Although Biman is yet to climb out of years of suffering losses, the national flag carrier is expected to reduce its annual losses by 38.86% from the previous year as a result of improved punctuality and enhanced customer service.
Officials at the Biman Bangladesh Airlines said the carrier would be able to overcome the massive losses suffered during the months of political unrest ahead of January’s parliamentary polls, and end the fiscal year with an estimated loss of Tk118 crore, much lower than the previous fiscal losses of Tk193 crore.
Claiming that the national flag carrier was offering better services than ever before, Biman officials however added that the airlines was suffering major setbacks because of declining traffic of Middle East-bound labourers and expatriate passengers.
“In spite of all the problems with political unrest and losses in November and December 2013, Biman still expects to make its [improved] loss target for 2013-14, and be fully profitable in 2014-15,” Biman’s Managing Director Kevin Steele told the Dhaka Tribune recently.
He credited the upward trends to the successes achieved in “punctuality and customer services and product enhancements.”
Meanwhile, statistics show that the national flag carrier experienced an 18.49% drop in passenger numbers and 18.59% losses in gross revenue during the first eight months (July-February) of the ongoing fiscal, compared to the same period of the previous fiscal year.
During July 2013-February 2014, Biman’s total revenue from passengers stood at Tk1,858 crore, which was 71.12% of its targeted earning for those eight months, compared to Tk2,282 crore revenue from the same period of the previous fiscal year.
Biman officials said the arrival of two brand new Boeing 777 aircraft in the past two months had helped the airlines slash its losses.
Biman’s MD Kevin Steele said the airlines’ board of directors had estimated its annual losses at Tk118 crore (around $15m).
Although Biman’s fiscal budget had estimated losses worth Tk156 crore for the July 2013-February 2014 period, the airlines suffered losses of Tk148 crore during the eight months.
Biman had suffered around $10m worth of losses during the political unrest of November and December last year, Steele added.
As the March-June period usually brings in profits for Biman, the airlines officials said the losses for the entire fiscal year were expected to come down to Tk118 crore.
Steele said they were confident in achieving the reduced loss target, as Biman was currently offering much improved services, especially in business class.
Mohammad Sha Newaz, Biman’s director for marketing and sales, said: “Movement from Bangladesh and inbound traffic declined massively for political unrest, and it affected our business.”
Biman had only a handful of business class passengers, with labourers and non-resident Bangladeshis making up most of the passengers, Sha Newaz said, adding that the trends were expected to change as the carrier acquired four brand new Boeing 777 aircraft during the last two years.
Earlier last week, Prime Minister Sheikh Hasina stressed on the need for profitability in order to ensure the survival of the national flag carrier.
Over the past seven years, Biman faced its biggest loss of Tk606 crore in 2011-12, while the last time it saw profits was in 2008-09.
