Biman Bangladesh Airlines is going from bad to worse.
Its flights to Frankfurt this year have been incurring losses of Tk70 lakh each, with one flight carrying just seven passengers out of a capacity of 419 for a Boeing 777.
Having now decided to cancel this route, which had been added without a proper market survey, its managing director is planning to start new services across Asia, without any concrete evidence that any of them will be more viable.
This should be seen as the last straw. Biman has repeatedly shown that its management is incapable of reining its heavy losses. We do not see any justification for the government continuing to keep the state airline alive with endless subsidies. Biman has repeatedly shown it cannot compete and that its management cannot make a positive difference.
Passengers in the country are well-served by better run private and international airlines providing services both internally and internationally. With airline demand rising at 8% a year, passengers are benefiting from increasing completion and investment by these other airlines.
No added benefit is provided to passengers or the country by wasting taxpayer funds on propping up Biman.
Government funds should focus on ensuring first rate airport hubs, out of which well-managed airlines can operate, rather than propping up Biman’s losses, which have been over Tk1,220cr in the last four years alone, even before taking account of accumulated debts.
Taxpayer money will be better spent on training more flight engineers and pilots within the country and improving safety and infrastructure.