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Govt picks an MD for Biman soon

Sector insiders favour appointing an aviation professional


Kamrun Nahar | August 11, 2019 00:00:00


The national flag carrier Biman Bangladesh Airlines is seemingly returning to its old path of relying on local expertise as it is on the lookout for a candidate to fill the post of managing director (MD).

It is now contemplating the option of picking a bureaucrat from the relevant ministry for the position. Some people from other backgrounds will also be hired for other top positions, according to sources.

The government is set to appoint the Biman MD and chief executive officer (CEO) after Eid-ul-Adha.

Experts are, however, wary of appointing anyone without necessary expertise in the relevant field for the post of MD of the Biman.

Although the MD is appointed by the Biman board of directors, the ministry concerned intends to appoint a bureaucrat to this post this time, a source in the ministry said.

The source also said three foreigners were also short-listed from an initial list of applicants.

But since the experience of the Biman with foreign MDs was not that palatable, this time the ministry wants a local MD, he added.

For the posts of directors, most of the applicants are from the air force.

Two key posts of Biman-director (marketing) and director (customer care)-have also been lying vacant for a long time as the marketing and customer care director was made officer on special duty (OSD) in April on corruption charges.

Director (flight operations) Capt Farhat Hassan Jamil has been made acting MD, while general manager of customer care Atiq Sobhan is acting as the customer care director.

The Civil Aviation and Tourism Ministry earlier appointed a deputy secretary as director (admin) after the post fell vacant.

Earlier, Civil Aviation and Tourism secretary Mohibul Haque said at a press briefing recently that the ministry does not control Biman, rather it sometimes advises and supports Biman.

The post of MD has been lying vacant for over four months as AM Mosaddique Ahmed was relieved of the post on May 01 last.

The Biman board at a meeting on April 30 fired Mr Mosaddique a month before the expiry of his contractual appointment.

The board took the decision against him on the charges of irregularities in appointment of pilots and lack of transparency.

Biman Director (Flight Operations) Captain Farhat Hasan Jamil replaced Mosaddique and he will continue until a new MD is appointed.

The Biman was turned into a public limited company under the Companies Act 1994 by amending the Bangladesh Biman Corporation (Amendment) Ordinance, 2007 with a vision to make the company profitable by freeing it from bureaucratic complicacies and rampant corruption.

At that time seven members were on the Biman board of directors headed by cabinet secretary. Later the board was reconstituted with 13 members with the chairman as its head.

The 12 directors of the Biman board are: chairman of National Board of Revenue, secretary at Prime Minister's Office, secretary in-charge of Finance Division at the Ministry of Finance, secretary of Ministry of Civil Aviation & Tourism, secretary (Maritime Affairs Unit) at the Ministry of Foreign Affairs, chairman of Civil Aviation Authority of Bangladesh, assistant chief of air staff (Operations), engineer in-chief of Bangladesh Army, president of BGMEA, lawyer at Bangladesh Supreme Court, managing director of Emerging Credit Rating Ltd and managing director & CEO of Biman.

Regarding the appointment of the MD without any experience in the aviation industry, experts say it will certainly not help Biman become a profitable entity.

Seeking anonymity, a former Biman official said a PLC enjoys more freedom under a board. Its decision making is more flexible and it has control over appointment, promotion and posting.

But Biman was not run as per the vision as its board was largely dominated by the bureaucrats and controlled by the ministry or Prime Minster's Office (PMO), the official added.

If there was any public holding in the company, the ministry could not have dominated it like this, ruining its business, he observed.

He suggested turning the Biman into a commercial entity like Pan Pacific Hotel Sonargaon or Intercontinental Dhaka where the government will be the owner but management will be outsourced.

Former managing director of Biman MA Momen told the FE that a true professional should be appointed as the MD and CEO of Biman. It is an age of global competition and the MD must have knowledge about the aviation industry and business.

"Appointment of a generalist would jeopardize the vision of transforming Biman into a commercial entity. The person must have leadership quality, knowledge about aviation business and the overall industry," he suggested.

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