New MD sees image building as immediate challenge for Biman
Wednesday, 24 September 2008
Mushir Ahmed
New Biman managing director Air commodore Zahed Quddus said he wants to enhance the national carrier's image and make it profitable "as soon as possible".
"Let me do the studies first. But what I can tell you is that my immediate challenge is to increase Biman's image at home and abroad," Quddus, an ex-civil aviation authority chief, said.
Quddus was last week named the first managing director of Biman in its new era as a fully state-controlled public limited company. He replaced top bureaucrat MA Momen who presided over a turbulent time in the 36-year history of the national carrier.
The former air force officer said his short-term priority is to ensure on-time departure of Biman flights and better passengers services.
Biman has earned notoriety for delayed flights and poor services, forcing many of its loyal passengers to switch to foreign airlines.
Quddus said he hopes to make the airlines profitable, at a time when top global airlines were struggling to keep going amid sky-rocketing prices of aviation fuel.
"You have to give Biman the credit that it proudly carries national flag when top airlines around the globe are collapsing," he said, adding he aims to reverse the company's losing streak "as soon as possible".
Biman last year incurred provisional net losses worth Tk 5.48 billion in the 2007-08 fiscal year, according to annual government economic survey, due to age-old energy-inefficient fleet and record jet fuel prices in global market.
The company was seeking strategic partnership with top airlines, he said, echoing comments made by a director of the company last week.
"But any agreement with a strategic partner will have to be win-win. We won't seek any partnership that's not beneficial for Biman," he said.
Biman's attempt to strike a partnership deal with Singapore Airlines, however, fell flat last month, after the South East Asia's biggest carrier politely said no to its offer.
Singapore Airlines spokesman Stephen Forshaw said in a statement that his company was not interested in a partnership with Biman.
"Representatives of Biman have approached us and we have indicated that our focus now is on the business fundamentals in a high-fuel-cost and weaker economic climate," he said.
"We will look at mutually beneficial commercial opportunities, but we will not be moving to take equity and the reasons for that have been explained to Biman."
A local aviation expert said the new Biman chief's most immediate challenge would be to keep Biman afloat until the end of this year.
"It has to bolster its finances by successfully conducting the Hajj flights till the end of the year," independent consultant Imran Asif said.
Hajj flights are one of the most important sources of revenues for the perennially struggling carrier. The hajj flights usually boost its financial health.
Biman sources said the company's cash reserve has fallen to around Tk 600 million at the moment from more than Tk 5.00 billion at the beginning of the year.
He said new Biman MD also faces key long term challenges over soaring fuel bill, financing leased aircraft and increased salaries for pilots.
Asif said under the present business model, it would be impossible for Biman to make net profit unless the government sells its majority stakes to private investors.
"The quicker it is privatised, the better it is for Biman. The caretaker government should have done this during its tenure because it is unlikely that a political government would privatise Biman," he said.
New Biman managing director Air commodore Zahed Quddus said he wants to enhance the national carrier's image and make it profitable "as soon as possible".
"Let me do the studies first. But what I can tell you is that my immediate challenge is to increase Biman's image at home and abroad," Quddus, an ex-civil aviation authority chief, said.
Quddus was last week named the first managing director of Biman in its new era as a fully state-controlled public limited company. He replaced top bureaucrat MA Momen who presided over a turbulent time in the 36-year history of the national carrier.
The former air force officer said his short-term priority is to ensure on-time departure of Biman flights and better passengers services.
Biman has earned notoriety for delayed flights and poor services, forcing many of its loyal passengers to switch to foreign airlines.
Quddus said he hopes to make the airlines profitable, at a time when top global airlines were struggling to keep going amid sky-rocketing prices of aviation fuel.
"You have to give Biman the credit that it proudly carries national flag when top airlines around the globe are collapsing," he said, adding he aims to reverse the company's losing streak "as soon as possible".
Biman last year incurred provisional net losses worth Tk 5.48 billion in the 2007-08 fiscal year, according to annual government economic survey, due to age-old energy-inefficient fleet and record jet fuel prices in global market.
The company was seeking strategic partnership with top airlines, he said, echoing comments made by a director of the company last week.
"But any agreement with a strategic partner will have to be win-win. We won't seek any partnership that's not beneficial for Biman," he said.
Biman's attempt to strike a partnership deal with Singapore Airlines, however, fell flat last month, after the South East Asia's biggest carrier politely said no to its offer.
Singapore Airlines spokesman Stephen Forshaw said in a statement that his company was not interested in a partnership with Biman.
"Representatives of Biman have approached us and we have indicated that our focus now is on the business fundamentals in a high-fuel-cost and weaker economic climate," he said.
"We will look at mutually beneficial commercial opportunities, but we will not be moving to take equity and the reasons for that have been explained to Biman."
A local aviation expert said the new Biman chief's most immediate challenge would be to keep Biman afloat until the end of this year.
"It has to bolster its finances by successfully conducting the Hajj flights till the end of the year," independent consultant Imran Asif said.
Hajj flights are one of the most important sources of revenues for the perennially struggling carrier. The hajj flights usually boost its financial health.
Biman sources said the company's cash reserve has fallen to around Tk 600 million at the moment from more than Tk 5.00 billion at the beginning of the year.
He said new Biman MD also faces key long term challenges over soaring fuel bill, financing leased aircraft and increased salaries for pilots.
Asif said under the present business model, it would be impossible for Biman to make net profit unless the government sells its majority stakes to private investors.
"The quicker it is privatised, the better it is for Biman. The caretaker government should have done this during its tenure because it is unlikely that a political government would privatise Biman," he said.