Biman Bangladesh eyes Airbus for fleet expansion amid competitive bidding

Biman Bangladesh Airlines considering Airbus for fleet expansion

Bangladesh’s government and national airline, Biman Bangladesh Airlines, are inclined to choose Airbus over Boeing for their upcoming aircraft acquisition. However, they have not finalized any decisions yet.

During a press conference in Dhaka on May 7, Civil Aviation and Tourism Minister Muhammad Farooq Khan mentioned, “At present, we intend to purchase ten Airbus aircraft.” He added, “Airbus has extended a very attractive proposal to us. Boeing has also presented a competitive offer. We are assessing these proposals to determine what best serves Bangladesh’s interests.”

In May 2023, Biman Bangladesh secured financing for acquiring ten Airbus aircraft under favorable conditions through a joint statement with the United Kingdom. This arrangement allows them to access funds via the UK Export Finance scheme, targeting the procurement of eight passengers and two cargo aircraft. Ministry officials, preferring anonymity, informed local media that Airbus was proposing approximately half of the standard list prices. Nevertheless, Boeing remained a contender by offering competitive terms for their B787s, keeping their options open until a final decision.

While reports have hinted at a potential Airbus order, no definitive decision has been made. Minister Khan has indicated that the evaluation process will conclude within the next two months, aligning with the upcoming national budget announcements. This timeline provides stakeholders and the public with a clear expectation of when they can anticipate further updates on Biman Bangladesh’s fleet expansion plans.

On a positive note, Biman Bangladesh announced on May 9 that it had achieved a significant financial milestone. The airline has successfully repaid USD1.57 billion from a USD2.07 billion loan obtained in 2011 for the purchase of new aircraft. This repayment signifies the airline’s growing financial independence, as it is now generating sufficient revenue to manage its loan repayments without relying on government aid. The revenue is not only covering the principal but also the interest. Furthermore, the airline has also repaid a government-provided loan of BDT7.88 billion taka (approximately USD67.3 million), which was extended during the pandemic.

References

  • ” Biman Bangladesh eyes Airbus for fleet expansion amid competitive bidding“, Ch-Aviation News. Read more