Bangladesh’s aviation sector is getting a big boost amidst multiple homegrown airlines’ rapid acquisition of several dozens of airplanes.
In a largest single fleet expansion ever undertaken by a private airline in Bangladesh, the US-Bangla Airlines on Tuesday made formal announcement of adding 21 Boeing aircraft under a leasing arrangement worth $1.5 billion by year end 2027.
The expansion includes 15 Boeing 737-8 aircraft and six Boeing 737-800 aircraft.
Just three months ago, national carrier Biman Bangladesh Airlines signed a massive direct purchase agreement with Boeing to buy 14 brand-new aircraft (including eight Boeing 787-10s, two wide-body variants, and four 737-8 MAX jets) valued at $3.7 billion.
Biman is also in the process of signing a multi-billion dollar agreement by next month to purchase 10 aircraft from European manufacturer Airbus.
Together all these inductions come as the largest fleet expansions in the history of the country's aviation industry.
Industry insiders told Dhaka Tribune that Bangladeshi airline companies expanding fleets at a time when yearly air passenger volume is expected to increase to 24 million once the 3rd terminal of Dhaka’s international airport is made operational.
Up until now Bangladeshi carriers cater to only 30 percent of air passengers thereby, leaving an overwhelming 70% to foreign operators.
US-Bangla and Biman’s current fleet expansion moves could be a game changer.
US-Bangla officials said over the past 12 years that they’re into the market the airlines managed to operate in 21 domestic and international routes having a fleet size of 25 planes. If all 21 Boeings are delivered to US-Bangla by end-2027, its fleet size would expand to 46.
Several years after completion of the 3rd terminal, no government officials, however, could confirm yet when the authorities are going to open it for air travels.
US-Bangla made the Boeing deal official through an even titled – "Beyond with Boeing" – held at a city hotel yesterday. Civil Aviation and Tourism State Minister Rashiduzzaman Millat, the Prime Minister’s Foreign Affairs Adviser Humayun Kabir, the United States Ambassador to Bangladesh Brent T Christensen, Civil Aviation Authority Chairman, Air Vice Marshal Md Mostafa Mahmood Siddiq, Managing Director of US-Bangla Airlines, Mohammed Abdullah Al-Mamun, Boeing representatives and aviation stakeholders attended the program.
Mohammad Abdullah Al Mamun said the investment represents more than fleet expansion. He said: "It reflects our long-term vision to transform US-Bangla from an airline into a fully integrated global aviation group."
US Bangla MD said the company would invest not only in aircraft but also in training, technology, maintenance, catering, cargo, and aviationinfrastructure to support the sustainable growth of Bangladesh's aviation sector.
Launched in 2014, US-Bangla Airlines is Bangladesh's largest private carrier, operating domestic and international passenger services with the long-term goal of becoming a globally competitive aviation group spanning passenger transport, cargo, maintenance, training and aviationsupport services.