Will restructuring do any good to Biman?
Thursday, 24 May 2007
Shahiduzzaman Khan
The government has decided to turn the Biman Bangladesh Airlines into a public limited company to 'help ensure its viable commercial operation'. The decision will, however, allow the state-owned losing entity to halve its 6000-strong manpower by the end of June.
A report published in the FE this week suggested that such a move on the part of the government regarding Biman was long overdue. Successive governments in the past failed to take any firm decision on the Biman and hence, the national flag carrier continued to sustain colossal losses year after year. Its staggering annual losses have reinforced the need for immediate steps to prevent the state-owned entity from going bust.
However, the government directed the authorities concerned to chart out an action plan for rationalising Biman's manpower, restoring its financial health while resolving the problems of fuel supply. The advisers of the interim government insisted that the decision of shedding Biman's manpower should be implemented by June 30 in the light of the recommendations of a high-powered committee tasked with preparing a restructuring roadmap.
In the first phase, some 1,500 officials, employees and workers would be retrenched through "golden handshake" from June.
The government has decided to turn the Biman Bangladesh Airlines into a public limited company to 'help ensure its viable commercial operation'. The decision will, however, allow the state-owned losing entity to halve its 6000-strong manpower by the end of June.
A report published in the FE this week suggested that such a move on the part of the government regarding Biman was long overdue. Successive governments in the past failed to take any firm decision on the Biman and hence, the national flag carrier continued to sustain colossal losses year after year. Its staggering annual losses have reinforced the need for immediate steps to prevent the state-owned entity from going bust.
However, the government directed the authorities concerned to chart out an action plan for rationalising Biman's manpower, restoring its financial health while resolving the problems of fuel supply. The advisers of the interim government insisted that the decision of shedding Biman's manpower should be implemented by June 30 in the light of the recommendations of a high-powered committee tasked with preparing a restructuring roadmap.
In the first phase, some 1,500 officials, employees and workers would be retrenched through "golden handshake" from June.