Bangladesh News Bangladesh plans to buy aircraft from Airbus

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Bangladesh plans to purchase new commercial aircraft from Airbus, a Netherlands-based multinational aerospace company, in order to bolster the fleet of Biman Bangladesh Airlines and thereby tap into the growing aviation industry.

"We definitely have plans to buy aircraft from Airbus to increase the size of Biman's fleet and we are working on it," said M Mahbub Ali, the state minister for civil aviation.

However, he did not elaborate on how many planes would be bought or when.

Ali was speaking to reporters after the first-ever Bangladesh Aviation Summit, organised by the Ministry of Civil Aviation and Tourism in collaboration with its France and UK counterparts at a city hotel in Dhaka yesterday.

He went on to say that while Airbus previously submitted proposals for selling aircraft to Biman, the matter was brought up again during the summit.

Emerging from the inaugural session, Shafiul Azim, managing director and CEO of Biman, said discussions are being held with Airbus to this end.

"If it helps meet our requirements, then why not [buy aircraft from Airbus]?" he added.

According to aviation experts, Biman now boasts one of the youngest fleets in Asia with 21 modern aircraft comprised of four Boeing 777-300 ER, four Boeing 787-8, two Boeing 787-9, six Boeing 737-800, and five De Havilland Canada DHC-8 Q400.

Biman owns 18 of the 21 planes while the remaining five are operated on lease.

To bolster its fleet after becoming a public limited company in 2007, Biman went on a shopping spree the following year, spending around Tk 19,020 crore on new planes.

In 2008, Biman had inked a deal with Boeing for purchasing 10 brand new planes, including the four 787-8 aircraft. Later, two 787-9 were also purchased from the American multinational aerospace company.

All 12 of the aircraft were delivered by 2019.

Since 2000, the number of air passengers has increased at an annual rate of 9.1 per cent on average, as per data from the Civil Aviation Authority of Bangladesh.

Some 1.3 million people in the country opted to travel by air that year while the number jumped to about 6 million in 2020.

As such, the aviation market has almost doubled with passenger and cargo transportation growing by about 10 per cent annually over the past 10 years, according to the aviation ministry.

With this backdrop, aviation in Bangladesh is expected to almost triple over the next 15 years.

Currently, the number of air passengers in the country stands at eight million while it is expected to reach 16 million by 2035.

In a written speech at the programme, Ali said that along with the country's socioeconomic development, its civil aviation sector has undergone massive changes in the last 14 years.

And to ensure that passengers are provided with services of international standard while also sustaining the current growth trend of the aviation industry, the present government is implementing various development works along with formulating timely laws and policies.

Work is also underway to ensure the timely expansion of aviation infrastructure across the country, increase passenger services, improve technical and public skills and ensure safe and smooth air navigation.

Besides that, fleet modernisation of Biman Bangladesh Airlines is ongoing.

"In this era of globalisation, it is not possible to achieve the desired goal of development alone in a high-tech industry like aviation as this requires the exchange of technology, research and services," Ali said.

"The UK and France, whose cooperation we received earlier, are interested to support our aviation industry. So, I hope to see them in the future to help develop our aviation," he added.

In his speech, Salman F Rahman, the prime minister's adviser on private industry and investment, said the proposed partnership and collaboration with Airbus will undoubtedly accelerate growth in the local aviation sector. This includes cooperation in areas such as trading, infrastructure development, maintenance, repair and overall service.

He also said Airbus emphasised that it is not only interested in selling aircraft to Bangladesh as the company is keener on transferring technologies and providing training.

Rushanara Ali, trade envoy of the prime minister of the UK to Bangladesh, also spoke at the programme.

Among others, Marie Masdupuy, ambassador of France to Bangladesh, Robert Chatterton Dickson, the British high commissioner to Bangladesh, Mokammel Hossain, secretary of the aviation ministry, Remi Maillard, president and managing director of Airbus India and South Asia, were present.


