Biman to hire 3 wide-bodied aircraft to replace DC-10s

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A Z M Anas
State-controlled Biman is about to hire three aircraft including Boeing 737 from two top global financiers as it moves to accelerate retiring its aged, fuel-guzzling DC-10 planes, officials said Wednesday.
The officials said that Biman Bangladesh Airlines Ltd was inking agreements with the international leasing giant Global Capital Corp for the "dry lease" of two Boeing planes by December for a five-year term.
It will also take delivery of one Airbus A-310 from the International Lease Finance Corporation (ILFC) on dry lease that involves only the supply of aircraft.
"It's a band aid. There is no other option before us," a senior Biman official said.
The official, however, declined to disclose the financial details of the deals.
Although the lease option is a temporary solution, the official said it would help the airline authority to maintain its already stressed schedules.
"We've chosen the types of aircraft so that our pilots can get accustomed to the new generation Boeing planes," he added.
The leased aircraft is expected to strengthen the carrier's ability to replace its two DC-10 planes, which Biman officials say must be replaced by 2012.
Burdened with its depleting fleet, Biman last year signed a deal with the global aviation giant Boeing to buy four 777-300ERs and four 787-8s with an option to procure four more.
Boeing said it would deliver first four 777-300 ERs in early 2013 while the rest would be supplied in phases through 2020.
The purchase order by Biman, a public limited company since 2007, represents the largest capital investment in the country's history. It has already paid $1.54 million in booking fees from its own coffers.
A person familiar with the leasing process said Biman's earlier attempts to lease B-737 planes from Hong Kong-based Cathay Pacific and Singapore Airlines had failed.
Once delivered, the leased aircraft will bring Biman's fleet strength to 11, officials said.
"If delivered in time, it will help launch our new routes including Dhaka-Tripoli," another official said.
For years, Biman has suffered an image crisis, marked by sleaze, murky past, chaotic flight schedule and fuel-inefficient planes.
Fuel makes up more than 50 per cent of Biman's operating expenses, but officials said the costs soared up to 65 per cent in July last year when oil prices topped a record $ 147 a barrel.
The aircraft hiring plan, officials say, is also part of the carrier's aggressive move to polish its image and help regain its market share.
Biman, once the leader, lost out to foreign carriers, notably a few airlines of the Gulf region. It now controls less than 20 per cent of the country's rapidly growing aviation sector.
Under pressure from the huge losses, the state carrier retrenched 2,000 workers in 2007 and suspended flights to eight loss-making international destinations. It also withdrew from the domestic market, cutting four domestic routes under its restructuring drive.