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[🇧🇩] Aviation Industry in Bangladesh

[🇧🇩] Aviation Industry in Bangladesh
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Biman’s fleet: Deals on 21 Boeing, Airbus planes likely within weeks

Mohammad Jamil Khan

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Biman is preparing to sign deals for 21 more Boeing and Airbus aircraft within weeks, taking its unfulfilled orders to 35 aircraft.

The national flag carrier currently has 19 planes.

Sources familiar with the process told The Daily Star that an agreement on 11 Boeing aircraft is expected during the UN General Assembly, followed by a deal on 10 jets with Airbus next month.

Details of the Boeing aircraft, their variants, value, financing structure, and delivery schedule have yet to be publicly disclosed.

The proposed Airbus package comprises four A350-900s and six A321neos, sources said.

The purchases would come on top of a $3.7 billion agreement signed in April for 14 Boeing aircraft: eight 787-10s, two 787-9s and four 737 MAX-8s, with deliveries scheduled to run from November 2031 to October 2035.

State Minister for Foreign Affairs Humaiun Kobir said at a programme in Dhaka on September 12 that Bangladesh needed to expand its aircraft fleet to support new routes and networks.

Any decision to buy Boeing or Airbus aircraft, he said, was “all business of Bangladesh, nobody else’s”.

Against this backdrop, European Union Ambassador Michael Miller last week urged the government to ensure a level playing field in Biman’s procurement process, saying such decisions should be made “on the basis of commercial merit.”

The proposed Airbus purchase came up again yesterday when British High Commissioner Sarah Cooke met Civil Aviation and Tourism Minister M Rashiduzzaman Millat at his Secretariat office.

According to a ministry press release, Millat said Biman was facing an aircraft shortage and that steps were being taken to add aircraft urgently.

He said any procurement would be carried out transparently, based on recommendations from the High-Level Negotiation Committee.

Biman currently operates 19 aircraft, including five turboprops, four 777s, four 787-8s, two 787-9s, and four 737-800s. If the deals go through, it will be the largest fleet expansion in Biman’s history.

Biman has not released a consolidated business case explaining how a mixed fleet and new planes would be used and when the old ones would be retired.

AIRBUS DEAL

Biman had earlier signalled readiness to conclude the Airbus agreement by August 31, according to sources familiar with the process. After that deadline passed without a signing, officials said the deal is now likely in October.

Millat at a programme in Mymensingh on August 31 said that Bangladesh would buy aircraft from France, England, and Germany, where sections of Airbus aircraft are made.

A source familiar with the process said Bangladesh bought Boeings at list prices, while Airbus had offered discounts.

The source said Airbus would begin the delivery process soon after the agreement is signed, with 85 percent of the purchase cost covered through financing from the UK, Germany, and France.

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Interest rates would be disclosed only after the agreement is signed, sources said.

Airbus has also proposed a package covering maintenance, repair and overhaul (MRO), as well as pilot and cabin crew training, fleet planning, and cabin design, another source said.

BOEING DEAL

The potential order of 11 Boeing planes came to the fore on August 30, when US Special Envoy for South and Central Asian Affairs and Ambassador to India Sergio Gor said on X that President Donald Trump and Prime Minister Tarique Rahman had made “another incredible deal”.

Trump later shared the announcement and wrote to Tarique, expressing appreciation for the “decision to purchase.”

On September 1, Humaiun Kobir said Bangladesh faced no pressure from the US to buy Boeing aircraft, adding that the fleet expansion was based on the needs of the aviation sector.

CARGO HANDLING

The Cooke-Millat meeting also covered aviation security and airport operations.

Millat sought steps towards withdrawing the European Union’s High Risk Cargo & Mail (HRCM) status, imposed on Bangladesh in 2017, saying it had increased the time and cost of shipping. He said the government had taken initiatives to have the status withdrawn and was moving to install Explosive Detection Systems (EDS) at airports. The minister said Hazrat Shahjalal International Airport and Sylhet Osmani International Airport had received satisfactory ratings in a recently completed audit and that the government now wants the EU to withdraw the HRCM status.

Cooke said the UK was ready to cooperate with Bangladesh in its efforts to establish an aviation hub.

The meeting also discussed Menzies Aviation’s interest in working with Biman on ground handling at the third terminal.

Sources familiar with the process said the UK-based company wants to handle cargo there and that the proposed operation could create around 1,000 jobs locally.

They said Menzies is seeking government approval.

The third terminal is set to be operated by a Japanese consortium led by Sumitomo Corporation, which the Civil Aviation Authority of Bangladesh said will have the prerogative to select a second ground-handling operator alongside Biman.

