Summary
- Biman Bangladesh is switching from Boeing to Airbus on account of dissatisfaction with Boeing’s wait times.
- The choice is an element of a long-term plan to mitigate risks and forestall weakening of the flag carrier.
- Despite facing financial challenges, Biman is investing in Airbus planes which is able to require extensive training and extra costs and the advantages could also be put into query for the airline.
Bangladesh’s national carrier, Biman Bangladesh, is ready to undergo a drastic switch from its historic aircraft provider, Boeing, to its European rival, Airbus. This move comes amid growing dissatisfaction with the long waiting times involving the American planemaker.
What motivated the switch?
During an interview with the Eurasia Times, Biman’s departing Managing Director and CEO, Shafiul Azim, elaborated on the reasoning behind the choice to make the switch.
“Any company can face bad times at any time. We’re negotiating with Airbus as a part of a long-term plan to make sure we’re not at risk, that our strength doesn’t wane in the longer term, and that we’re not exposed to any risk”.
Azim referred to recent incidents and technical issues with Boeing’s 737 MAX aircraft as a part of the danger they aim to mitigate.
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In January 2024, the management of Biman, the national carrier, decided that acquiring Airbus A350 aircraft wouldn’t be financially advantageous. Nonetheless, 4 months later, the airline reversed its stance and favored purchasing Airbus planes. This sudden shift highlights the dynamic and ever-changing nature of the aviation industry, where airlines must consistently evaluate and adapt to evolving circumstances to make strategic decisions.
This announcement by the board confirms the news that the French government leadership was already unveiled in September 2023.
Photo: Fasttailwind I Shutterstock.
This announcement signifies a big change within the airline’s approach to fleet planning, because it has historically favored Boeing aircraft. Although Biman has previously operated six A310-300s from Airbus, Boeing planes have been predominant within the carrier’s fleet. This move marks a notable shift in Biman’s procurement strategy, and it can be interesting to see how this decision impacts the airline’s operations and plans.
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The route will likely be served thrice per week with the airline’s Dreamliner aircraft.
Will it’s useful for the airline?
Despite making strategic shifts, Biman is facing significant challenges. Within the last fiscal 12 months, the airline lost Tk 25.91 crore in its primary business, flight operations. Biman is experiencing losses on most of its 22 international routes, with profitability limited to flights to Jeddah, Singapore, and Kuala Lumpur.
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It will mark its return to the US. but there are major problems.
Transitioning to a mixed fleet would require significant expenditures. While Biman estimated a price of US$80 million for this transition, Boeing calculated it to be US$146 million. The introduction of Airbus aircraft would require extensive training for brand spanking new crews and engineers, adding to the fee and complexity of the transition. Moreover, Biman must invest US$61.8 million in spare engines and parts for the Airbus planes.
What do you think that of this U-turn for Biman? What configuration would you wish to see on these brand-new airplanes? What destinations would you wish to see on their A350? Tell us your thoughts within the comments.
