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Download PDF Biman Bangladesh Airlines Ltd, plagued with an acute shortage of aircraft and consequent disarray in flight schedule, is now taking some urgent steps to improve the situation by acquiring three aircraft on lease and putting two under repair into service within this month.
“Of the three aircraft, one is likely to land in Dhaka within a few days and two are in the process of being leased,” said Dr MA Momen, chief executive officer (CEO) and managing director (MD) of the national flag carrier.
“In order to be on time in operation, we have put in efforts to fly two DC-10s, now in hanger (for repair), in October,” he said.
In an interview with The Daily Star, Momen sounded optimistic in saying that the urgent measures now underway would put Biman on a better footing from November. And the problems with flight schedule will be over soon, he said.
Admitting that Biman, newly turned into a public limited company (PLC), is facing manifold crises, Momen said it is now struggling hard to come out of this situation.
Asked about expatriate Bangladeshi workers who could not go back due to non-availability of Biman flights, he said, “Apart from rendering extra flights, Biman has also taken steps to charter/lease aircraft to address the problem of the stranded expatriate workers.”
“Biman needs nine wide-bodied aircraft in the sky. We now have an average of 4-5 aircraft in operation. Issues like transportation of hajj pilgrims and stranded expatriate workers make Biman fly beyond schedule,” Momen said.
The CEO said ageing Biman aircraft, appalling crisis of cash, unprecedented rise of jet fuel price and institutional inefficiency made Biman a burden to the nation.
“Suspension of flight operation on a few so-called prestigious routes, reduction of Biman officials’ number almost to half of the earlier strength and plugging off a few holes of drainage of funds partially improved the situation. The airlines is now working hard to come out of bankruptcy,” he said.
On the sufferings of the stranded workers, Momen said this is an unfortunate situation. He however hoped that the crisis will end soon.
“We have continued to request airlines operating to and from Dhaka to provide extra flights or at least flights agreed in Air Service Agreement (ASA). This is basically a one-way traffic and the return leg is empty, posing challenges to basic economic considerations of airlines,” he said.
Welcoming the government initiative for open sky policy, the Biman MD said, unless the ground is prepared to benefit out of the open skies, extra caution is always required at the policy implementation level. However, in the present context, declaration of time-bound limited open skies to cater to the need of the stranded passengers is a welcome move.
He further said offer of limited open sky as an exception not as a rule during tourist peak seasons is in practice. Airlines have their own business considerations — when the price is acceptable and airlines have extra capacity to serve during October-December, the response will be positive.
Replying to a question, he said, “When there was justifiable basic traffic load, Biman never objected to foreign airlines increasing their flights to and from Bangladesh.”
About their immediate plan to procure aircraft, Momen said, “Biman is now passing through a consolidation phase. It needs four aircraft. On the short term, we prefer ACMI/dry lease/lease with option to purchase.”
Asked about hajj flight operation, the MD replied, “Despite Biman’s unwillingness to be the air transporter for hajj pilgrims, the government has entrusted it with this responsibility. We are yet to know the actual number of pilgrims. We have meanwhile chalked out our programme to carry approximately 40 thousand pilgrims with two leased in aircraft and one dedicated Biman aircraft.”
On Biman’s present financial condition, he said, “It entered a state of bankruptcy years ago. Insiders of Biman and its sympathisers outside could have received the ultimate shock of Biman closure in August 2006 amid the threat of its aircraft being impounded in foreign airports because of huge external liabilities. An equity support of Tk.150 crore from the government slightly eased the situation while the debt burden at that point was close to Tk 2,000 crore.”
About appointing a new operator for Biman, Momen said, “Operator is available for hotel-chains. Aviation has it in a different way — strategic partnership, management contract etc. Biman Board is examining the issue and will decide on it. They are also working on appointing the right CEO with adequate experience and a good track record of success.”
Turning Biman into a PLC is a welcome move towards corporatisation and it is also a test case for Biman as well as other state owned enterprises now in queue for a change.
“Biman’s being a PLC is just a positive step forward. It has to simultaneously follow routes of commercialisation and gradual privatisation. It is too early to assess any impact now but it is felt that Biman is being freed from procedural intervention of government and operational interference,” said the MD.
October 7th, 2007 at 6:21 am
[...] Biman banks on leasing 3 aircraft to lift off Biman Bangladesh Airlines Ltd, plagued with an acute shortage of aircraft and consequent disarray in flight schedule, is now taking some urgent steps… [...]
October 15th, 2007 at 2:42 pm
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