, Balaka, in the capital.

The new CEO explained that the airline will either purchase or lease the new aircraft to meet its target and support the national carrier's route expansion strategy over the next 10 years.

When asked about potential purchases from Airbus or Boeing, Bhuiyan indicated that the airline's needs might require collaboration with the two giant manufacturers.

'Discussions with Airbus have progressed, and a proposal from Boeing is also on the table. Given our high demands, it is likely that a single company will not suffice,' he added.

Regarding Biman's financial performance, Bhuiyan projected earnings of Taka 1,200 crore from cargo alone in the current financial year.

'Overall, Biman will continue to see profits in the future, as it has over the past few years,' he said.

Addressing concerns about ticketing mismanagement by travel agents, Bhuiyan emphasized Biman's commitment to resolving these issues.

'Biman Bangladesh Airlines aims to be 100 per cent free from the problem of unavailable tickets online despite empty seats on flights,' he said.

The CEO reiterated that the national carrier is determined to eliminate the syndicate responsible for making tickets unavailable online despite empty seats.

'We want to resolve the ticketing issues completely to prevent future complications. We have already warned the travel agencies,' he noted.

Recently, Biman sent a letter to all Passenger Service Agents (PSAs), expressing concern over agents undercutting or overpricing tickets through their web portals.

The state-owned carrier urged all agents to adhere to the airline's policies, warning that failure to comply could result in the termination of business relationships.​

 

[Saif]

Purchase of Boeing or Airbus depends on Biman report

Civil Aviation Minister Faruk Khan today said the decision to purchase Boeing or Airbus aircraft will depend on the evaluation committee's report

www.thedailystar.net

Purchase of Boeing or Airbus depends on Biman report

Photo: BSS

Civil Aviation Minister Faruk Khan today said the decision to purchase Boeing or Airbus aircraft will depend on the evaluation committee's report.

The minister made the remarks while talking to reporters following a courtesy meeting with US Ambassador Peter Haas at the secretariat.

Faruk Khan said, "We want to buy new aircraft because we need to expand our fleet. Both Boeing and Airbus are competing in this field and have submitted their proposals to Biman."

He said both proposals are currently being evaluated by a high-powered committee. The assessment is not over yet.

"We will purchase the aircraft from the respective company recommended by the evaluation committee."

The minister said both the companies have made good proposals. After scrutinising the proposal, a decision will be taken based on whichever is beneficial.

Faruk said there was a discussion with the US ambassador about upgrading the Civil Aviation Authority of Bangladesh to Category-1 and resuming the Dhaka-New York flight.

The direct flight connectivity has immense importance for Bangladesh.

The minister said, "We expect a decision in this regard soon."

In response, the US ambassador said they will decide in accordance with international aviation law and Federal Aviation Administration regulations.

While talking to reporters, Haas said they have discussed the friendship, partnership and cooperation between Bangladesh and the US.

"We want to advance the friendship between the two countries. We want to work together in different fields in the future. Various US companies want to increase business cooperation here. US companies are particularly interested in partnering with Bangladesh's growing aviation industry," he said.​

 

[Bilal9]

The programme begins with the training of one Mongolian Airlines pilot on the Dhaka-Sylhet-London route on Friday — Courtesy Photo

Biman Bangladesh Airlines has started providing training to foreign pilots for the first time.

It has ushered in a new horizon in South Asian aviation history by providing line training to foreign pilots on the state-of-the-art Dreamliner 787.

Shafiul Azim, managing director and CEO of Biman Bangladesh Airlines, inaugurated the training programme at the Hazrat Shahjalal International Airport in Dhaka on Friday. Senior officials, trainers and pilots were also present on the occasion.


Biman officials said the programme began with the training of one Mongolian Airlines pilot on the Dhaka-Sylhet-London route. Twelve pilots of Mongolian State Airlines will receive the training on Boeing 787 Dreamliner from Biman Bangladesh Airlines.

In the first batch, three pilots are receiving the described training. And for this, necessary approval has already been taken from the Civil Aviation Authority of Bangladesh (CAAB). Biman became the first among the SAARC countries to train foreign pilots in the state-of-the-art Dreamliner, they said.

Shafiul Azim said Biman Bangladesh Airlines has earned the trust of foreign airlines for its globally acclaimed flight safety standards.

Due to Biman's safety standards and ability to provide standardised training, foreign airlines are increasingly attracted to inflight training, he said, adding that there are plans to expand the scope of training in the future.

 

[Bilal9]

Huge Underpass connecting Dhaka Airport 3rd terminal and airport inter-city train station (which will also house a Metro line terminus in the future). The underpass will include retail and office spaces as well.

 

[Saif]

Huge Underpass connecting Dhaka Airport 3rd terminal and airport inter-city train station (which will also house a Metro line terminus in the future). The underpass will include retail and office spaces as well.

This underpass can be used as a bomb-shelter during war time.

 

[Saif]

Can Biman have a fresh beginning?

Investment in efficient human resources and systems is never wasted and is crucial to achieving efficiency.

www.thedailystar.net

Can Biman have a fresh beginning?

