Tk50,000 crore burden looms over Biman

Banglapress Published: 23 September 2025, 10:25 AM

Bangla Press Desk: In a move aimed at reducing retaliatory tariffs, Bangladesh is set to purchase 25 aircraft from American aerospace manufacturer Boeing, intended for the national flag carrier, Biman Bangladesh Airlines. Some of these aircraft are expected to arrive within the next couple of years. However, Biman officials claim they have yet to be formally informed of the deal. This marks the largest aircraft procurement plan in Biman’s history. Yet, questions loom over how the financially fragile airline — which struggles to fill flights on many of its routes — will bear the burden of such a massive fleet expansion. The government claims the agreement will expand Bangladesh’s airspace capabilities and strengthen global connectivity. However, internal audits tell a different story: Biman is operating under multiple limitations, unable to shut down loss-making routes and grappling with an oversized workforce. Aviation insiders have raised concerns over such a major financial commitment being made while keeping Biman itself in the dark. They argue that while acquiring 25 new Boeing aircraft is undoubtedly a bold step, such ambition may cripple the airline unless it becomes more efficient, organised, and transparent.

Instead of strengthening internal capacity first, the government appears to have opted for fleet expansion, potentially leaving the airline — and the country — with an unsustainable burden. Experts warn that these new planes could end up grounded in hangars, gathering dust and draining millions in maintenance and depreciation costs. In response to journalists at the Secretariat, Commerce Secretary Mahbubur Rahman said, “The government already had plans to expand Biman’s fleet. The new orders were placed as part of a trade balancing initiative with the United States, addressing counter-tariff issues. The number of aircraft has increased from 14 to 25.” He added that other countries like India, Vietnam, and Indonesia are also placing Boeing orders. Since Boeing delivers based on order priority and its own commercial strategy, Bangladesh may receive some aircraft within the next two years. He also confirmed a wheat import agreement from the US as part of the broader trade balancing effort. This aircraft procurement initiative aims to reduce the trade deficit with the US and avert a potential 35% import tariff.

Biman unaware of official deal ABM Touhidul Kabir, General Manager (Public Relations) of Biman, told Kaler Kantho, “We have not been officially informed about this.” Kazi Wahidul Alam, former Biman board member and aviation analyst, commented, “Biman’s Fleet Planning Committee should decide how many aircraft are needed, where they’ll be used, and how they’ll be operated. Since Biman will fly the planes and bear the loan liability, imposing such a decision without their involvement is inappropriate. It raises significant doubts about the airline’s capacity to manage this huge financial commitment.” He was part of the board when the caretaker government signed a $2.1 billion deal in 2008 to buy 10 aircraft from Boeing — a decision made after extensive evaluation, negotiation, and securing added benefits from the manufacturer.

How much will it cost? According to Boeing’s list prices, a 787-9 Dreamliner costs around $292 million and a 737 Max about $121.6 million. Bangladesh’s wishlist reportedly includes 10 Dreamliners and 15 Max aircraft. That puts the total cost at approximately $4.74 billion. Even with a bulk discount of 20–30%, insiders estimate the deal will exceed Tk 500 billion. How will it be funded? According to Biman sources, funding will come from foreign bank loans, support from the US Exim Bank, and partial government subsidies. However, there is no clarity on how Biman will repay such a large loan. Analysts warn that acquiring new debt without increasing passengers, routes, or profits could turn the deal into a long-term “debt trap.”

Biman’s financial snapshot Biman currently operates flights to 23 international and eight domestic destinations. Its core business lies in passenger and cargo transport. In addition, it earns revenue from subsidiaries such as ground and cargo handling at Hazrat Shahjalal International Airport, Biman Flight Catering Centre (BFCC), and Biman Poultry Complex (BPC). While Biman claims to be operating at a profit, a report from the Commercial Audit Department indicates that the airline’s actual financial state is being obscured. Profits mainly stem from its subsidiaries — not from its core airline operations. In FY 2023–24, Biman earned Tk10,575 crore, with a net profit of Tk282 crore. It expects profits to exceed Tk800 crore in FY 2024–25. Fleet capacity reality check Biman currently has 21 aircraft. Adding 25 more would require operating 400–500 additional flights per year — something its current infrastructure cannot support. The airline also suffers from shortages of pilots, crew, and engineers. Passenger growth is modest — only 4–6% per year — which experts say cannot offset the expenses of a greatly expanded fleet. They warn that growing the fleet without fixing management inefficiencies could be self-destructive. New planes, new problems? A former board member noted that unless Biman improves its flight operations, engineering support, ground handling, and global partnerships, adding new aircraft will only increase pressure. “No matter how many aircraft are procured, if they don’t fly regularly, lack passengers, or operate on inactive routes, they become dead assets,” he said. How are they buying without the means? Government sources say the deal is being handled at a government-to-government (G2G) level with the US, and funding may come from international development or multilateral banks. However, Biman does not hold a credit rating strong enough to borrow independently, meaning the government may have to provide guarantees — placing significant pressure on the national budget. Where will the 25 aircraft fly? Experts note that even among Biman’s current fleet of 21 aircraft, several remain underutilised due to pilot shortages, route cutbacks, and maintenance delays. Its average load factor is just 65–70%, meaning about a third of seats go unfilled. Except for Dhaka, Chattogram, and Sylhet, no airport in the country is equipped to handle Dreamliners — limiting deployment options for the new aircraft. Old loans still unpaid, new ones incoming Biman has yet to repay loans from the 2008–14 aircraft purchase, which totalled $1.5 billion. The interest-bearing repayments are ongoing. Adding another $4.5 billion in debt could push the airline’s liabilities to unmanageable levels. This article was originally published on Daily Sun.

Bangla Press is a global platform for free thought. It provides impartial news, analysis, and commentary for independent-minded individuals. Our goal is to bring about positive change, which is more important today than ever before.

B P/S

[Bangla Press is a global platform for free thought. It provides impartial news, analysis, and commentary for independent-minded individuals. Our goal is to bring about positive change, which is more important today than ever before.]

Tk50,000 crore burden looms over Biman

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