A road map for Biman
Saturday, 4 August 2007
Sheikh Monirul Islam, Opee
A very powerful businessman who made fortunes out of Biman once said to me: "as long as we are there, Biman would never be made a PLC". Such was the power of that syndicate that they obviously felt that way. I do not blame them; they are the product of the system at the time. Now the time has changed.
We hear so much about national security these days, especially, the National Security Council; very rightly civil aviation, and for that matter the air transportation is part of that national security. At times when readymade garment (RMG) industries require making urgent shipment to meet the deadline, air transport is the obvious choice.
Second, we must get rid of that idea of national flag carrier is only symbolic. Let us establish a viable airline business first. Success story will pour in automatically if we take nationalistic pride in it.
The regional traffic growth is above nine per cent. So there are no fears to take up this venture without any further delay.
Let the government remove all the barriers by taking the liabilities; so that shares can be offered to viable business partner. A word of caution here that big investors look at our deed first, they look at our country profile, they will hunt for any data available from reliable international sources, and based on that they make their decision. So please do not look for short cuts, because there are none!
The country does not have the required management skills to run a commercial airline. There are no easy rides; we have to face the dilemma. Unless we are ready to make a study group, prepare a rescue mission, and with all the necessary required documents to please a viable investor…a high power delegation will go to a country like the UAE where a big investor like Mobadala group with huge interest in aviation, just might be ready to give you an appointment. Do not be discouraged; behind every frustrations great hopes are just lying behind…let us give it our best shots.
So, we need to generate a huge amount of cash which is impossible from our internal resources. Having said that, let us hope that funds are available. Next, how we are going to govern and administer the day to day technical business in general? In another word who is going to run the show at the helm? Only professionally sound, accountable manager with sound and proven track record internationally. This is the only precondition for success this time.
Now here come resource management and strategic direction. A highly motivated group of people with sound track record, once again, can be trusted with the task. No one previously employed in Biman is definitely a suitable choice…please!
I like to propose the following suggestions:
Our present fleet; three F-28 aircrafts are big liabilities, very difficult to sell them; no one would offer a price. So what we do with them. Give one to airline training centre where they are able to use it for their training purpose, keep one for future aviation school, and the third best one can be turned in to corporate jet for hire by businessmen/VIPs.
Four Airbus 310 can be sold in the market at a commercially competitive price. DC-10s are our good asset, we need some investment here. Take them to Singapore ST Aviation; modify them to cargo aircraft. Keep 2/3 for our future cargo operations; sell the other two to make some money as they have demands in the market.
Future Fleet; our first criterion must be fuel efficiency; so choice of Airbus fleet suites our need. Maintenance concept wise Airbus aircrafts are far versatile as they are easy to maintain due to their advance technologies. Spare parts are available everywhere as they are widely operated within our network; it will give us more flexibility to handle our line station capabilities.
Airbus has price competitive advantage over any other commercial aircraft manufacturers.
If we choose A320 for our domestic/regional routes, A330 for short/medium hauls, and A340 for the medium/long range, is going to be perfect win-win situation. But must be careful in choosing engines for these aircrafts. CFM-56 for the A320 & A340 and CF6-80 for the A330 are perfect choice as general electric engines are the best proven already. Using these three types of aircrafts will provide better logistic support as we have to spend less for stock keeping spare parts as many items are common in use in these three types of aircrafts. Having all general electric engines will make it easy to set-up our workshop for maintenance.
And finally, the most expensive affairs in airline industry is training pilots & engineers; within days a pilot from A320 can be made ready to fly A330 & A340 and so are the engineers. It is conceptually a brilliant idea which brings huge cost effectiveness.
Setting-up aviation school; we have no alternative but to set up our own workforce development strategy. There is a tremendous shortage of required human resources internationally. This is a pre-condition to our success as we need long term security in this regard.
Pilot/engineer/technical staff; all professionals will be put to contractual job hire requirements. All high salary jobs are contractual and renewable on the basis of performance alone. In this way unions will not be effective. Our own trained people will be available to balance that bargaining empowerment. Again this will give long term security.
Engineering developments; due to very fast and robust expansion in the industry, third party maintenance is a very lucrative business. Setting up maintenance, repair & overhaul (MRO) station will be a long term, but surely successful venture. In the region a huge number of operators are buying new aircrafts, and within next five to ten years time maintenance activities are going to be in high demand.
Close co-operation between Airline /CAAB/ Airport Authorities; Biman requires a free hand to run it affairs and all decisions be made for commercial reasons only. Removing the Ministry of Aviation from Segunbagicha and relocating it in the same building where CAAB can also be housed, will cut down cost dramatically. This will bring close co-operation between all the associated and all concerned organisations to develop our future aviation industry.