French aerospace firm Airbus has come up with several proposals, including sales of jets and an aviation partnership with the UK and France, to the Bangladesh government.

Discussions with Airbus took centre stage on Wednesday at the Bangladesh Aviation Summit, organised jointly by the Ministry of Civil Aviation and Tourism, the British High Commission and Embassy of France in Dhaka.

“We’re thinking about buying Airbus jets. The summit today also reflected that. But it’s tough to say how many we’ll buy yet due to the ongoing economic crisis,” said State Minister for Civil Aviation and Tourism Mahbub Ali.

The programme set off with a video message from Prime Minister Sheikh Hasina at InterContinental Dhaka.

“The proposal of a partnership with the UK and France through Airbus is crucial for our aviation sector. We need to make a roadmap that takes advantage of our geographical position and turn Bangladesh into an aviation hub.”

British Prime Minister's Trade Envoy for Bangladesh Rushanara Ali said the UK is committed to providing “strong support” to the Airbus proposals.

The Bangladesh Biman fleet currently consists of 21 aircraft -- 10 suppressor Boeing, six narrow-body Boeing 737s and five Dash 8 jets. Biman used Airbus jets before but no longer has them.

Rolls Royce, who make jet engines, and Menzies Aviation, handlers of ground and cargo services at airports, also took part in the summit.

 

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‘We want to find the potential as to whether Airbus can set up its plant in Bangladesh,’ he added.

 

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Why not ?

My opinion, Eurofighter.
If they can afford to buy 10 aircrafts from AIRBUS they can definitely afford 16 Typhoon.
But nothing yet.
 

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Salman F Rahman, Prime Minister's Private Industry and Investment Adviser, has said the Airbus aviation deal was signed to address the current shortage of aircraft of the state-owned Biman Bangladesh Airlines.

"There are demands for more flights on the Dhaka-Sylhet-London route. Chattogram residents also want direct flights to London and the Middle East. But the demands could not be met due to aircraft shortage," said the adviser in an interview during his recent visit to the UK.

He said there are many routes which cannot be used due to an insufficient number of aircraft.

On 5 May, Bangladesh struck the deal with the UK to purchase passenger and cargo aircraft from European aviation giant Airbus.

Under the aviation cooperation deal, he said, Airbus will also establish an aviation university in Bangladesh and train Bangladeshis as discussed in a recent summit in London.

In response to criticism about the Airbus deal, Salman F Rahman said, "There were criticisms even when we launched the Dhaka-Toronto flight. People said the route would not last long. But the reality is that Dhaka-Toronto has become the most profitable route for Biman."

He said, "If we can do business purchasing aircraft after taking credit, what's wrong with that?"

In defense of the Airbus deal to purchase cargo planes, Salman F Rahman said Biman has no cargo flights.

"Expats living in London and the Middle East demand cargo flights to get perishable items such as fresh vegetables from Bangladesh. Also, our garment factories are dependent on foreign airlines to deliver their orders.That is why we decided to purchase cargo aircraft in addition to passenger planes from Airbus."

He also mentioned that Biman is all set to launch Dhaka-New York flights.

 

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The US aeroplane manufacturer Boeing in a press conference in Dhaka on Wednesday recalled its 50 years of partnership with Bangladesh and said that it was looking for more engagement in the days to come.

David Schulte, a managing director for marketing for Asia Pacific and India at Boeing, and other senior executives attended the press conference as the Bangladesh government, in its election year, was considering a ‘techno-financial evaluation’ for a possible procurement of 10 aircraft from European aircraft manufacturer Airbus for the Boeing-dominated national flag carrier.

On May 5, the British and Bangladesh governments signed a non-binding ‘joint communiqué’ to proceed towards signing a memorandum of understanding in this regard.

Five days later, the Boeing delegation in a city hotel argued that the inclusion of Airbus aircraft in Biman’s fleet would require additional investment due to different types of spare parts, tooling, engine spares, spare engines, and pilot training requirements.

