'Biman should float share after emerging as plc'
Monday, 9 July 2007
Biman Bangladesh Airlines should be listed on the stock market once it emerges as a public limited company (PLC), experts told a seminar Sunday, reports bdnews24.com.
"Biman shares will be floated in the market after it is made a public limited company and its liabilities are met by the government," Biman Managing Director MA Momen said.
However, former Bangladesh Bank governor Farash Uddin said, "Only making Biman a public limited company will not do, it has to be privatised too,"
The national flag carrier wanted to take Air New Zealand on board as its busi ness partner in 2000, but trade unions foiled the move, he said.
The seminar, "Structural reorganisation of Biman", was organised by Bangladesh Economic Society with economist Q Kholiquzzaman in the chair.
"The national airline has been wrecked by widespread corruption and excessive overhead expenditure incurred during the past governments.
"And the governments also used the trade unions to serve their ends. Any reforms to the organisation need to take all these issues into account," the Biman MD Momen said
Momen said in the past a $45 million plane was purchased at a whopping $75 million, forcing the national flag carrier to pay off debts for years.
Biman also counts some Tk 4.0 billion (400 crore) a year in fuel costs as it buys fuel in the local market at abnormally high prices, he added.
"While buying planes for the airline in future, we have to seriously consider the type of aircraft most suitable and profitable for us," said acting civil aviation secretary Altaf Ali.
"Biman is a virtual goldmine. It may be possible to revive its fortunes with skilled management and long-term plans like many airlines have done. One has to have the goodwill to do that," said Abul Barakat, who teaches economics at Dhaka University.
"Biman shares will be floated in the market after it is made a public limited company and its liabilities are met by the government," Biman Managing Director MA Momen said.
However, former Bangladesh Bank governor Farash Uddin said, "Only making Biman a public limited company will not do, it has to be privatised too,"
The national flag carrier wanted to take Air New Zealand on board as its busi ness partner in 2000, but trade unions foiled the move, he said.
The seminar, "Structural reorganisation of Biman", was organised by Bangladesh Economic Society with economist Q Kholiquzzaman in the chair.
"The national airline has been wrecked by widespread corruption and excessive overhead expenditure incurred during the past governments.
"And the governments also used the trade unions to serve their ends. Any reforms to the organisation need to take all these issues into account," the Biman MD Momen said
Momen said in the past a $45 million plane was purchased at a whopping $75 million, forcing the national flag carrier to pay off debts for years.
Biman also counts some Tk 4.0 billion (400 crore) a year in fuel costs as it buys fuel in the local market at abnormally high prices, he added.
"While buying planes for the airline in future, we have to seriously consider the type of aircraft most suitable and profitable for us," said acting civil aviation secretary Altaf Ali.
"Biman is a virtual goldmine. It may be possible to revive its fortunes with skilled management and long-term plans like many airlines have done. One has to have the goodwill to do that," said Abul Barakat, who teaches economics at Dhaka University.