Biman to lease four Boeings to retire its ageing planes
Monday, 27 April 2009
A Z M Anas
Biman will lease four Boeing planes including B-777 as it finally readies a plan to retire the aging, fuel-guzzling DC-10 aircraft, officials said Sunday.
The national flag carrier, which returned to "surprise" profits in 2008 fiscal, has 13 planes including four DC-10 aircraft, most of which are aged 25 to 30 years.
Biman officials said two B-737 planes would be procured from Hong Kong-based Cathay Pacific and the rest from Singapore Airlines.
The planes will be leased for three years, just two years before the scheduled delivery of Boeing new generation aircraft including 787 Dreamliner.
"It's an interim plan. But it is needed to overcome the aircraft crisis," a senior Biman official said.
"We're moving ahead with grounding of all the aged planes in a phased manner. This will certainly boost our image. It will also help us to grow and fight off competition from foreign carriers," the official added.
He said that four leased aircraft are expected to join the Biman's fleet in May or June, bringing Biman Bangladesh Airlines Ltd's fleet strength to 17.
"If delivered in time, it will help launch our new routes including Dhaka-Tripoli," the Biman official said.
For years, Biman has suffered an image crisis, marked by murky past, small fleet and fuel-inefficient planes.
Under pressure from the huge losses, the state carrier retrenched 2,000 workers in 2007 and suspended flights to eight loss-making international destinations. It also withdrew from the domestic market, cutting four domestic routes under its restructuring drive.
However, the national flag carrier posted Tk 190 million in profits in 2008 fiscal after a combined loss of US$220 million in the two consecutive financial years. It racked up a record loss of $120 million in 2006 fiscal.
The lease plan, officials say, is also part of the carrier's aggressive move to burnish its image and help regain its market share.
Biman, once the leader, lost out to foreign carriers, notably a few airlines of the gulf, now controls less than 20 per cent of the country's fastest-growing aviation sector.
"I think, we will be on a more solid position than before. When the aircrafts are delivered, there will be no shortage of our capacity," another Biman official said.
The move comes at a time when it has already ordered 10 new generation aircraft from the global aviation giant Boeing to take delivery of those by 2013 through 2020.
The airline's US$1.26 billion-order includes four 777-300 ER and four 787 Dreamliner. Boeing will deliver the 463-seat 777-300 ER between July and August 2013 and the 294-seat 787-8 between July-December 2017.
It has two Boeing 737 planes taken on wet lease that involves crew, insurance and maintenance in addition to aircraft.
The national carrier started in 1972 with a vintage Dakota DC-3 aircraft, less than a month after Bangladesh won independence from Pakistan. Its current fleet includes four 25-year-old DC-10 planes which officials say must be replaced in a few years.
Biman travels to 18 countries around the world, but officials hope to offer flights to up to 42 destinations as they map out an aggressive growth plan.
Biman will lease four Boeing planes including B-777 as it finally readies a plan to retire the aging, fuel-guzzling DC-10 aircraft, officials said Sunday.
The national flag carrier, which returned to "surprise" profits in 2008 fiscal, has 13 planes including four DC-10 aircraft, most of which are aged 25 to 30 years.
Biman officials said two B-737 planes would be procured from Hong Kong-based Cathay Pacific and the rest from Singapore Airlines.
The planes will be leased for three years, just two years before the scheduled delivery of Boeing new generation aircraft including 787 Dreamliner.
"It's an interim plan. But it is needed to overcome the aircraft crisis," a senior Biman official said.
"We're moving ahead with grounding of all the aged planes in a phased manner. This will certainly boost our image. It will also help us to grow and fight off competition from foreign carriers," the official added.
He said that four leased aircraft are expected to join the Biman's fleet in May or June, bringing Biman Bangladesh Airlines Ltd's fleet strength to 17.
"If delivered in time, it will help launch our new routes including Dhaka-Tripoli," the Biman official said.
For years, Biman has suffered an image crisis, marked by murky past, small fleet and fuel-inefficient planes.
Under pressure from the huge losses, the state carrier retrenched 2,000 workers in 2007 and suspended flights to eight loss-making international destinations. It also withdrew from the domestic market, cutting four domestic routes under its restructuring drive.
However, the national flag carrier posted Tk 190 million in profits in 2008 fiscal after a combined loss of US$220 million in the two consecutive financial years. It racked up a record loss of $120 million in 2006 fiscal.
The lease plan, officials say, is also part of the carrier's aggressive move to burnish its image and help regain its market share.
Biman, once the leader, lost out to foreign carriers, notably a few airlines of the gulf, now controls less than 20 per cent of the country's fastest-growing aviation sector.
"I think, we will be on a more solid position than before. When the aircrafts are delivered, there will be no shortage of our capacity," another Biman official said.
The move comes at a time when it has already ordered 10 new generation aircraft from the global aviation giant Boeing to take delivery of those by 2013 through 2020.
The airline's US$1.26 billion-order includes four 777-300 ER and four 787 Dreamliner. Boeing will deliver the 463-seat 777-300 ER between July and August 2013 and the 294-seat 787-8 between July-December 2017.
It has two Boeing 737 planes taken on wet lease that involves crew, insurance and maintenance in addition to aircraft.
The national carrier started in 1972 with a vintage Dakota DC-3 aircraft, less than a month after Bangladesh won independence from Pakistan. Its current fleet includes four 25-year-old DC-10 planes which officials say must be replaced in a few years.
Biman travels to 18 countries around the world, but officials hope to offer flights to up to 42 destinations as they map out an aggressive growth plan.