Schulte said that it would require two additional sets of pilots, crews, and engineers, among others, when an airline with a small fleet depended on multiple manufacturers.

Buying five 787s aircraft and five Airbus 350 Airbuses is a complex solution, and complex fleets cost more, he said.

He said that they were celebrating 50 years of collaboration as the Boeing 707 was inducted into the Biman fleet in 1972, and Boeing would celebrate in the next five years of Boeing 787 operations in Bangladesh.

Asked whether Boeing was losing its market share in Bangladesh, Schulte, without giving any specific answer, said that they were looking to engage more with Bangladesh in the days to come.

Pointing out that Biman Bangladesh Airlines has a small fleet of 21 aircraft, David said Biman could get a simple solution by introducing a common fleet of Boeing 787s.

He said that the aviation projection in Bangladesh depends on the existing annual economic growth of the country.

Biman now has 21 aircraft - four Boeing 777-300ERs, four Boeing 787-8s, two Boeing 787-9s, six Boeing 737-800s, and five De Havilland Canada DHC-8 Q400s.

Of the 21, Biman owns 18 aircraft, and five are operating on lease.

Kevin Yoo, a senior executive for international sales for Asia Pacific and India, said that they were also facilitating Bangladesh getting category one status in the United States to resume Dhaka-New York direct flights.

To meet strong demand for passenger travel and air cargo, Boeing anticipates South Asia’s carriers will need more than 2,300 new commercial aeroplanes over the next 20 years, more than tripling South Asia’s current in-service fleet of 700 aeroplanes.

‘We see tremendous opportunity in South Asia, with more than 80 per cent of new deliveries supporting air-travel growth and 20 per cent replacing older, less fuel-efficient aeroplanes,’ said Schulte.

Single-aisle aeroplanes like the Boeing 737 family would make up nearly 90 per cent of South Asia’s future fleet, while 10 per cent of the regional fleet would be wide-body aeroplanes like the Boeing 787 Dreamliner.

On May 5, Salman Fazlur Rahman, the prime minister’s private industry and investment adviser, said that Bangladesh’s relations with the UK, France, Germany, and the European Union would get a further boost with the initiative (of adding Airbus to the Biman fleet) and that the aviation industry of Bangladesh would be developed, according to a press statement.

Biman managing director and chief executive officer Shafiul Azim told New Age on Wednesday that Boeing held no meeting with them on this trip, though they have a long-term partnership.

Abdul Momen, who served as the Biman managing director between 2006 and 2009, told New Age that Biman should first evaluate the viability of such procurement as aircraft diversification might incur losses for a small fleet like Biman.


Boeing and Airbus are now in a battle over the aircraft market in Bangladesh.

After Biman Board of Directors on May 3 approved in principle to purchase 10 aircraft, including two freighters, from European plane maker Airbus, US aircraft manufacturing company Boeing held a press conference in Dhaka yesterday to say that Biman should keep its fleet and operations simple and costs down by using Boeing planes only.

A delegation of Boeing at the press conference in a hotel argued that including Airbus planes in Biman's fleet will increase the national flag carrier's expenses due to different types of spare parts, tooling, engine spares, spare engines, and pilot training requirements.

Head of the delegation, Boeing's managing director (commercial marketing) for Asia Pacific and India, David Schulte said Biman has a small fleet of 21 planes.

He said buying 10 Boeing 787s is the simple solution and buying five Boeing 787s and five Airbus A350s is the complex solution.

He said a complex fleet costs more.

Biman now has four Boeing 777-300 ERs, four Boeing 787-8s, two Boeing 787-9s, six Boeing 737-800s, and five De Havilland Canada Dash-8 Q400, which are short-haul turboprops.

Boeing predicted that driven by the country's growing population, expanding economy and the middle class, air travel will double in Bangladesh over the next decade.