Representational Image/Biman website

Following the July-August mass uprising, almost all service organisations, corporations, administrative bodies, and government offices in the country are experiencing significant changes, reshuffling, and overhauls. Previously stifled voices are now being heard, and we expect a new Bangladesh to emerge from the wreckage left behind by the Awami League government. The extent of embezzlement is staggering. Any honest person who envisions what could have happened if this money had been invested into the economy can't help but feel enraged by the fallen regime.

Towards the end of the regime, Salman F Rahman, the former adviser to the former prime minister on private industry and investment, spearheaded an attempt to purchase 10 new aircraft from Airbus. The intent was brazenly clear: to embezzle funds. That chapter is now closed. It's time to look forward and build a new Biman founded on professionalism, efficiency, transparency, and accountability.

The aviation industry experienced an unprecedented lull during the Covid pandemic, followed by a tremendous boom. Despite this, Biman has underperformed, especially considering it has a relatively young fleet.

In the aviation business, the margin for error is extremely narrow. A single poor decision can lead to total chaos for any airline. An accident can damage an airline's brand image so severely that it may take months to regain passenger confidence. Building a brand is a slow and painstaking process, but it can ensure a return on investment. For effective branding of Biman, key areas require attention.

A major complaint against Biman is its poor "on-time performance". In the recent past, the importance of punctuality has been largely ignored. The airline's vision and mission do not appear to be clearly communicated to its employees and departments. A concerted effort is essential to ensure flights are dispatched on time.

Aircraft serviceability is one of the most important areas for profit maximisation. Aircrafts must be serviceable and in good condition, including in-flight entertainment systems. An aircraft that sits idle is useless unless the airline's operations are so inefficient that it is cheaper to keep aircrafts grounded.

Another issue that needs focus is efficiency, which is essential in every aspect of the airline, from marketing and sales to dispatch, engineering, maintenance, pilots, and cabin crew. Investment in efficient human resources and systems is never wasted and is crucial to achieving efficiency. As such, it is essential to emphasise proper recruitment and training, especially of managers.

A positive work environment is critical. Disengaged employees can cause significant losses. Responsibility and ownership are key contributors to an airline's brand image and efficiency. We need empathetic, knowledgeable managers. Certain problematic individuals must be removed from sensitive positions immediately.

Modern aircraft have the unique ability to communicate their health status to engineers, even mid-flight. However, we often fail to take advantage of this technology due to inadequate spare parts provisioning. Delaying repairs because of cost-cutting can be disastrous. Aircraft should not be left idle for days due to a lack of necessary parts. The prospect of providing maintenance to more foreign carriers may be explored to expand the spares pool.

Many of our international flights include short segments, such as Dhaka-Sylhet or Dhaka-Chattogram, before proceeding to the ultimate destination, which highly increases operating expenses. These short flights waste valuable engine, landing gear and auxiliary power unit (APU) cycles. A better strategy would be to operate point-to-point international routes, like Dhaka to Dubai, Dubai to Chattogram, then Chattogram to Jeddah and so on. This would not only avoid unproductive short sectors but also save on engine, landing gear, and APU cycles. The short-sector flights are choking off domestic operators. The national carrier should not monopolise the market at the expense of underperformance.

Crew shortages should not hinder expansion or planning. Recruitment should be regular and recruitment numbers should be manageable within a set timeframe. Currently, because of crew shortage, and the reluctance of crew to stay over in Sylhet and Chattogram, direct flights from these cities cannot be operated. Inadequate crew numbers do not allow crew to take time off to attend to personal matters. Aspiring young pilots should be given the opportunity to join Biman, and current pilots who meet the requirements should be promoted in due time.

Biman is a relatively small airline with few airplanes. So, it is very important to take advantage of any opportunity to optimise operations that come our way. For instance, the decision to procure Boeing 787s, despite their delayed delivery, was influenced by the ability of pilots to fly both Boeing 787s and 777s simultaneously. However, when the 787s arrived, the crew for both aircraft types were segregated, causing problems in planning issues and crew dissatisfaction. There are also issues with aircraft allocation in different routes that should be revisited.

Biman must immediately focus on future fleet planning based on pragmatic business solutions and operational needs. Failing to plan ahead will lead to major operational problems. We are already in a stage where aircraft shortage is inevitable.

Another area is communicating delays. We often see passengers getting agitated at the holding area because of a lack of information regarding delays. Passengers readily accept a delay of less than 30 minutes or even more if they are updated about it along with the reasons. Biman traffic personnel needs training on providing updated delay messages to passengers without exception. Any delay of more than 15 minutes must be communicated to the passengers.

Lastly, sufficient executive power must be granted to the managing director and chief executive officer to hold them accountable for decisions. In recent years, the board and its subcommittees made almost all decisions, leaving central management unaccountable. This led to unnecessary delays, and in some cases, decisions were rendered ineffective by the time they were made.

Proper brainstorming will bring forth many more steps that can be taken for the advancement of Biman and improve its brand image.

Captain A M Maqsood Ahmed is captain of Boeing 777 with Bangladesh Biman and a former member of the fleet planning committee, that did the groundwork for the purchase of 10 new generation Boeing aircraft.​