Biman plans major fleet expansion

Bangladesh is seeking to strengthen its position in the aviation industry by expanding the national carrier’s fleet, increasing its share of the country’s growing air travel market and reducing dependence on foreign airlines.

As part of the strategy, Biman Bangladesh Airlines is negotiating to purchase 10 Airbus aircraft while moving ahead with a major Boeing procurement plan, aiming to develop a sustainable mixed fleet to serve international, regional and domestic routes.

The proposed Airbus purchase comprises four A350-900 wide-body aircraft and six A321neo narrow-body jets, Civil Aviation and Tourism Minister M Rashiduzzaman Millat said today.

“We are working to build a sustainable mixed fleet,” he said, adding that there was “no geopolitical influence” behind the aircraft purchases.

The proposed Airbus deal comes after Biman signed a supplementary agreement with Boeing in New York on September 23 to purchase 11 additional aircraft, comprising five 787-10 wide-body jets and six 737-8 MAX narrow-body planes.

The agreement followed an April 30 contract to purchase 14 Boeing aircraft and was signed under a provision allowing Biman to acquire additional planes.

Millat said the additional 11 aircraft would be purchased at the same prices agreed under the April 30 contract.

With the latest agreement, Biman has contracted to purchase 25 Boeing aircraft, including two 787-9s, 13 787-10s and 10 737-8 MAX jets. Of the total, 15 are wide-body and 10 are narrow-body aircraft.

The first aircraft is scheduled for delivery in November 2031, with the final one expected by 2035. The government, however, has asked Boeing to deliver at least one aircraft by 2027-28, the minister said.

Millat said the decision on the number and types of wide- and narrow-body aircraft was based on Biman’s network and fleet planning, considering aircraft range, seating capacity, projected passenger numbers on individual routes and weekly flight frequencies.

The wide-body aircraft would primarily operate on high-demand Middle Eastern routes, alongside long-haul services to Europe and North America.

The narrow-body jets would serve regional and short-haul destinations and eventually replace Biman’s ageing 737-800 aircraft, he said.

Explaining the rationale for expanding the fleet, Millat said the government was following the Ethiopian Airlines model to increase the national carrier’s operational capacity and market presence.

“Ethiopian Airlines has grown from a small legacy carrier to an airline with 167 aircraft, while our national carrier has only 19,” he said.

Bangladesh’s gross domestic product is higher than Ethiopia’s, and passenger demand at its airports is also greater, he said, arguing that the country’s aviation market offered considerable scope for expansion.

According to the minister, Biman currently carries only slightly more than 20 per cent of the country’s total air passenger demand, while foreign airlines handle the remaining 80 per cent.

The government considers the aircraft procurement plan a timely initiative to address Biman’s fleet shortage and enable the national carrier to capture a larger share of the market, he said.

On financing, Millat said Biman, as a public limited company, would meet the cost of the aircraft from its own earnings and through appropriate financing arrangements.

As deliveries would take place in phases, payments would also be spread over time, he added.

The procurement plan was drawn up after assessing Biman’s financial capacity, revenue from its existing routes and projections for future growth.

“Therefore, there will be no direct pressure on the budget,” Millat said.