The plane maker provided details about the increasing demand in its Commercial Market Outlook, a yearly forecast of global and regional plane demand.

Bangladesh is expected to have annual air-traffic growth of nearly 8.5 percent, according to Boeing.

To meet strong demand for passenger travel and freight, Boeing anticipates South Asian carriers will need more than 2,300 new planes over the next 20 years, tripling the number of planes now in operation.

Single-aisle planes, like the Boeing 737, will make up nearly 90 percent of South Asia's future fleet.

"Boeing planes have played a tremendous role in the rapid growth of commercial aviation in Bangladesh. Commonality across the fleet will continue to play a major role in furthering growth, especially as it enables our airline customers to reduce operating costs and expenditures associated with training and maintenance," said Schulte.

The US plane maker fears losing its strong grip on the Bangladeshi market as the local carriers are mulling planes of arch-rival Airbus.

Besides Biman, Boeing planes dominate the fleet of US-Bangla. The private carrier is set to add Airbus A330 aircraft to its fleet.

Novoair is planning to add Airbus planes to its current turboprop-only fleet.

Asked why the Boeing is losing its market share in Bangladesh, Schulte, not giving a direct answer, said Boeing was looking to engage more with Bangladesh in the days to come.

He said Boeing is in talks with Biman.

Biman's top management had said they were buying 10 new Airbus planes, including two freighters, to expand international routes and carry cargo.

Aviation experts have said Biman's decision to have a mixed fleet was puzzling as it would cause cost escalation. They said buying new freighters will not be economically viable.

Bangladesh Prime Minister's Private Industry and Investment Adviser Salman F Rahman and UK's Investment Minister Lord Dominic Johnson recently signed the agreement for the 10 Airbus planes on behalf of their respective sides in London.

However, Biman Managing Director and CEO Shafiul Azim said the deal with Airbus is at a very preliminary stage. Nothing is set in stone. Biman is checking out the market and it will pick the planes that suit it best.

 

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Well, shifting from Boeing to Airbus certainly looks bad at first with increased cost, we could've just deal with US other way like not giving them any future contract for our weapons and other stuffs. (Though that works this way too)

But if we continue to have bad relation with a country then we need to look for an alternative, nothing's wrong with that. We're already doing it with China. We're not operating any cargo from Boeing so buying cargo from Airbus could be good chance to let our pilot be familiar with the aircraft for future order. Biman also operates Dash 8 so don't see why can't get a new platform though it'll be challenging. But looks like Boeing cargo is way better than Airbus. Am I missing something?
 

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According to the previous plan, the airline would have purchased Boeing 777, 787-8 and 787-9, 737-800 and Dash 8-400 aircraft in the next 10 years. But this plan did not proceed due to government decisions.

Now Biman is looking to procure 10 new aircraft, including two cargo freighters, from the European aircraft manufacturer Airbus. Bangladesh will get long-term loan facilities on soft terms under the UK Export Finance scheme to purchase the freighters.

Aviation experts have questioned whether the purchase of the aircraft is a prudent decision if the current Biman fleet is not being used to its full potential.

According to different sources, the airline will increase the number of flights on international and domestic routes, and the plan to purchase the two cargo Airbuses may be actualized by 2027.

The plan had been put forward without doing any market research on the routes to assess passenger and cargo demand, the aviation industry sources claimed.

There was no revenue plan, fund figures, or analysis of crew requirements either, they added.

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According to Civil Aviation Authority of Bangladesh (CAAB) data, Biman used only 76% of its fleet capacity in the 2021-2022 fiscal year.

Meanwhile, Biman transported 26,000 tons of goods using only 6% of its capacity in the same fiscal year. It currently uses the vaults of passenger aircraft for carrying goods, as it does not have dedicated cargo freighters.

Opinions of experts​

A planned purchase of aircraft would be commercially viable for any airline to increase capacity, an industry insider said.

