Insurer will pay $22.18m to Biman for Dubai accident
Thursday, 12 July 2007
Shakhawat Hossain
Biman Bangladesh Airlines will receive US$ 22.18 million in insurance claim for the aircraft damaged in an accident in Dubai airport last March, official source said.
The Biman authorities decided to accept almost half of the insured value worth $40 million at a board meeting last month after hectic negotiation with AON, the insurance company.
"Biman will accept 'Cash-in-Lieu' amounting to US$ 22,185,932 after adjusting US$100,000 as per insurance deductible policy", said the meeting minutes.
The amount, according to the meeting decision, will be spent on procurement of new aircraft as the number of Biman fleet has come down to 11 from 14 over the past three years without any replacement.
Besides, the board meeting also decided to written off the damaged Biman A310-325 aircraft from its fleet as per insurance settlement with the insurance company.
The Biman, however, obtained the right to sell the damaged aircraft 'as is where is' basis.
The Biman aircraft, carrying 236 passengers, met the accident during take-off after its nose wheel broke down.
Some 27 people were injured because of the mishap that forced the closure of one of the busiest airport for about eight hours.
Biman managing director MA Momen told the board meeting that Biman officials submitted insurance claim and informed the manufacturer -- the Airbus Industrie - after the accident.
The manufacturing company performed on-site survey and damage assessment in March and April and submitted a report to the Biman.
On completion of the inspection, the Airbus submitted a detailed report with two options for the Biman to negotiate with the insurance company.
After evaluating the options, Biman official opted for 'cash-in-lieu' offer that provides the value of repair cost worth $22.18 million, added the Biman MD.
The option also offered Biman the custody of the damaged aircraft.
The Biman has lost three aircraft since 2004 and has not replaced them due to fund shortage.
It lost a DC-10 when it was skidded off the Chittagong Amanat Shah Airport runway in 2005. In 2004, a F-28 was also skidded of the runway in Sylhet Airport.
The present Biman fleet has four DC10-30s, four F-28s, and three A310-300s. The DC 10 and Airbuses operate on the international routes and the F-28 on the domestic and regional routes.
Biman Bangladesh Airlines will receive US$ 22.18 million in insurance claim for the aircraft damaged in an accident in Dubai airport last March, official source said.
The Biman authorities decided to accept almost half of the insured value worth $40 million at a board meeting last month after hectic negotiation with AON, the insurance company.
"Biman will accept 'Cash-in-Lieu' amounting to US$ 22,185,932 after adjusting US$100,000 as per insurance deductible policy", said the meeting minutes.
The amount, according to the meeting decision, will be spent on procurement of new aircraft as the number of Biman fleet has come down to 11 from 14 over the past three years without any replacement.
Besides, the board meeting also decided to written off the damaged Biman A310-325 aircraft from its fleet as per insurance settlement with the insurance company.
The Biman, however, obtained the right to sell the damaged aircraft 'as is where is' basis.
The Biman aircraft, carrying 236 passengers, met the accident during take-off after its nose wheel broke down.
Some 27 people were injured because of the mishap that forced the closure of one of the busiest airport for about eight hours.
Biman managing director MA Momen told the board meeting that Biman officials submitted insurance claim and informed the manufacturer -- the Airbus Industrie - after the accident.
The manufacturing company performed on-site survey and damage assessment in March and April and submitted a report to the Biman.
On completion of the inspection, the Airbus submitted a detailed report with two options for the Biman to negotiate with the insurance company.
After evaluating the options, Biman official opted for 'cash-in-lieu' offer that provides the value of repair cost worth $22.18 million, added the Biman MD.
The option also offered Biman the custody of the damaged aircraft.
The Biman has lost three aircraft since 2004 and has not replaced them due to fund shortage.
It lost a DC-10 when it was skidded off the Chittagong Amanat Shah Airport runway in 2005. In 2004, a F-28 was also skidded of the runway in Sylhet Airport.
The present Biman fleet has four DC10-30s, four F-28s, and three A310-300s. The DC 10 and Airbuses operate on the international routes and the F-28 on the domestic and regional routes.