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Biman\\\'s incoming boss faces image building challenge

Shah Alam Nur | December 18, 2014 00:00:00


Image building of the struggling state carrier Biman remains a challenge as its new foreign boss joins the airlines early next month, analysts said.

Biman Bangladesh Airlines has tapped Kyle Haywood, a South-African-born British citizen, as its next managing director and chief executive officer after the departure of Kevin Steele, the first foreigner to run the airlines. He is expected to take charge on January 05.

Kazi Wahidul Alam, an aviation industry analyst, said the incoming chief executive officer will have to curtail its losses, maintain timely flights schedules and improve passengers' services.

He said the national flag carrier has skilled workforce, but it is not being properly utilised.

He said although Bangladeshis prefer to fly by Biman, it cannot offer optimal services to travellers, leading to the fall in its passengers and losses.

Civil Aviation and Tourism Minister Rashed Khan Menon recently told the parliament that Biman's combined losses in the last three financial years amounted to Tk 10 billion.

He said the carrier's losses increased from Tk 1.9 billion in 2013 fiscal year to Tk 2.10 billion in the financial year 2013-14.

A Biman official said the authority does not have any study on business expansion, which has made it difficult for the carrier to sustain many international routes.

Although the national flag carrier plans to introduce five new international routes including Tokyo and Kungming, it has not carried out any market study.

Currently, Biman flies to 18 international routes such as New Delhi, Yangon, Bangkok, Singapore, Hong Kong, Kuala Lumpur, Dubai, Abu Dhabi, Mascot, Doha, Kuwait, Dummam, Rome, and London.

He said globally, the Biman's current business strategy must be changed to make it a profitable company.

He said reopening of closed routes and improving ground handling services at the airport are also long term challenges of the new Biman boss.

Imran Asif, Chief Executive Officer of Epic Air said if Biman wants to become a profitable organization, it must offload more than 51 per cent share to a private company.

He said many government-owned airlines are managed by the private sector..

"We've seen Biman count losses for years. There's no alternative to private management," he said.

Mr Haywood is now working as the Managing Director (MD) of South African low cost airline fastjet.

Kevin John Steele joined Biman as first foreigner MD and CEO of Biman in March 2013 on a two-year contract as the airline's first foreign MD, but he stepped down after serving only 13 months.

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