Biman Signs Deals to Buy 35 Aircraft from Boeing and Airbus
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Biman Bangladesh Airlines has signed agreements to buy 35 aircraft, splitting orders between 25 Boeing and 10 Airbus jets to expand beyond its existing fleet of 19 planes.
The procurement accelerated even as former Civil Aviation and Tourism Minister Afroza Khanam urged an integrated revenue assessment on April 22, just eight days before Biman agreed to purchase 14 Boeing jets.
Biman added 11 more Boeing aircraft on September 23 and signed for 10 Airbus planes on October 7, while facing unpaid claims exceeding Tk 7,000 crore from CAAB and Padma Oil.
Outstanding Dues and Sovereign Risk
The rapid acquisition pipeline contrasts sharply with Biman’s accumulated domestic balance-sheet arrears. The Civil Aviation Authority of Bangladesh (CAAB) holds Tk 5,842.91 crore in outstanding dues and surcharges against the airline as of August, while state-owned Padma Oil reported an additional Tk 1,232.71 crore in unpaid jet fuel bills.
State authorities intend for Biman to finance the purchases through operating cash flow with the government acting as guarantor. Default on those obligations would shift payment liabilities directly to public finances, an exposure compounded by the absence of published route-by-route viability audits.
“The real burden will be in the end borne by the taxpayers of the country,” said Dr Iftekharuzzaman, executive director of Transparency International Bangladesh, citing the absence of financial disclosures and procurement clarity.
“On November 1, Bangladesh’s parliamentary standing committee requested full documentation on the procurement process and historical commercial assessments.”
Fleet Strategy and Consultant Reviews
Fleet planning took place after commercial commitments were already executed. Biman issued a tender on October 25 seeking external consultants to evaluate fleet integration, route profitability, aircraft retirements, and funding structures, setting a submission deadline of November 6.
The procedural sequence reversed standard airline procurement. Former Civil Aviation and Tourism Minister Afroza Khanam had directed the airline on April 22 to compile an integrated operating plan based on route revenues before acquiring aircraft, eight days before Biman signed its first binding contract for 14 Boeing planes. On November 1, Bangladesh’s parliamentary standing committee requested full documentation on the procurement process and historical commercial assessments.
Biman stated that commercial evaluations followed internal rules and governance approvals. The carrier maintained that bringing in third-party advisers would support long-term operational planning rather than compensate for internal technical gaps, though it declined to confirm whether a comprehensive network plan covering all 35 jets existed prior to signing.
Airport Monopoly Terms at Dhaka
Airport operating restrictions negotiated in parallel with the fleet expansion will alter the aviation market across the capital. A draft operating agreement with a Japanese consortium managing Dhaka’s Hazrat Shahjalal International Airport includes a 15-year restriction on competing commercial airport operations within a 100-kilometre radius.
Civil Aviation Minister M Rashiduzzaman Millat confirmed that the government accepted the 100-kilometre zoning condition, maintaining that an additional commercial facility near the capital is unnecessary. The restriction locks regional traffic into a single hub even as CAAB projects passenger traffic at Hazrat Shahjalal International Airport will reach 33 million travelers annually by 2045, exceeding its planned terminal handling capacity of 24 million passengers.
The consultant evaluating Biman’s fleet integration, route economics, and financing structures is scheduled to submit its final assessment on February 15, 2027.
Questions & Answers
Q.How will Biman finance the aircraft purchases given its existing debts?
How will Biman finance the aircraft purchases given its existing debts?
State authorities intend for the airline to fund the purchases using operating cash flow, backed by the government as guarantor. If Biman defaults on these obligations, the payment liabilities will shift directly to public finances, leaving the financial burden to be borne by taxpayers.
Q.What unpaid liabilities does Biman currently owe to domestic state bodies?
What unpaid liabilities does Biman currently owe to domestic state bodies?
The airline faces unpaid claims exceeding Tk 7,000 crore. This balance includes Tk 5,842.91 crore in outstanding dues and surcharges owed to the Civil Aviation Authority of Bangladesh as of August, alongside Tk 1,232.71 crore in unpaid jet fuel bills to state-owned Padma Oil.
Q.Why has the timing of the airline's consultancy review faced scrutiny?
Why has the timing of the airline's consultancy review faced scrutiny?
Biman committed to buying the aircraft before completing commercial evaluations, reversing standard airline procurement procedures. External consultants to assess route profitability, fleet integration, and funding structures were tendered only on 25 October, despite ministerial instructions issued in April to assess route revenues prior to signing deals.
Q.What commercial restrictions will apply to airport operations around Dhaka?
What commercial restrictions will apply to airport operations around Dhaka?
A draft agreement with a Japanese consortium managing Hazrat Shahjalal International Airport enforces a 15-year restriction on competing commercial operations within a 100-kilometre radius. This restriction locks regional traffic into a single hub, even though passenger volumes are projected to exceed the terminal's 24 million annual capacity.
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