Biman Bangladesh Airlines incurred net losses of over Tk210 crore in the last fiscal year.
This was nearly twice as high as management had been predicting. Reported losses in the last four years alone total over Tk1,220 crore.
These figures underplay the true costs to the taxpayer of subsidising the state-owned airline, as they do not account for debts accumulated over the years, or for future borrowing that may be required to maintain cash flow, as more suppliers demand advance cash payments for services.
Efforts to improve reliability and service levels and major investments in new aircraft are clearly not delivering any meaningful increase in income or profitability. That this comes at a time when there is an annual growth rate of 8% in demand for air travel in the country, tells its own story about Biman’s inefficiencies.
It is high time the government acted on the logic of turning Biman into a public limited company. It should move towards full privatisation to root out the obstacles and interference which plague Biman.
With many better-funded airlines providing services, both internally and internationally, passengers will not be affected and may even gain, if private management is able to turn the airline around.
Taxpayers’ money can be better spent on training more flight engineers and pilots within the country and improving safety and infrastructure.
Government funds should focus on ensuring first rate airport hubs out of which well managed airlines can operate, rather than perennially propping up Biman’s losses.
