Biman: The nation\\\'s loss-making flag carrier

Biman Bangladesh Airlines, simply known as Biman, is badly suffering from corruption and mismanagement for the last four decades. It has turned into a white elephant! The country's flag carrier has failed to maintain its routes and schedules and has incurred substantial losses. Today, Biman's destinations are limited to 16 countries, although it had contracts with 42 countries for air services.
Under the last caretaker government, Biman Bangladesh Airlines was converted into a public limited company on July 23, 2007. This dramatic development enabled Biman to make a profit of Tk 51.9 million in FY 2008. In FY 2009, it made a profit of Tk 155.7 million. Thereafter, Biman continued to make losses - Tk 800 million in FY 2010; Tk 1.91 billion in FY 2011; Tk 6.05 billion in FY 2012; Tk 2.14 billion in FY 2013; Tk 2.20 billion in FY 2014; and Tk 2.63 billion in FY 2015.
Unfortunately, the list of destinations of Biman continues to shrink when other airlines are expanding their routes. Several international destinations have been terminated. Out of the 19 existing international destinations, nine are making losses. Slowly, the country's airline business is being dominated by other airline companies. In rendering services to passengers, Biman is lagging behind and even Bangladeshi expatriates seem reluctant to book Biman's flight. According to the company's officials - lack of correct leadership and planning, corruption and mismanagement are responsible for recurring losses despite the addition of energy-efficient aircrafts.
 Biman recruits its manpower without advertisement. Widespread fraud allegedly exists in payment of bills and overtime dues. The airline often fails to maintain the flight schedules and hence do not get the desired number of passengers. Plus, political pressure is imposed on operating flights in specific routes. The Dhaka-Rome-Frankfurt route is contributing to the loss of revenue. The route from Dhaka to Hong Kong is causing a loss of Tk 3.4 million per flight. The Dhaka-Delhi flights are also a losing concern. So, the national flag-carrier has decided to stop flights in loss-making routes. Experts believe that the company's top management is actually responsible for such heavy losses. Evidently, Biman's tradition is to increase costs rather than reducing expenditure.
Meanwhile, a 15-point recommendation has been made by a committee of the Ministry of Civil Aviation and Tourism to improve the conditions of Biman. Emphasis has been given on the reduction of excessive manpower from top to the bottom of the organisation. Overtime bills are often misused. There was a time when other airlines used to buy food from Biman Catering Services, although this has stopped - Biman's exclusive food items did not meet standards.
In the corporate world of Biman, corruption and mismanagement are allegedly rampant due to the lack of transparency and governmental regulations. It is also alleged that there exists so-called syndicates of corrupt people. Corporate malpractices are often suspected and even detected - in buying planes, leasing, repair, purchase of spare parts, sale of tickets and grounds handling. Bribes are said to have become a common ritual! When foreign airlines are making tremendous profit, Biman is counting heavy losses.
In 2013, one of the Airbus aircraft belonging to Biman was taken to Singapore for repair. In 2014, another aircraft was taken to Singapore for repair. A committee was set up for enquiry into complaints of irregularities and corruption. However, the committee could not function due to obstruction from a 'syndicate'.
Annually, a large portion of Biman's revenue is squandered  in the name of purchase of equipment and repair. On July 03, 344 kilograms of extra cargo was confiscated from a Biman aircraft by customs officials at London's Heathrow International Airport. Sources say that this happens on a regular basis. The Anti-Corruption Commission (ACC) is investigating into the matter.
Last year, an experienced British citizen was appointed Chief Executive Officer (CEO) of Biman Bangladesh Airlines Ltd. in order to make it profitable. He declared that the company would be able to make profit in the next two years. In the first year, profit and loss would balance and Biman would make profit in the latter. Surprisingly, the CEO had resigned at the end of one year leaving the airline amidst critical losses.
The Transparency International Bangladesh (TIB) recently carried out a study on Biman and found lack of accountability in all areas. The last caretaker government made the company profitable in two years, although the current government has failed to do so even after seven years.
The writer is an economist
and columnist.
[email protected]