Sources said proposals from interested firms, including Menzies, would therefore be assessed through that selection process.​
 
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Biman set to sign deal for 11 more Boeing aircraft in NY

National flag carrier's Boeing purchases to rise to 25 aircraft

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Focus Bangla file photo

Bangladesh Biman Airlines is set to sign a supplementary agreement with US aerospace giant Boeing in New York tomorrow (Wednesday) to purchase 11 more aircraft, taking its planned Boeing fleet expansion to 25 aircraft.

Biman Chairman Rumee A Hossain will sign the agreement on behalf of the national flag carrier, sources told the FE. The name of Boeing's representative who will sign the deal could not be known immediately.

The Biman chairman, who is part of the prime minister's entourage for the UN General Assembly, will sign the agreement at a hotel on the sidelines of the UNGA, according to sources.

Details of the models, prices, financing arrangements and delivery schedule for the additional 11 aircraft were not immediately available.

Biman earlier signed an agreement with Boeing on April 30 to purchase 14 aircraft for about $3.7 billion, with deliveries expected to begin in 2031. Sources said the government expressed interest in purchasing 11 additional aircraft after the initial agreement was signed.

The first package comprises eight Boeing 787-10s, two 787-9s and four 737 MAX 8s.

The national flag carrier has been pursuing a fleet expansion programme involving both Boeing and Airbus since the new government took office.

A technical committee is working on a proposal to purchase 10 Airbus aircraft, according to sources. The proposed Airbus package comprises four A350-900s and six A321neos.​
 
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How many aircraft of each Boeing model is Bangladesh buying?​

More than Tk 700 billion will be paid for 25 aircraft under two orders signed five months apart​

How many aircraft of each Boeing model is Bangladesh buying?
bdnews24.com News Service
Published : 25 Sep 2026, 01:28 AM
Updated : 25 Sep 2026, 01:28 AM



Biman Bangladesh Airlines is set to buy 25 Boeing aircraft under two purchase agreements signed five months apart, with the orders covering three variants of two aircraft models, the US manufacturer said.

At an event held on the sidelines of the UN General Assembly in New York on Wednesday, Biman announced an agreement to buy 11 more Boeing aircraft.

Boeing India and South Asia Communications said the new order comprises five 787-10 Dreamliners and six 737-8 Max aircraft.

Biman had signed an earlier agreement with Boeing in Dhaka on Apr 30 to buy 14 aircraft.

That order includes eight 787-10 Dreamliners, two 787-9 Dreamliners and four 737-8 Max aircraft.

Boeing will deliver the 14 aircraft from the earlier order in phases between 2031 and 2035.

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The deal is worth $3.7 billion, or about Tk 454.08 billion, based on an exchange rate of Tk 122.73 to the dollar.

The price and delivery schedule for the 11 aircraft under the new agreement have not been disclosed.

Based on Boeing's previous list prices, the new order could be worth about $2.4 billion, or roughly Tk 294 billion.

Boeing said adding 787 Dreamliners and 737 Max aircraft would strengthen Biman's existing Boeing fleet and allow greater operational commonality between its aircraft.

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The manufacturer said the new aircraft would be 20-25 percent more fuel-efficient than earlier models.

The narrow-body Max is suited to passenger services on short- and medium-haul routes, while the wide-body Dreamliner will allow Biman to carry more passengers.

According to Biman's website, the airline currently has 19 aircraft, including 14 Boeing aircraft and five short-haul Dash 8 Q400s.

Biman first signed a deal with Boeing to buy 10 aircraft in 2008 under Bangladesh's caretaker government. Boeing later delivered the aircraft between 2011 and 2019, during the Awami League government.

After the latest agreement, US President Donald Trump posted on Truth Social under the headline "BIG DAY FOR BOEING AND AMERICAN MANUFACTURING!"

He congratulated Boeing and its employees.
 
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Biman's dream fleet of 100 planes!


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The Biman Bangladesh Airlines' ambition to ultimately build a fleet of around 100 aircraft may sound like the natural dream of a national flag carrier of a populous country with a large expatriate community. But an airline does not become globally competitive simply because more aircraft are parked on its apron. The latest agreement for 11 additional Boeing jets has taken Biman's Boeing order book this year to 25 aircraft, while negotiations are continuing over another 10 Airbus planes. Biman at present operates 19 aircraft, according to recent reports. So, the scale of the proposed expansion is indeed unprecedented.

But does Biman's basic business challenge lie in shortage of aircraft alone? In truth, it does not. An aircraft is merely the most visible part of an airline business. Behind every plane flying profitably lies a complex system of route planning, ticket pricing, marketing, crew management, maintenance, ground handling, baggage delivery, customer care, digital reservation, airport slots and, above all, professional management. If those parts do not work efficiently, adding aircraft may only multiply the existing inefficiencies. That is why some aviation experts raised the basic question as to whether routes and demand had first been assessed before the aircraft were ordered.

