Biman to buy 10 new aircraft from Airbus

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A Z M Anas
Biman has launched negotiations to buy 10 new aircraft from European aviation giant Airbus to strengthen its existing fleet, more than half of which has become obsolete, well-placed sources said.
The ailing national carrier will purchase A320 for short-haul routes while A340 and A330 will be procured for long-haul flights in a move to avert frequent disruptions in flight schedules, they said.
"It was a preliminary discussion. The visiting Airbus team will make another presentation to the Biman's fleet planning committee within a day or two," a source close to Biman said Tuesday.
"If the committee is convinced about the Airbus proposal, the board will then review it. I think, Airbus will come up with a concrete proposal early next month," the source told The Financial Express, asking not to be named.
The country's largest carrier is scrambling to keep it afloat as it incurred a loss of around US$100 million in 2007 fiscal, after a record loss of $120 million in the previous fiscal.
Biman, which became a public company last year, has a fleet of 12 aircraft, with their age spanning from 19 to 28 years.
The airline said nearly 70 per cent of its losses are due to the fuel-guzzling, aged fleet.
The financial woes forced the carrier, which became a public company last year, to shed as many as 2000 jobs and suspend eight non-viable international flights and four domestic routes.
Sources at Biman said visiting Airbus delegation made a presentation Monday in the city, briefing the national airliner's board about its aircraft models.
Sources said Airbus can deliver the A320 aircraft by 2010 and other new model planes by 2018 for the Bangladeshi carrier under the potential deal.
The A320 family has the lowest operating costs of any single aisle aircraft, due to its proven reliability and extended servicing periods, says its website.
It was not immediately known about the value of the potential deal, nor the source of financing for the purchase by Biman. The state-owned airline expects to financially breakeven next fiscal before becoming a profitable concern in fiscal 2010.
A source said Airbus also offered to provide 'strategic services' to Biman to ensure its commercial operation and re-brand the carrier.
On March 15, Biman also sealed a 'landmark' deal with American aircraft manufacturer Boeing to buy eight latest-generation commercial jets at a cost of US$1.26 billion.
Under the agreement, Boeing will deliver four Boeing-777-300 ER between July and December of 2013 and four Being-787-8 between July and November of 2017.