Does Biman have a future?

Air Vice Marshal M Rafiqul Islam

BIMAN is the flag carrier airline of Bangladesh and has been in existence for 35 years. For most of these years it posted a loss. Occasionally, it did make profit but marginally so. Once Biman's advertisements would proudly proclaim that the world is getting smaller; today it is downsizing its network in a bid for survival and the caretaker government has decided to make Biman a public limited company (PLC). It is a major decision for Biman but surprisingly there was a muted response in the press and from critics who usually are quite vocal. There can be two explanations for this; one, they consider Biman beyond salvation and the other could be that the government is not serious and this exercise will not be successful. In any case, no one felt any interest in the future of Biman or else they were unable to appreciate or were not convinced how being a PLC fully owned by the state is any different from the current status and how it would turn Biman around. I would humbly request the government to provide details of how they do plan to make Biman efficient, competitive, increase sales and turn profit.

When one generally compares Biman with other airlines, the common parameters are the balance sheet, management/skill level of the workforce, remuneration, safety record and image. Biman does not score high on any of these and the image has taken a battering. All previous attempts to bring about changes did not bear fruit because of resistance from within the organisation. Everyone in Biman starting from the loaders to the union bosses and senior executives had a partial remedy for Biman's woes but nothing worthwhile ever materialised. A previous effort made with the World Bank (WB) support fell victim to the unions' so-called know-all attitude that it would not be in the best interest of Biman and the country. A case of misplaced patriotism! Several years on, they are older and wiser but Biman is no better; it has slipped further into debt and crisis. The recent efforts by Biman to downsize its workforce were a courageous step and the management deserves applause. I hope that this was worked out rationally and not at random or due to other considerations. Reductions in number of flights would make some part of the workforce redundant but not necessarily efficient. Rationalisation of Biman's destinations and number of flights in keeping with the current fleet has to some extent brought discipline in Biman's schedule. Is this enough? Are these isolated steps or are they a part of a grand plan?

An airline's biggest asset is it's image.  It is in the motivation and morale which are now on the low side. The opinions vary widely about the reasons for this but all agree that they were never sufficiently addressed. Motivation without comparative remuneration does not stay at a high level for very long. The remuneration for Biman's employees in comparison with other airlines is fairly low and as soon as the job becomes permanent, the work force in general lapses into mediocrity. The skill level in Biman is comparable with other established airlines but some malpractices have developed over the years and this has adversely affected the performance. Moreover, airlines all over the world are largely software dependent but Biman has lagged behind and the flow of timely information is slow and not always easily accessible to all. The most common complaint about Biman is that the flight is full but after getting on board, one finds many seats empty. Even on a full flight, it is possible to get a seat if you know the right people or the right art. The trade unions of Biman have grown on political lines and try to influence decisions, postings and promotions. They have also given Biman a bad image.

Most of Biman's operations are beyond the national boundaries and the major part of its revenue earnings are from its international operations. The domestic operations form a small part of overall operations. With increasing number of airlines operating to Bangladesh and competition increasing, Biman does not enjoy home turf advantage any more. Passengers have choice, they are increasingly more discerning and Biman is usually not the first or even the second choice. The quality of service has suffered at all levels, service on ground and in the air. Because Biman has been a losing concern for most of its life, it does not even generate enough interest among the board members with the exception of a few. They have little time for a full detailed review of Biman's activities year on year.

The Biman Board takes a lot of decisions but in matters of purchase, it has to follow the government rules especially for major purchases like aircraft and engines. Often decisions referred to the government linger and these are made by individuals who understand little about airlines and the urgency. The delay is not deliberate and oftentimes with good intention but the process is lengthy and becomes costly and oftentimes creates problems later.    Biman is a corporation but that is not sufficient to make it competitive. Biman still bears all the trappings of a government-controlled entity which is hardly suitable for an airline. Here, a lot of delegation has to be done but with delegation comes the possibility of misuse so there has to be a sets of checks and balances. In Biman these set of checks and balances are not oriented to maintain a dynamic business environment. They are bureaucratic in nature and often discourages imitative. This culture permeates through the entire organisation. 

For Biman to be profitable airline, there has to be a strategy suitable for Biman to compete with other airlines and a overhauling of the top management. The management must have the freedom to plan and execute and if it has to remain in the public sector, the board members should be carefully chosen so that they are committed and spare enough time to give policy guidelines, oversee the affairs and hold the management accountable. The rationalising of the fleet, manpower strength and distribution and a corporate vision must be drawn up so that goals of departments can be drawn up. Any attempt to privatise Biman will face opposition but there is no second option.

To create an efficient and dynamic airline, Biman has to reinvent itself, shed off the extra fat, take advantage of information technology (IT) to create a modern workplace conducive to efficient management and availability of real-time information. A system of accountability and flow of information throughout the organisation is crucial for its well-being and Biman is lacking in this regard.

Ironically, anybody and everybody whether in Biman or not has an opinion on the solution to Biman's ills. With all the goodwill and criticism of Biman, sometimes individuals, influential ones, late to catch a flight call up to delay it until their arrival and people in Biman oblige, lest their promotion or posting is affected. Sometimes, people within Biman go out of their way to please influential individuals so that they can get a good posting or promotion. The unions have developed on political lines and patronage and this has always done more bad than good. The total culture at the workplace needs a drastic change. The private sector airlines have profited from Biman's ineptness and they and the foreign airlines have increased frequencies and cut deep into Biman's market share.

Everybody agrees that something has to be done about Biman and for almost a decade, the government has been toying with the idea of privatisation of Biman. Offloading shares in the local market is an option but is hardly expected to be a solution as it is unlikely to guarantee an efficient management. Hiring outside management could be a solution if there is a strong backing from the government. As a short term measure, it may succeed but Biman needs something for the long term. Offloading shares to a reputed airline that would have management control is also an option but it would be difficult to find interested parties unless a strong drive is taken by a team of well connected and reputed individuals and backing from the government. A similar attempt floundered in the past. Reforms and restructuring have become a crying need and Biman today is possibly more receptive to reforms than at any other time in the past. Some may say that it is already late but hopefully not too late.

In the current circumstances, this caretaker government is possibly best placed to tackle the issue. They have shown considerable determination and should now turn their attention to Biman. There are parts of Biman which are profitable but overall it is in loss and is in crying need for reform Making Biman a public limited company is not going to be easy and it can only succeed if the caretaker government is serious, committed and stays long enough to see it through. What happens after the caretaker government is gone is a question we can leave for later. For now, let us save Biman, once the proud flag bearer of Bangladesh in three continents.

The writer is former Chief of Air Staff, Bangladesh Air Force and former Managing Director of Bangladesh Biman