“However, our observation is that those who lead the airline are always from a bureaucratic background and lack the expertise to make plans with aviation business in mind,” added aviation expert Kazi Wahidul Alam, a former member of the Biman board of directors.

“They make plans, taking advice from dishonest and corrupt airline officials, which ultimately results in financial losses for Biman,” said the expert.

Other aviation experts termed the decision unprofessional as it lacked revenue assessment. They said to pursue it would be suicidal for Biman.

In 2008, Biman purchased 10 aircraft from the Boeing Company to increase the number of passenger flights to New York and destinations in Europe. It later had to stop operating flights to New York while the European dream never materialized.

Moreover, the carrier's slots (landing permits) were cancelled by the Chinese civil aviation administration within six months of the inauguration of flight operations on the Guangzhou route. Lacking a proper plan, Biman is now using long-range aircraft on short routes, which is reducing their lifespan.

Experts questioned how and where Biman would use long-haul Airbus A350s if it did purchase them, suggesting the airline first study and find out its present potential.

One expert said the purchase of Airbus might be a political decision by the government.

“The authorities have to put business first. Biman's fleet size is small and operating aircraft from different manufacturers would cause Biman to suffer financial losses, and it may even face bankruptcy,” the expert warned.

Meanwhile, State Minister for Civil Aviation Md Mahbub Ali recently told Dhaka Tribune that the final decision on aircraft purchase had not been made yet. “It is only a policy decision. The final decision will come after the selection of a technical committee.”

Biman is yet to form the committee, he added.

 

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he plan had been put forward without doing any market research on the routes to assess passenger and cargo demand, the aviation industry sources claimed.

There was no revenue plan, fund figures, or analysis of crew requirements either, they added.
:unsure:
 

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This deal has corruption written all over it
SOE are always champions at wasting tax money. No wonder here private airlines like Lion rose up to rule the market used to be monopolized by Indonesia's national flag carrier.

Private companies >>> SOE
 

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After Airbus, the American manufacturer Boeing has now offered its latest model aircraft, 787-10 Dreamliner, to the Biman Bangladesh Airlines.

The company sent a letter in this regard to Biman's chairman recently which will be discussed in the board meeting on Tuesday, said Shafiul Azim, managing director of Biman.

"As we have a partnership with Boeing, they offer us any new service or model that comes in the market and as part of that they offered their latest model. We already have their 787-9 model passenger aircraft in our fleet," he said.

Earlier, the Biman board took the primary decision to purchase 10 wide-body Airbus aircraft, including two cargo and 8 passenger planes. An agreement was signed between the UK Government and Bangladesh over the airbus purchasie during the prime minister's visit to London this month.

At present, Biman has 21 aircraft mostly dominated by Boeing. There is no Airbus aircraft in Biman's fleet.

The 787-10 Dreamliner is the newest and longest member of the 787 Boeing family.

 

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While local air operators struggle to recruit aviators, the European aircraft manufacturer Airbus has come up with a mega plan to develop the local aviation ecosystem. They will set up an ab initio school for the first time in Bangladesh to produce commercial pilots and mechanics, saving foreign currency for the country in the process, as air operators at present train pilots abroad.

Ab initio refers to airline career pilot programmes that take in students with very little or no flight experience and create competent, professional airline pilots by providing ATPL (Airline Transport Pilot License) in 18 months.

Airbus has already signed an agreement with Bangabandhu Sheikh Mujibur Rahman Aviation and Aerospace University (BSMRAAU) to set up the school in Lalmonirhat in the northern part of Bangladesh.

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The French aerospace company has been working in this regard for the last two years, pursuing the government to allocate land to build the infrastructure and finally, they brought up the issue in the recently signed MoU (memorandum of understanding) titled 'Aviation Trade and Investment Partnership' between the Bangladesh government and the UK government.

