Biman inks deal with Boeing for two aircraft
FE Report | Friday, 27 June 2008
Biman Bangladesh Airlines has ordered two Boeing Next-Generation 737-800s worth between $140 million and $158 million, the Chicago-based Boeing Co. said in an announcement Wednesday.
The national flag career has also purchased rights for another pair of 737s, according an agreement signed by Biman and Boeing.
The signing ceremony, held at the U.S. Department of Commerce, Washington was attended by dignitaries from Bangladesh and the United States and also celebrated Biman's selection of an all-Boeing jet fleet for its future operations.
It is part of a total deal of $ 2.5 billion for the purchase of four 787, four 777 and four 737 aircraft to be supplied to Biman by the Boeing.
With the delivery of these two Boeing Next-Generation 737-800s, Biman's fleet size will reach 13 from the existing 11.
Biman currently owns four McDonnell Douglas DC10-30s, four Fokker F28s, and three Airbus A310-300s. Production of DC10-30s and F28s ended in the 1980s due to their lack of viability in service.
Of the 11 planes of Biman fleet, only four or five are now operational, while the rest are grounded.
Special Assistant to the Chief Adviser and Chairman of Biman Board of Directors Mahbub Jamil and Dr MA Momen, CEO of the Biman company, signed the agreement on behalf of Biman while Senior Vice- President of Sales Marty Bentrott on behalf of the Boeing.
"Today marks a progressive step forward for Biman," said Dr. M. A. Momen, managing director and CEO of Biman.
"Our fleet consolidation with Boeing airplanes is based upon a partnership that combines aircraft efficiency, reliability and in-service support to maximise our competitiveness - something we need to drive forward to be an instrumental part of the country's economic growth and development," he added.
"Boeing is committed to working closely to help airlines in developing nations grow in the most efficient way possible, and our product line reflects that commitment," said Marty Bentrott, Boeing Commercial Airplanes vice president of Sales for the Middle East and Africa.
"We look forward to working closely with Biman Bangladesh over the long term as it capitalises on traffic growth driven by the country's expanding economy," Marty Bentrott added.
The airline currently connects Bangladesh with 18 countries around the world, and has agreements in place that will allow it to serve a total of 42 countries as it implements its growth plan.
Biman Bangladesh Airlines, which began as a government-owned national carrier in 1972, became public limited company in 2007. The purchase of Boeing airplanes represents the largest capital expenditure in the country's history.
Bangladesh's aviation industry grows 7.5 per cent a year, making it one of the fastest-growing markets in the region.
But foreign airliners control over 80 per cent of the slice as once-dominant Biman lost out to its competitors.
The cash-strapped national flag carrier is still scrambling to reach a breakeven point as it managed to cut back on losses to $100 million in fiscal 2007 from a record loss of $120 million in the fiscal 2006.
The financial woes forced the airliner to shed 2000 jobs and suspend flights in eight international and four domestic routes.
One hundred fifteen customers have ordered more than 4,800 Next-Generation 737s. Boeing has more than 2,200 unfilled orders for the Next-Generation 737 valued at more than $160 billion at current list prices, the Boeing said.
UNB adds: United States Congressman James McDermott called for ending unfair duty treatment on the products from least-developed countries like Bangladesh, as Biman struck a big purchase deal with Boeing.
He was speaking as special guest in the high-profile signing ceremony of what is billed "historic deal" between Biman Bangladesh and Boeing of the USA at the US Department of Commerce in Washington, DC, on Wednesday.
Congressman Jim McDermott, who sponsored the bill titled New Partnership for Development Act (NPDA) in the US Congress proposing duty-free entry of all products from all Least Developed Countries, including Bangladesh, congratulated Biman on striking this historic deal and assured of his "best possible effort" for the passage of the bill.
Mahbub Jamil said this agreement ushered in a "new era" in the aviation history of Bangladesh and hoped that this business deal would work as a strong pillar of friendship between Bangladesh and the United States.
Donald Camp, Principal Deputy Assistant Secretary of the US Department of State, termed this business deal an evidence of potential of the growing economy of Bangladesh. "This deal will go a long way in further strengthening commercial relations between the two countries," he was quoted as saying.
Sharing his optimism of a democratic Bangladesh, Camp commented that the "people of Bangladesh look forward to the forthcoming general election in Bangladesh by December 2008, where 80 million Bangladeshi citizens are expected to exercise their franchise in order to install a new democratic Government".
The ceremony was attended by a good number of businesspeople from the USA and Bangladesh, members of the media, congressional aides, members of think tanks, high officials from the State Department, the Department of Commerce, Federal Aviation Administration, US Trade and Development Agency, the Department of Transportation and a cross- section of the members of Bangladesh's expatriate community.
