[🇧🇩] Aviation Industry in Bangladesh

[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.