On 5 May during the prime minister's visit, the MoU was signed in London over purchasing 10 wide-body aircraft, including two cargo and eight passenger planes, where Airbus offered a long term plan for developing aviation infrastructure.

The aerospace company came up with a comprehensive package which includes supporting aviation focused higher education institutions, promoting cooperation in air traffic management and airport operations to improve air traffic services, delivering Airbus capacity to build initiatives to enhance skills of civil aviation personnel and tackling environmental challenges, including reduction of aviation emissions.

According to the signed agreement, Airbus will provide strategic advice and marketing services to Biman Bangladesh Airlines to assist in its operations. At the same time, the aerospace company will build a fleet plan up to 2030, such as how Biman can maximise the utilisation of aircraft, which routes they should go for expansion to generate more revenue, marketing plan etc.

As the deal was signed between two governments, there is no option of a third party receiving commission, and it will reinforce Bangladesh's bilateral trade with Germany, France, Spain and the UK, which are shareholder countries of Airbus, said a senior executive of the aerospace company.

"The trade and aviation partnership is not only limited to aircraft, but also to the development of the local aviation industry, to upskill human capital and to support Biman in its ambition to become a top airline," he said.

"It is a win - win partnership to boost an industry, which has been slowed down by the monopoly of Boeing," he added.

At present, the UK and the European Union altogether account for 60% of Bangladesh's total exports.

The signed MoU also includes a clause on exploring the potential for further development of trade, business and tourism between the UK and Bangladesh. Airbus will also support the holding of an annual aviation summit in Bangladesh as per the MoU.

The Civil Aviation and Tourism Ministry, in collaboration with the UK and France, organised the 'Bangladesh Aviation Summit-2023' for the first time in Dhaka in March this year.

In the summit Prime Minister Sheikh Hasina said Bangladesh should formulate a roadmap considering its geo-strategic advantage, to make the country an aviation hub.

"Reaping the dividend of our geo-strategic advantage, we should create a roadmap as to how we can make our country an aviation hub," she said in a video statement aired during the inaugural session of the aviation summit.

The prime minister also described the summit as very significant for Bangladesh.

The summit will help the Bangladesh government and air operators understand the real opportunities in the aviation business to make the country an aviation hub, the Airbus executive told The Business Standard when sharing their interest to enter the Bangladesh market.

Referring to International Air Transport Association (IATA) data, he said that Bangladesh's aviation industry has only a 0.3% contribution to the GDP, when the average contribution of other developing countries is 4%.

When contacted, European Union (EU) Ambassador to Bangladesh Charles Whiteley told The Business Standard that "the confirmation by the Bangladesh authorities of the purchase of 10 Airbus aircraft illustrates the positive trajectory of trade and investment relations between Bangladesh and the EU and the UK."

"Airbus is taking an innovative and comprehensive approach to support the development of Bangladesh's aviation 'ecosystem', at an important moment when there is much potential in the aviation sector. This could include pilot training, logistics and organisational expertise," he said.

"The EU is exploring ways to support this innovative approach. Our Global Gateway programme is prioritising support to infrastructure and connectivity. Bangladesh is a priority partner country for Global Gateway engagement," he added.

"Airbus stands ready to support the expansion of Bangladesh's civil aviation sector, for passenger and freighter operations, which will be a key driver of the country's accelerated economic growth," said Remi Maillard, president, Airbus South Asia.

"Airbus is aligned with Bangladesh's Vision 2041 and is ready to contribute to develop a local aerospace ecosystem that will give wings to the 2041 ambition. The vision of 2041 will draw further investments into the country from various parts of the globe that will propel the need to grow long-haul passenger and cargo operations," he added.

Director of Trade and Investment at British High Commission, Dhaka, Dan Pasha, said, "The signing of the Aviation Trade and Investment Partnership demonstrates the UK's commitment to strengthening Bangladesh's aviation industry, helping to create jobs in both countries, driving economic growth and boosting bilateral trade. We support Bangladesh in their objective of becoming the next aviation hub in South Asia, helping to continue to boost economic growth."