Charg
The national flag career has also purchased rights for another pair of 737s, according an agreement signed by Biman and Boeing.
The signing ceremony, held at the U.S. Department of Commerce, Washington was attended by dignitaries from Bangladesh and the United States and also celebrated Biman's selection of an all-Boeing jet fleet for its future operations.
It is part of a total deal of $ 2.5 billion for the purchase of four 787, four 777 and four 737 aircraft to be supplied to Biman by the Boeing.
With the delivery of these two Boeing Next-Generation 737-800s, Biman's fleet size will reach 13 from the existing 11.
Biman currently owns four McDonnell Douglas DC10-30s, four Fokker F28s, and three Airbus A310-300s. Production of DC10-30s and F28s ended in the 1980s due to their lack of viability in service.
Of the 11 planes of Biman fleet, only four or five are now operational, while the rest are grounded.
Special Assistant to the Chief Adviser and Chairman of Biman Board of Directors Mahbub Jamil and Dr MA Momen, CEO of the Biman company, signed the agreement on behalf of Biman while Senior Vice- President of Sales Marty Bentrott on behalf of the Boeing.
"Today marks a progressive step forward for Biman," said Dr. M. A. Momen, managing director and CEO of Biman.
"Our fleet consolidation with Boeing airplanes is based upon a partnership that combines aircraft efficiency, reliability and in-service support to maximise our competitiveness - something we need to drive forward to be an instrumental part of the country's economic growth and development," he added.
"Boeing is committed to working closely to help airlines in developing nations grow in the most efficient way possible, and our product line reflects that commitment," said Marty Bentrott, Boeing Commercial Airplanes vice president of Sales for the Middle East and Africa.
"We look forward to working closely with Biman Bangladesh over the long term as it capitalises on traffic growth driven by the country's expanding economy," Marty Bentrott added.
The airline currently connects Bangladesh with 18 countries around the world, and has agreements in place that will allow it to serve a total of 42 countries as it implements its growth plan.
Biman Bangladesh Airlines, which began as a government-owned national carrier in 1972, became public limited company in 2007. The purchase of Boeing airplanes represents the largest capital expenditure in the country's history.
Bangladesh's aviation industry grows 7.5 per cent a year, making it one of the fastest-growing markets in the region.
But foreign airliners control over 80 per cent of the slice as once-dominant Biman lost out to its competitors.
The cash-strapped national flag carrier is still scrambling to reach a breakeven point as it managed to cut back on losses to $100 million in fiscal 2007 from a record loss of $120 million in the fiscal 2006.
The financial woes forced the airliner to shed 2000 jobs and suspend flights in eight international and four domestic routes.
One hundred fifteen customers have ordered more than 4,800 Next-Generation 737s. Boeing has more than 2,200 unfilled orders for the Next-Generation 737 valued at more than $160 billion at current list prices, the Boeing said.
UNB adds: United States Congressman James McDermott called for ending unfair duty treatment on the products from least-developed countries like Bangladesh, as Biman struck a big purchase deal with Boeing.
He was speaking as special guest in the high-profile signing ceremony of what is billed "historic deal" between Biman Bangladesh and Boeing of the USA at the US Department of Commerce in Washington, DC, on Wednesday.
Congressman Jim McDermott, who sponsored the bill titled New Partnership for Development Act (NPDA) in the US Congress proposing duty-free entry of all products from all Least Developed Countries, including Bangladesh, congratulated Biman on striking this historic deal and assured of his "best possible effort" for the passage of the bill.
Mahbub Jamil said this agreement ushered in a "new era" in the aviation history of Bangladesh and hoped that this business deal would work as a strong pillar of friendship between Bangladesh and the United States.
Donald Camp, Principal Deputy Assistant Secretary of the US Department of State, termed this business deal an evidence of potential of the growing economy of Bangladesh. "This deal will go a long way in further strengthening commercial relations between the two countries," he was quoted as saying.
Sharing his optimism of a democratic Bangladesh, Camp commented that the "people of Bangladesh look forward to the forthcoming general election in Bangladesh by December 2008, where 80 million Bangladeshi citizens are expected to exercise their franchise in order to install a new democratic Government".
The ceremony was attended by a good number of businesspeople from the USA and Bangladesh, members of the media, congressional aides, members of think tanks, high officials from the State Department, the Department of Commerce, Federal Aviation Administration, US Trade and Development Agency, the Department of Transportation and a cross- section of the members of Bangladesh's expatriate community.
Charg