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Let Biman stand on its own feet

September 06, 2007 00:00:00


Shahiduzzaman Khan
Biman is again in the docks. After turning into a holding company, the people thought the Biman would make a spectacular comeback. Apparently, it has not. Sudden death still haunts this troubled airlines.
When Biman was launched as a national flag carrier in 1972, its initial paid-up capital was Tk 77 only. After all these years of strenuous journey and going through rigorous process of so-called 'reform', its paid-up capital remains yet only Tk 700. Imagine, with such a near-nil capital, how could it sail through years of animated journey?
Biman had survived with long-term credit drawn from banks and financial institutions. But the government did not inject fresh cash into its vein. In patronising Biman, a section of government officials and ministers were actually engaged in widespread corruption. Some Biman officials and employees played a very nasty sort of game to make it a bottomless basket case. None actually thought of patronising it in a healthy way so that it could become self-sufficient.
For every Airbus or Boeing bought or leased for Biman with bank loans, greedy ministers and a section of government officials and Biman employees received fabulous amount of commissions and tips. For every spare-part it had bought, Biman men ate a hefty amount. Many flights were operated on unprofitable routes causing Biman to incur a huge loss. A lot of protests came from many corners, but the authorities turned a deaf ear to. Biman was never allowed to stand on its own feet. It was used as a pawn by a section of money-seekers who amassed fabulous wealth out of it.
According to recent media reports, two meetings of the board of directors were already held after its new face-lift and yet no effective decision was taken to salvage it from perennial fund crisis. Decision to hand over its management and operational activities to any famous overseas airline could not be implemented. No foreign airline would agree to come alone if it is not given exclusive right to operate. Earlier some strategic partners were searched through tenders. But none was interested to become the ailing airline's strategic partner.
Taking stock of Biman's ailing condition, many airlines have increased their frequency of flights in this part of the world, and have been making windfall profits. In the recent past, manpower export has increased considerably and most of the airlines have raised their fare. Even then, they are not in a position to take all the passengers to their desired destinations for lack of sufficient flights. The Association of Travel Agents of Bangladesh (ATAB) held a press conference where it had raised a very important issue. Due to non-availability of flights, visas of a thousand job-seekers are being cancelled by the receiving countries every month. On an average, over 1000 passengers are being deprived of daily flights. The ATAB wanted procurement of two more aircraft for Biman exclusively for the ride of the job seekers abroad.
Out of 13 planes owned by the Biman, nine are operating on international routes at present. But half of these aircraft remain inoperative most of the time. On an average, five planes operate on different routes which are very inadequate for maintaining flight schedules. Many non-profitable routes were cancelled in the recent past, ever then flight schedules cannot be maintained. Out of four DC-10, two remain grounded due to technical troubles. Two other operating aircraft will go for routine maintenance within two to three months. If new engines fail to arrive, all four DC-10 will be inoperative. Five other airbuses owned by the Biman are pretty old and need repair off and on.
Due to grounding of these planes in the name of maintenance, the Biman is incurring huge losses to the tune of Tk 1.0 billion to 1.5 billion every month. Hajj flights are expected to begin in November next. The Biman has entered into an agreement with a foreign firm on taking lease of two aircraft. If these planes fail to arrive in time, certainly there will be a mess all around.
Informed sources say a section of vested quarters in the aviation ministry do not want Biman's advancement as a new generation airline. They are allocating more flight frequencies to foreign airlines depriving Biman and earning speed money. Transparency International Bangladesh (TIB) has found truth in this allegation. According to reports, the civil aviation ministry approved operation of 120 flights for Air India from Dhaka and Chittagong. When the Biman raised objection to such a 'liberal' policy, some ministry henchmen castigated the Biman men for showing unwarranted 'patriotism'.
Evidently, Biman is in need of huge cash funds to buy new generation aircraft and high-tech equipment. Examples are galore that the airlines of many countries are making forward march with direct financing from the state organs. Such airlines are also making profit. In this case as well, the state needs to invest in the public sector airline directly. If the state fails to provide fund, it can arrange bank loans and other necessary back-up facilities for smooth running of the airline.
The country has already seen emergence of three private airlines in a short period of time. All these are going to make good profit soon. The officers and employees of Biman, who have just retired accepting the golden handshake programme, are launching a private airline of their own. If all these airlines move in the right direction and can have several aircraft of their own, why will not Biman be in a comfortable position to claim its commercial stake in the world aviation industry with the goodwill of the state? Let Biman survive and operate well. The nation cannot afford to see a clinically dead organisation any more.

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