How Airbus entrance will develop aviation industry

Amid an industry-wide severe crisis of pilots, the largest private airlines US-Bangla sent a group of students to the USA, to train them as first officers, at their own cost. Under this programme, the airlines will require to spend at least $65,000 per head. They aim to train more than 20 pilots under this initiative, as the carrier is going to expand its fleet.

Though the demand for pilots is rising amid the entrance of new air operators and fleet expansion of existing operators, there is no pipeline for pilot production in the country. It is because only one academy - the Galaxy Flying Academy - is in operations and that too, with poor capacity.

The country's national carrier is also running at a 50% shortage of pilots, forcing it to operate its modern fleet in short of utilisation capacity and causing revenue loss.

Biman is not getting adequate applications even after advertising jobs for pilots, according to the carrier.

It is in this situation that Airbus is planning to enter Bangladesh, to develop the aviation infrastructure and ecosystem by training pilots, mechanics, and engineers.

When contacted, CEO Captain Lutfor Rahman said that the entry of Airbus is good news for Bangladesh's aviation industry as they are not only selling aircraft, but also developing the infrastructure.

Citing the pilot demand of the industry, he said US-Bangla alone needs at least 30 pilots in a year and if the entire industry is included, the demand is 60. If Airbus sets up the school, it will help the industry meet the demand and reduce pilot training cost.

He said US-Bangla is also adding two wide body A330-300 aircraft by August this year. Another narrow body ATR will be added by the end of year. As a result, the number of the fleet will stand at 21 by this year. The carrier will also take four Airbus next year taking the number to 25, the biggest fleet in Bangladesh, when currently Biman has 21 aircraft.

This is the first time US-Bangla is going to add an Airbus plane to its fleet, he said. Currently, it has seven Boeing in its fleet, he added.

He said Airbus is providing them training for pilot, cabin crew and engineers at their own cost. So, adding Airbus to their fleet will not add extra cost for them, he added.

He said though Bangladesh aviation industry has been dominated by Boeing in the last three decades, they did not develop any training facility or ecosystem for the industry.

If Airbus adds simulator training to their school, it will be more helpful, as there is none in the country. As a result, operators have to send existing pilots abroad to take the training, he added.

The potential of the passenger and cargo market for Bangladesh

The Air Travel Market in Bangladesh is approximately between $600 million to $700 million for passengers, with average growth of 8% to 10% per annum, according to IATA statistics.

IATA forecasts air transport in Bangladesh will grow by 168% in the next 20 years under the "current trends" scenario. This would result in an additional 12.1 million to 30 million passenger departures by 2038.

If met, this increased demand would support approximately $2.1 billion to $3.2 billion of GDP and around 140,000 to 222,000 jobs.

According to Airbus global projection presented at the aviation summit in March, both the passenger market and air cargo market from Bangladesh will continue to grow near the top of the world for the next 20 years.

The passenger market will grow at 6% while the air cargo market will grow at 8% per year, or triple the world average. The growth is driven by Bangladesh's GDP growth and increasing openness of its economy.

Developing a dedicated national cargo operation coupled with increasing Biman's passenger fleet will be vital in boosting the country's GDP and gaining the status of the high income country as per the national strategic plan, Vision 2041, according to the Airbus presentation.

On the passenger side, Asia-Pacific and the Middle East will lead growth in the international sector with passengers set to increase over 300% and 230% respectively by 2041.

Europe and North America both pose excellent opportunities to grow Biman's network and service, as each market forecasts to grow passenger traffic by over 150% in the next two decades.

Air freight cargo traffic from Bangladesh is forecasted to continue to grow at a staggering rate for the next 20 years from 400,000 tonnes in 2019 to 1.1 million tonnes by 2041, according to the Airbus presentation.