The writer is a licensed aircraft engineer and has worked for 26 years with Qantas, Biman , Malaysia Airlines & Etihad Airways and has extensively worked on Boeing, McDonald Douglas & Airbus aircrafts including Roles Royce, General Electric and Pratt&Whitney Engines. He can be reached at email: opshelley@yahoo.com
A very powerful businessman who made fortunes out of Biman once said to me: "as long as we are there, Biman would never be made a PLC". Such was the power of that syndicate that they obviously felt that way. I do not blame them; they are the product of the system at the time. Now the time has changed.
We hear so much about national security these days, especially, the National Security Council; very rightly civil aviation, and for that matter the air transportation is part of that national security. At times when readymade garment (RMG) industries require making urgent shipment to meet the deadline, air transport is the obvious choice.
Second, we must get rid of that idea of national flag carrier is only symbolic. Let us establish a viable airline business first. Success story will pour in automatically if we take nationalistic pride in it.
The regional traffic growth is above nine per cent. So there are no fears to take up this venture without any further delay.
Let the government remove all the barriers by taking the liabilities; so that shares can be offered to viable business partner. A word of caution here that big investors look at our deed first, they look at our country profile, they will hunt for any data available from reliable international sources, and based on that they make their decision. So please do not look for short cuts, because there are none!
The country does not have the required management skills to run a commercial airline. There are no easy rides; we have to face the dilemma. Unless we are ready to make a study group, prepare a rescue mission, and with all the necessary required documents to please a viable investor…a high power delegation will go to a country like the UAE where a big investor like Mobadala group with huge interest in aviation, just might be ready to give you an appointment. Do not be discouraged; behind every frustrations great hopes are just lying behind…let us give it our best shots.
So, we need to generate a huge amount of cash which is impossible from our internal resources. Having said that, let us hope that funds are available. Next, how we are going to govern and administer the day to day technical business in general? In another word who is going to run the show at the helm? Only professionally sound, accountable manager with sound and proven track record internationally. This is the only precondition for success this time.
Now here come resource management and strategic direction. A highly motivated group of people with sound track record, once again, can be trusted with the task. No one previously employed in Biman is definitely a suitable choice…please!
I like to propose the following suggestions:
Our present fleet; three F-28 aircrafts are big liabilities, very difficult to sell them; no one would offer a price. So what we do with them. Give one to airline training centre where they are able to use it for their training purpose, keep one for future aviation school, and the third best one can be turned in to corporate jet for hire by businessmen/VIPs.
Four Airbus 310 can be sold in the market at a commercially competitive price. DC-10s are our good asset, we need some investment here. Take them to Singapore ST Aviation; modify them to cargo aircraft. Keep 2/3 for our future cargo operations; sell the other two to make some money as they have demands in the market.
Future Fleet; our first criterion must be fuel efficiency; so choice of Airbus fleet suites our need. Maintenance concept wise Airbus aircrafts are far versatile as they are easy to maintain due to their advance technologies. Spare parts are available everywhere as they are widely operated within our network; it will give us more flexibility to handle our line station capabilities.
Airbus has price competitive advantage over any other commercial aircraft manufacturers.
If we choose A320 for our domestic/regional routes, A330 for short/medium hauls, and A340 for the medium/long range, is going to be perfect win-win situation. But must be careful in choosing engines for these aircrafts. CFM-56 for the A320 & A340 and CF6-80 for the A330 are perfect choice as general electric engines are the best proven already. Using these three types of aircrafts will provide better logistic support as we have to spend less for stock keeping spare parts as many items are common in use in these three types of aircrafts. Having all general electric engines will make it easy to set-up our workshop for maintenance.
And finally, the most expensive affairs in airline industry is training pilots & engineers; within days a pilot from A320 can be made ready to fly A330 & A340 and so are the engineers. It is conceptually a brilliant idea which brings huge cost effectiveness.
Setting-up aviation school; we have no alternative but to set up our own workforce development strategy. There is a tremendous shortage of required human resources internationally. This is a pre-condition to our success as we need long term security in this regard.
Pilot/engineer/technical staff; all professionals will be put to contractual job hire requirements. All high salary jobs are contractual and renewable on the basis of performance alone. In this way unions will not be effective. Our own trained people will be available to balance that bargaining empowerment. Again this will give long term security.
Engineering developments; due to very fast and robust expansion in the industry, third party maintenance is a very lucrative business. Setting up maintenance, repair & overhaul (MRO) station will be a long term, but surely successful venture. In the region a huge number of operators are buying new aircrafts, and within next five to ten years time maintenance activities are going to be in high demand.
Close co-operation between Airline /CAAB/ Airport Authorities; Biman requires a free hand to run it affairs and all decisions be made for commercial reasons only. Removing the Ministry of Aviation from Segunbagicha and relocating it in the same building where CAAB can also be housed, will cut down cost dramatically. This will bring close co-operation between all the associated and all concerned organisations to develop our future aviation industry.
The writer is a licensed aircraft engineer and has worked for 26 years with Qantas, Biman , Malaysia Airlines & Etihad Airways and has extensively worked on Boeing, McDonald Douglas & Airbus aircrafts including Roles Royce, General Electric and Pratt&Whitney Engines. He can be reached at email: opshelley@yahoo.com