Biman's PLC process to go beyond June deadline
Tuesday, 26 June 2007
FE Report
The process of converting the Biman Bangladesh Airlines, the national carrier, into a public limited company (PLC) will go beyond the stipulated time, as the government is not in a position to remove legal tangle by June 30.
"The process will continue … The PLC process can be completed by July instead of the June deadline," adviser to the ministries of communications, shipping and civil aviation MA Matin said Monday.
"It will require more time to amend the related law, while turning the Biman into a PLC. The amendment is inevitable for overhauling the national flag carrier. If other things go well, we'll be able to complete the process by July," Matin told newsmen after a meeting.
The council of advisers Saturday approved a proposal to complete the Biman's PLC process by June 30 and appoint an efficient operator for managing the state-run airliner.
If the Biman Bangladesh Airlines gets the PLC status, it will be renamed Bangladesh Airlines.
In the Monday's meeting, the government has also decided to procure two aircraft on lease for operating hajj flights. The Biman authorities will strike a deal with the Thai Phuket Airlines in this regard.
Talking to newsmen after the meeting, the communications adviser said the lack of sufficient evidence and information is the main reason why the government cannot bring the corrupt within the ambit of law.
Meanwhile, the Biman is pressing forward its plan to bring the manpower-aircraft ratio to a reasonable level to help cut its expenses by 40 to 45 per cent.
The Biman's present manpower-equipment ratio (MER) at 1:367 far exceeds that of the international standard. The Singapore Airlines' MER is 1:152, Malaysian Airlines' MER is 1:146 and Emirates' MER is 1: 294. The internationally acceptable limit of MER is set at 1:200.
Seven out of 13 aircraft of Biman Bangladesh Airlines are now in operation.
Biman officials said the voluntary retirement scheme (VRS) is part of the government's plan to turn the national flag carrier into a public limited company (PLC) and make it a healthy and profitable commercial venture.
Under the VRS scheme, Biman offered special packages to its employees whose service period exceeded five years.
The sources at the Biman noted that the scheme has already drawn response from a significant number of the Biman employees.
Officials said the World Bank has already provided about Tk 2.97 billion with the government to implement the voluntary retirement scheme of the Biman staffers.
Earlier, the draft proposal was finalised at an inter-ministerial meeting. The inter-ministerial meeting also finalised the draft of the memorandum of association and memorandum of articles of the new company while the government would promulgate an ordinance in this regard after approval of the advisory council.
After becoming a public limited company, the airline is expected to enjoy operational freedom, with the government exercising no control over it.
In its overhaul process, the airline will purchase new aircraft or collect aircraft on lease on the basis of the operator's suggestion for reviving the ailing organisation.
In the first phase, the government will hold 100 per cent share of the new company but later up to 49 per cent of its stake share of will be off-loaded, according to the proposal.
Seven to eleven directors -- all from secretary-level government officials -- will operate the company that will be registered with the registrar of joint stock companies afterwards.
Civil aviation secretary Sheikh Altaf Ali, Biman's managing director MA Momen and representatives of the civil aviation and tourism ministry and the Biman were present at the meeting.
The process of converting the Biman Bangladesh Airlines, the national carrier, into a public limited company (PLC) will go beyond the stipulated time, as the government is not in a position to remove legal tangle by June 30.
"The process will continue … The PLC process can be completed by July instead of the June deadline," adviser to the ministries of communications, shipping and civil aviation MA Matin said Monday.
"It will require more time to amend the related law, while turning the Biman into a PLC. The amendment is inevitable for overhauling the national flag carrier. If other things go well, we'll be able to complete the process by July," Matin told newsmen after a meeting.
The council of advisers Saturday approved a proposal to complete the Biman's PLC process by June 30 and appoint an efficient operator for managing the state-run airliner.
If the Biman Bangladesh Airlines gets the PLC status, it will be renamed Bangladesh Airlines.
In the Monday's meeting, the government has also decided to procure two aircraft on lease for operating hajj flights. The Biman authorities will strike a deal with the Thai Phuket Airlines in this regard.
Talking to newsmen after the meeting, the communications adviser said the lack of sufficient evidence and information is the main reason why the government cannot bring the corrupt within the ambit of law.
Meanwhile, the Biman is pressing forward its plan to bring the manpower-aircraft ratio to a reasonable level to help cut its expenses by 40 to 45 per cent.
The Biman's present manpower-equipment ratio (MER) at 1:367 far exceeds that of the international standard. The Singapore Airlines' MER is 1:152, Malaysian Airlines' MER is 1:146 and Emirates' MER is 1: 294. The internationally acceptable limit of MER is set at 1:200.
Seven out of 13 aircraft of Biman Bangladesh Airlines are now in operation.
Biman officials said the voluntary retirement scheme (VRS) is part of the government's plan to turn the national flag carrier into a public limited company (PLC) and make it a healthy and profitable commercial venture.
Under the VRS scheme, Biman offered special packages to its employees whose service period exceeded five years.
The sources at the Biman noted that the scheme has already drawn response from a significant number of the Biman employees.
Officials said the World Bank has already provided about Tk 2.97 billion with the government to implement the voluntary retirement scheme of the Biman staffers.
Earlier, the draft proposal was finalised at an inter-ministerial meeting. The inter-ministerial meeting also finalised the draft of the memorandum of association and memorandum of articles of the new company while the government would promulgate an ordinance in this regard after approval of the advisory council.
After becoming a public limited company, the airline is expected to enjoy operational freedom, with the government exercising no control over it.
In its overhaul process, the airline will purchase new aircraft or collect aircraft on lease on the basis of the operator's suggestion for reviving the ailing organisation.
In the first phase, the government will hold 100 per cent share of the new company but later up to 49 per cent of its stake share of will be off-loaded, according to the proposal.
Seven to eleven directors -- all from secretary-level government officials -- will operate the company that will be registered with the registrar of joint stock companies afterwards.
Civil aviation secretary Sheikh Altaf Ali, Biman's managing director MA Momen and representatives of the civil aviation and tourism ministry and the Biman were present at the meeting.