Biman dreams of flying farther, buying 26 new aircraft by 2034

In view of a surge in international air travel and competition from foreign airlines, Biman Bangladesh Airlines, the country's national carrier, is all set to execute a decade-long ambitious plan that involves purchasing at least 26 new aircraft and route expansion.

Biman's fleet would grow from existing 21 to 47 aircraft by 2034, marking a 122% growth, according to the new plan recently approved by the Biman Board of Directors.

The fleet will see the addition of at least eight aircraft with 300 seats, six with 270 seats, six with 160 seats, four with 70 seats, and one with 400 seats.

With their addition, Biman's seating capacity will more than double, exceeding the current capacity of 5,000 passengers per day.

Aligned with the government's objective of transforming Bangladesh into an aviation hub, Biman wants to broaden its reach through new aircraft on new routes, including Australia and New York.

Shafiul Azim, managing director and CEO of Biman, told TBS, "The 10-year fleet and route expansion plan has been under consideration for several years. It was approved during the 300th board meeting, held recently. The plan can be revised at any time."

"We plan to add two to three aircraft into the fleet annually. The routes are already mapped out, we just need to initiate operations," he said.

Biman sources indicate that the company is actively assessing proposals from both Airbus and Boeing for acquiring new aircraft. This suggests a move towards fleet diversification for Biman, which is currently dominated by Boeing aircraft.

The national flag carrier has primarily decided to buy 10 Airbus A350 widebody planes, including two cargo freighters, from Airbus, following a proposal from the European manufacturing giant. It also formed a techno-financial committee on 5 March to evaluate the purchase offer. 

Following Airbus, its global competitor Boeing has also presented its new proposal to the airline.

"The major advantage lies in avoiding upfront cash payments for aircraft purchases. Previously, we made regular instalments for purchased aircraft. Even with new purchases, it remains the same," said Shafiul Azim.

The Biman MD stressed the necessity of acquiring new aircraft to remain competitive in the aviation market. "While we sit idle, neighbouring countries like India, Thailand, and Vietnam are rapidly expanding their fleets, targeting our market," he said.

Currently, local airlines, including Biman, secure only 20%–25% of the aviation sector's business in the country, with foreign carriers dominating the remaining share.

With a notable surge in international passenger numbers, the national carrier, along with several other local airlines, is gearing up to harness the business opportunities by competing with foreign carriers.

According to the Civil Aviation Authority of Bangladesh, the country's airports witnessed a record-breaking 17.4 million air passengers last year, with a majority being international travellers, indicating a nearly 23.4% year-on-year growth.

The count of international passengers, encompassing both Bangladeshis and foreign nationals, surged by approximately 2.67 million in 2023, reflecting a 30% increase from the previous year and a 37% rise compared to the pre-COVID-19 period.

Sector insiders attributed the growth of air travel to and from Bangladesh to factors such as record labour exports, rising educational migration, outbound medical and leisure tourism, and business travel.

A massive Tk32,000 crore investment in airport development, including a brand new third terminal for the Dhaka airport, is creating exciting opportunities for Biman. 

This infrastructure boom is fueling the airline's ambitions to expand its network across South Asia, Southeast Asia, the Middle East, and even Europe.

New routes coming

Currently, Biman operates flights on 22 international routes covering three continents: North America, Europe, and Asia. The airline is now preparing to start operations in Australia.

Biman MD Shafiul Azim said, "Dhaka to Vietnam/Korea via Narita, a city on the eastern outskirts of Tokyo, Japan, could be a new route. Dhaka-Indonesia-Sydney is being considered as a new route, with preparations already in progress for a route to New York."

He further mentioned plans to expand routes in the future, including destinations like Male, Sydney, Kunming, Yangon, and New York. Additionally, arrangements are being made for code-sharing with Bahrain.

Code sharing is a marketing arrangement in which an airline places its designator code on a flight operated by another airline, and sells tickets for that flight.

Over the past two years, Biman initiated flight operations to Toronto in Canada, Narita in Japan, and Guangzhou in China. A direct flight to Rome, Italy, commenced on 27 March.

From configuration to cost of Airbus aircraft

The Airbus A220, featuring a capacity of 100-150 seats and a 2-3 economy configuration, was engineered to offer a wide body experience. It comes in two variations, each with distinct list prices.

According to Simple Flying, an international aviation news portal, the smaller A220-100 is estimated to cost around $81 million, whereas the larger and more sought-after A220-300 is priced at $91.5 million.

The Airbus A320 family of aircraft are best suited for short to medium-haul flights and can carry between 100 and 240 passengers. They are designed to compete against the Boeing 737 series in the commercial aircraft market.

At list price, the A320ceo is priced at $101 million, while the A320neo is listed at $110.6 million.

The smallest and rarest of the Airbus A320 family, the A318, is also the cheapest of Airbus' offerings. The plane, known as the Baby Bus, has a list price of $77.5 million.

Biman MD Shafiul Azim said there is a global standard practice for airline acquisitions. Aircraft are typically not purchased outright with cash; instead, regular instalments are made, particularly for those acquired from Boeing. 

Azim said financing is arranged through a bank, emphasising that this arrangement differs from a conventional loan. Both the bank and the aircraft manufacturing company are parties to the agreement.

"Currently, we are managing the instalments for our existing aircraft. Last year, Biman settled full instalments for two aircraft," he added.