The deal between Biman Bangladesh Airlines and Airbus will pave the way for Bangladesh's national carrier to improve its capacity to transport cargo.
Bangladesh on Friday signed a partnership agreement with the UK regarding the acquisition of passenger and cargo aircraft from the Airbus company to bolster cooperation in the aviation sector.As part of the deal, Bangladesh will get long-term loan facilities on soft terms under the UK export finance scheme to purchase aircraft.
Initially, two cargo aircraft are likely to be purchased from Airbus, according to government sources.
Salman F Rahman, adviser to Prime Minister Sheikh Hasina on Private Industry and Investment, and Lord Dominic Johnson of Lainston CBE, UK minister of State, Department for Business and Trade, signed the Memorandum of Understanding on the deal on behalf of their respective sides.
Prime Minister Sheikh Hasina's Principal Secretary Mohammad Tofazzel Hossain Miah and Bangladesh-born UK MP Rushanara Ali were also present at the signing ceremony.
“This deal demonstrates the UK's commitment to strengthening Bangladesh's aviation industry, in turn helping to create jobs in both countries,” Lord Dominic Johnson shared on social media.
Salman F Rahman said the deal would pave the way for a long term and effective relationship between Airbus and Biman Bangladesh Airlines.
Biman to form Technical committee
Last year, Rushanara Ali visited the Ministry of Civil Aviation and Tourism in Bangladesh and spoke in favour of a deal between Biman and Airbus.
The same year, representatives of Airbus arranged a showcase of the new Airbus A350 aircraft at Hazrat Shahjalal International Airport (HSIA) in Dhaka.
Later, Biman's former Managing director and CEO Abu Saleh Mostafa Kamal directed the formation of a technical committee over the deal with Airbus and issued a notice in this regard on May 16, 2022.
Former Biman Administration & HR Director Zahid Hossain was the convenor of the committee. The committee was supposed to submit its report within three working days after surveying the feasibility of adding new aircraft to the Biman fleet from the Airbus company.
The committee's terms of reference included determining which types of aircraft would be compatible with the Biman fleet, whether additions from Airbus would be profitable, on which routes the aircraft would be commercially viable, and challenges to aircraft maintenance.
However, due to various reasons, the committee could not finish the work.
Current Biman Managing Director and CEO Shafiul Azim said Biman would form a new technical committee after the signing of an MoU with the Airbus authorities.
Industry insiders urged Biman to check whether more cargo aircraft needed to be added to its fleet.
They also pointed to the increase in cost as the new aircraft will need to be maintained.
However, sources at Airbus said they would provide maintenance support.
They also said Bangladesh's aviation sector is growing at an exceptionally fast rate, so it is natural for Biman to increase its capacity.
Biman currently has 21 aircraft in its fleet, including 16 from Boeing.
The estimated cost of purchasing two additional cargo aircraft is around Tk4,000 crore, but Airbus has offered Biman half the current market price.
Biman purchased three AC Airbus aircraft in 1991, but the company has not made another purchase from the company since it ordered 10 Boeings in 2006-2007.
According to an aviation specialist, Boeing clearly controls the widebody aviation industry in South Asia, based on the current structure of airline fleets in the region.
