Aviation prospects abound, but fleet proportionately undersized

Bangladesh's state-run airline feels incapacitated to increase flight frequencies and fly to potentially profitable new international destinations, belying rising passenger demand and revenue growth, sources say.

Biman Bangladesh Airlines is caught in such a paradox because the national airline has received no response from international lessors despite issuing tenders multiple times in recent years.

On the other hand, the aviation authorities have also failed to finalize any plane-purchase order with aircraft manufacturers over the past five years.

"We attempted three to four times over the past few years to lease aircraft but received no response from the lessors," Boshra Islam, Biman's spokesperson, told The Financial Express.

However, she could not specify the exact reason for the lack of response from the prospective lease-givers.

Kazi Wahidul Alam, a former board member of Biman and aviation expert, says the core problem lies in the airline's inability to act swiftly under government procurement rules, at a time when global aircraft supply is tight and leasing decisions are often made within days.

He suggests holding direct negotiations with the lessors, bypassing the lengthy government tender process to achieve immediate results.

The national carrier's fleet has now just 19 aircraft, after returning two leased planes last year when their contracts expired. Of these, four are Boeing 777-300 ER, four Boeing 787-8, two Boeing 787-9, four Boeing 737 and five Dash 8-400 aircraft.

Biman currently operates flights to 22 international destinations and plans to expand its network to Male, Jakarta, Colombo, and Sydney-all considered potential profitable international routes.

Sources say two Dash-8 aircraft manufactured in Canada joined the Biman fleet as its latest purchases in February and March 2021. Since then, Biman authorities have been unable to expand the fleet for inordinate indecision as to whether to purchase aircraft from Europe or the United States. In the face of a surge in international air travels and increasing competition from foreign airlines, Biman unveiled an ambitious decade-long plan in March 2024 that includes the purchase of at least 26 new aircraft and expansion of its route network.

Despite adopting such ambitious plan, the authorities couldn't make any firm decision or place orders with any manufacturer for a long time, even as two aviation giants -- Europe's Airbus and the US-based Boeing, repeatedly submitted their proposals.

However, finally the Biman Board of Directors, in a meeting held on December 30 last, took an "in-principle" decision to purchase 14 aircraft from Boeing.

Under the previous Awami League government, a policy decision had been announced to purchase 10 Airbus aircraft. However, that plan shifted dramatically after the fall of the Sheikh Hasina government in a mass uprising.

Amid changing political dynamics and mounting pressure linked to US President Donald Trump's tariff policies, the proposed aircraft order has now swung in Boeing's way.

Boshra Islam said Biman would have to wait seven long years, until November 2031, to receive the first Boeing delivery.

Consequently, an immediate solution to the aircraft crisis remains a far cry, and it is already affecting operations.

Biman has suspended flights on Dhaka-Sylhet-Manchester route from March 1 this year to free up aircraft for transporting Hajj pilgrims starting next April.

Biman follows the way every year, during Hajj season.

The airline's announcement on the launch of services on the Dhaka-Karachi route from January 29 this year under a bilateral agreement may deepen the aircraft crisis.

Biman Bangladesh Airlines resumed flights to Japan's Narita in September 2023. After 21 months of restarting the much-anticipated Dhaka-Narita service, Biman last May announced the suspension of operations on this route, effective from July 1 in 2025.

The national flag-carrier management says the decision was based on three factors- the hajj operations, shortage of aircraft in its fleet, and financial viability of the route. However, insiders have said the airline was compelled to take the decision as it has been incurring heavy losses since resuming the service.

The airline had planned to launch direct flight from Dhaka to New York in the United States. However, reports say, it has been unable to do so due to the lower quality of Hazrat Shahjalal International Airport (HSIA) in Dhaka.

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