Biman to say goodbye to fuel-guzzling DC-10s
Monday, 24 May 2010
Mashiur Rahaman
Biman has readied a plan to get rid of its gas-guzzling and glitch-prone four DC-10 aircraft starting from end of this year as part of an effort to make the airline lean and profitable, its chairman said.
The national carrier bought the loss making aircraft in three phases in the early 1980s and the 1990s to fly them in mid and long-distance routes, hoping that their service would make Biman a top airline in the region.
Instead, the four aircraft have proved to be a thorn in Biman's side, frequently sending the airline's schedule to haywire and costing it millions of extra dollars in terms of delays, repairs and technical faults.
Company chairman told the FE last week that Biman had finally adopted a plan to say goodbye to the aircraft, replacing them with two Boeing 777-200 and two new Boeing 777-300ER aircraft.
"With the four aircraft's addition to our fleet, we would retire all DC-10s. One of them has already been grounded," Air vice marshall Jamal Uddin Ahmed said.
Mr. Jamal said the airline has planned to lease the two Boeing 777-200 from US-based aircraft leasing company Palm by end of this year while Boeing will supply two brand-new 777-300ER by October 2011.
Biman signed a US$1.26 billion purchase deal with Boeing in 2008 under which the US plane maker will supply four 777-300ERs and four 787-800s aircraft beginning from late next year.
Biman chairman said DC-10s' frequent technical problems have muddied Biman's image and left gaping holes in Biman's balance sheets.
"It has been difficult for Biman to maintain flight schedule with the DC-10s, each of which is aged over 30. Because of their old-age they burn more fuel than other aircraft," Jamal said.
"We have finally worked out a plan to send them into retirement," he said.
The first of the two DC-10-30s were procured by general Ershad's administration in early 1980s just years after their manufacturer, MacDonald Douglas, folded up.
Their joining with Biman's fleet was hailed as a new dawn for the national carrier, which has been one of the smallest in Asia.
Two more 380-seater DC-10 were bought through lease-to-purchase deals by the company in 1990s as part of Biman's expansion drive in the Middle East, Europe and the South East Asia.
Experts said all four have hobbled since their acquisition, causing numerous maintenance and technical problems that led to years of losses by the state-owned carrier in the 1990s and early this decade.
According to the company's maintenance department, during the last two months alone the aircraft suffered at least three major technical faults, disrupting schedule by delaying or halting flights.
Thanks to their old-age, they were proved to be gas-guzzling, causing havocs to Biman's financial health during the years of high oil price.
Fuel accounts for some 60 per cent of Biman's budget, but in case of DC-10s, fuel eats up 70 per cent of the cost, said aviation expert Imran Asif.
"Biman paid heavy price due to DC-10s' high fuel cost. In terms of reliability, the DC-10s are OK, but in an age of efficient and environmental friendly air travel, these aircraft are mis-fits," Asif said.
"They can damage financial health of an airline. The aircraft also does not have re-sale value. These days they are treated like scraps in the aviation industry," he added.
Officials, however, said the over-aged aircraft paid some dividend in recent years, especially in 2005 when the carrier made profits thanks to their cost-effective performance.
"There is no question that DC-10s burn more fuel. But they are profitable than the aircraft we leased from international companies," said a Biman official.
The DC-10s aside, the national carrier currently owns four Fokker F28s and three Airbus A310-300s.
Biman has readied a plan to get rid of its gas-guzzling and glitch-prone four DC-10 aircraft starting from end of this year as part of an effort to make the airline lean and profitable, its chairman said.
The national carrier bought the loss making aircraft in three phases in the early 1980s and the 1990s to fly them in mid and long-distance routes, hoping that their service would make Biman a top airline in the region.
Instead, the four aircraft have proved to be a thorn in Biman's side, frequently sending the airline's schedule to haywire and costing it millions of extra dollars in terms of delays, repairs and technical faults.
Company chairman told the FE last week that Biman had finally adopted a plan to say goodbye to the aircraft, replacing them with two Boeing 777-200 and two new Boeing 777-300ER aircraft.
"With the four aircraft's addition to our fleet, we would retire all DC-10s. One of them has already been grounded," Air vice marshall Jamal Uddin Ahmed said.
Mr. Jamal said the airline has planned to lease the two Boeing 777-200 from US-based aircraft leasing company Palm by end of this year while Boeing will supply two brand-new 777-300ER by October 2011.
Biman signed a US$1.26 billion purchase deal with Boeing in 2008 under which the US plane maker will supply four 777-300ERs and four 787-800s aircraft beginning from late next year.
Biman chairman said DC-10s' frequent technical problems have muddied Biman's image and left gaping holes in Biman's balance sheets.
"It has been difficult for Biman to maintain flight schedule with the DC-10s, each of which is aged over 30. Because of their old-age they burn more fuel than other aircraft," Jamal said.
"We have finally worked out a plan to send them into retirement," he said.
The first of the two DC-10-30s were procured by general Ershad's administration in early 1980s just years after their manufacturer, MacDonald Douglas, folded up.
Their joining with Biman's fleet was hailed as a new dawn for the national carrier, which has been one of the smallest in Asia.
Two more 380-seater DC-10 were bought through lease-to-purchase deals by the company in 1990s as part of Biman's expansion drive in the Middle East, Europe and the South East Asia.
Experts said all four have hobbled since their acquisition, causing numerous maintenance and technical problems that led to years of losses by the state-owned carrier in the 1990s and early this decade.
According to the company's maintenance department, during the last two months alone the aircraft suffered at least three major technical faults, disrupting schedule by delaying or halting flights.
Thanks to their old-age, they were proved to be gas-guzzling, causing havocs to Biman's financial health during the years of high oil price.
Fuel accounts for some 60 per cent of Biman's budget, but in case of DC-10s, fuel eats up 70 per cent of the cost, said aviation expert Imran Asif.
"Biman paid heavy price due to DC-10s' high fuel cost. In terms of reliability, the DC-10s are OK, but in an age of efficient and environmental friendly air travel, these aircraft are mis-fits," Asif said.
"They can damage financial health of an airline. The aircraft also does not have re-sale value. These days they are treated like scraps in the aviation industry," he added.
Officials, however, said the over-aged aircraft paid some dividend in recent years, especially in 2005 when the carrier made profits thanks to their cost-effective performance.
"There is no question that DC-10s burn more fuel. But they are profitable than the aircraft we leased from international companies," said a Biman official.
The DC-10s aside, the national carrier currently owns four Fokker F28s and three Airbus A310-300s.