Normally, a commercial airline first decides where it wants to fly, how much traffic those routes can sustainably generate, what fares the market can bear and what competition it will face. Only then does it determine the number and type of aircraft necessary. It appears, at least from what has so far been made public, Biman is doing the exercise partly in reverse. No consolidated business case has yet been publicly released showing how the incoming fleet will be deployed, when the older aircraft will be retired and how each proposed route will make money.

To be fair, Biman is no longer the perennial loss-making entity that it once was. In FY2024-25, it reported record revenue of Tk11,559 crore and a net profit of Tk785.21 crore, marking its fifth consecutive profitable year. That is definitely encouraging. But the latest 11 Boeing jets alone were valued at about US$2.42 billion at 2023 catalogue prices, though actual negotiated prices and financing arrangements have not been disclosed. The earlier order placed last April for 14 Boeing aircraft was worth about US$3.7 billion. Evidently, the financial magnitude of the expansion bears little comparison with Biman's present annual profit.

This is why the question of who will ultimately shoulder the financial risk cannot be brushed aside. Since Biman is a fully state-owned company, any major procurement undertaken without a watertight commercial case may finally become a liability of the public exchequer. A national airline has strategic importance and governments everywhere may support their flag carriers in special circumstances. But support cannot become a substitute for commercial discipline. Expansion should increasingly be financed by Biman's own earnings, retained profits, commercially sustainable borrowing and cash flows generated by viable routes-not simply by the taxpayers because an aircraft purchase happens to serve some diplomatic or political purpose.

The timing of the Boeing deals has naturally invited questions because Bangladesh's aircraft purchases have also figured in discussions surrounding trade relations with the United States. Government representatives have said there was no US pressure and that the purchases were based on aviation needs. Whatever the diplomatic context, the test for Biman should remain strictly commercial. The considerations should concern if the aircraft earn more over its economic life than it costs to acquire, finance, crew, maintain and operate.

Here lies the still larger issue of management. Biman's weaknesses arising from bureaucratic control, political interference and irregularities are hardly new discoveries. A Transparency International Bangladesh diagnostic study identified political influence, corruption risks in aircraft purchase and leasing, weak planning and poor passenger service among its governance problems. An Anti-Corruption Commission enquiry later identified corruption-prone areas in Biman. More recently, internal investigations reported serious weaknesses in revenue collection and contract management in Covid-era cargo operations involving hundreds of crores of taka.

Then there is the passenger, whose experience should finally determine the worth of an airline. Biman has frequently faced complaints over delayed baggage delivery and ground handling, while the government itself this year ordered stronger action against luggage theft, passenger harassment and weaknesses in ticket sales. A new aircraft with a gleaming cabin does not compensate a passenger for an avoidable delay, mishandled luggage, poor communication or indifferent service at the counter. Airlines sell confidence as much as they sell seats.

Moreover, if the proposed Airbus purchase goes ahead alongside the large Boeing acquisition, Biman will operate a more complex mixed fleet. Such diversification may have advantages, including negotiating leverage and aircraft types suited to different routes. But it also means separate pilot training, engineering expertise, spare-parts inventories, maintenance arrangements and possibly additional simulator and certification requirements. For a carrier already grappling with management and manpower limitations, complexity has a cost.

So, before dreaming of a 100-aircraft fleet, Biman needs first to put its management, operational model and quality of passenger service on a sound commercial footing. Otherwise, it would amount to putting the cart before the horse. The government should consider engaging an internationally reputed aviation management consultancy, not merely to prepare another glossy report, but to redesign Biman's operating model from route economics and fleet planning to human resources, procurement, maintenance, customer service and digital revenue management.

Such restructuring should be followed by measurable targets: aircraft utilisation, on-time performance, load factor, yield, baggage-delivery time, unit cost, route-wise profit and passenger satisfaction. Management should then be given professional autonomy to meet those targets and held accountable for failure. Ministers and bureaucrats should set broad policy, but day-to-day airline decisions are best left to aviation professionals.

Once that foundation is laid, fleet and route expansion can proceed step by step. New aircraft should follow proven demand, not precede it. Profitable regional and Middle Eastern routes can be strengthened first. The long-haul destinations should be added only after rigorous market tests and partnership arrangements are secured. A 100-aircraft Biman may well be possible one day. But the real ambition should not be to own 100 aircraft. It should be to build an airline capable of operating every aircraft profitably, efficiently and with a standard of service that makes passengers choose Biman even when they have other options.​
 
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