To accommodate the pressure of air travellers, especially in the Asia Pacific region, the third terminal of Hazrat Shahjalal International Airport is getting into shape and by 2023, it is expected to be functional, and three operational international airports, including one in Cox's Bazar, will join the list soon.

 

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The Board of Directors of Biman Bangladesh Airlines has instructed the national flag carrier to conduct a comprehensive study of the proposals from aviation industry leaders the Airbus and Boeing prior to the procurement of aircrafts.

"We have presented both the Boeing and Airbus proposals to the board today. After conducting a thorough analysis, we will present our findings during the next board meeting, recommending options that would be more financially beneficial for us in the long term," Shafiul Azim, managing director of Biman, told The Business Standard on Monday.

He said, "We are currently engaged in discussions with both companies. However, we have not reached a point where we can make a final decision."

The Biman MD said Boeing has offered Biman to buy at least four aircrafts including 787-Dash-9; 787-Dash-10. After Airbus, the American manufacturer Boeing has sent a letter in this regard to Biman's chairman recently.

In addition to the ongoing discussions, Boeing has also forwarded an offer for fighter cargo if Biman chooses to pursue that option.

"Boeing is always in contact with us as they had presented some proposals before the latest one. They have expressed their interest in providing technical support and training as well," he added.

Earlier, the Biman board took the primary decision to purchase 10 wide-body Airbus aircraft, including two cargo and eight passenger planes. An agreement was signed between the UK government and Bangladesh over the airbus purchase during the prime minister's visit to London earlier this month.

At present, Biman has 21 aircraft, mostly dominated by Boeing. There are no Airbus aircraft in Biman's fleet.

The 787-10 Dreamliner is the newest and longest member of the 787 Boeing family.

 

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State-owned carrier Biman Bangladesh Airlines has decided to purchase 10 planes from Airbus (AIR.PA), in a shift from its Boeing-dominated (BA.N) fleet, the South Asian country's junior minister for civil aviation told Reuters on Monday.

"As per our requirement, the decision has been taken to purchase 10 aircraft in phases. The technical committee is assessing now," Mahbub Ali said.

Ali's comments came after sources said the airline was close to a deal to buy 10 Airbus A350 widebody planes, marking its first order with the French planemaker.

It was not clear whether the deal would be finalised in time for the Paris Airshow, which opens on Monday.

Airbus declined to comment. Biman did not respond to a request for comment.

"Every country has both Airbus and Boeing in their fleet. We didn't have an Airbus in our fleet," Ali said, as the airline looks to break its reliance on the U.S. planemaker that typically dominates widebody orders.

 

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DHAKA, Sept 11 (Reuters) - French President Emmanuel Macron said on Monday that Bangladesh had committed to ordering 10 aircraft from Airbus (AIR.PA), marking the South Asian country's first deal with the European planemaker in a shift from its Boeing (BA.N) dominated fleet.

French officials said the deal for the A350 widebody airplanes, which is still being finalised, is with the national flagship carrier Biman Bangladesh Airlines Ltd.

"I thank you for your trust in the European aerospace industry. And this commitment for 10 Airbus A350 is important," Macron said in a statement to the media after a meeting with Bangladesh Prime Minister Sheikh Hasina.

The 51-year-old Biman Bangladesh has a fleet of more than 20 mostly Boeing planes, more than half of which are widebodies, and some Dash-8 turboprops.

Mahbub Ali, Bangladesh's junior minister for civil aviation, said that the initial order would be for two Airbus planes.

"We have asked for 10 aircraft in phases. The technical committee is now evaluating. These aircraft will be used on new and old routes. Each country has Airbus and Boeing in its fleet. But we only have Boeing, not a single Airbus," Ali said.

Biman Bangladesh's demand for more widebody aircraft comes as travel is seeing a strong post-pandemic rebound. The carrier flies nonstop to 20 destinations worldwide including Britain, Malaysia, Thailand and Canada.

 

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