Biman is preparing to sign deals for 21 more Boeing and Airbus aircraft within weeks, taking its unfulfilled orders to 35 aircraft.
The national flag carrier currently has 19 planes.
Sources familiar with the process told The Daily Star that an agreement on 11 Boeing aircraft is expected during the UN General Assembly, followed by a deal on 10 jets with Airbus next month.
Details of the Boeing aircraft, their variants, value, financing structure, and delivery schedule have yet to be publicly disclosed.
The proposed Airbus package comprises four A350-900s and six A321neos, sources said.
The purchases would come on top of a
$3.7 billion agreement signed in April for 14 Boeing aircraft: eight 787-10s, two 787-9s and four 737 MAX-8s, with deliveries scheduled to run from November 2031 to October 2035.
State Minister for Foreign Affairs Humaiun Kobir said at a programme in Dhaka on September 12 that Bangladesh needed to expand its aircraft fleet to support new routes and networks.
Any decision to buy Boeing or Airbus aircraft, he said, was “all business of Bangladesh, nobody else’s”.
Against this backdrop, European Union Ambassador Michael Miller last week urged the government to ensure a level playing field in Biman’s procurement process, saying such decisions should be made “on the basis of commercial merit.”
The proposed Airbus purchase came up again yesterday when British High Commissioner Sarah Cooke met Civil Aviation and Tourism Minister M Rashiduzzaman Millat at his Secretariat office.
According to a ministry press release, Millat said Biman was facing an aircraft shortage and that steps were being taken to add aircraft urgently.
He said any procurement would be carried out transparently, based on recommendations from the High-Level Negotiation Committee.
Biman currently operates 19 aircraft, including five turboprops, four 777s, four 787-8s, two 787-9s, and four 737-800s. If the deals go through, it will be the largest fleet expansion in Biman’s history.
Biman has not released a consolidated business case explaining how a mixed fleet and new planes would be used and when the old ones would be retired.
AIRBUS DEAL
Biman had earlier signalled readiness to conclude the Airbus agreement by August 31, according to sources familiar with the process. After that deadline passed without a signing, officials said the deal is now likely in October.
Millat at a programme in Mymensingh on August 31 said that Bangladesh would buy aircraft from France, England, and Germany, where sections of Airbus aircraft are made.
A source familiar with the process said Bangladesh bought Boeings at list prices, while Airbus had offered discounts.
The source said Airbus would begin the delivery process soon after the agreement is signed, with 85 percent of the purchase cost covered through financing from the UK, Germany, and France.
Interest rates would be disclosed only after the agreement is signed, sources said.
Airbus has also proposed a package covering maintenance, repair and overhaul (MRO), as well as pilot and cabin crew training, fleet planning, and cabin design, another source said.
BOEING DEAL
The potential order of 11 Boeing planes came to the fore on August 30, when US Special Envoy for South and Central Asian Affairs and Ambassador to India Sergio Gor said on X that President Donald Trump and Prime Minister Tarique Rahman had made “another incredible deal”.
Trump later shared the announcement and wrote to Tarique, expressing appreciation for the “decision to purchase.”
On September 1, Humaiun Kobir said Bangladesh faced no pressure from the US to buy Boeing aircraft, adding that the fleet expansion was based on the needs of the aviation sector.
CARGO HANDLING
The Cooke-Millat meeting also covered aviation security and airport operations.
Millat sought steps towards withdrawing the European Union’s High Risk Cargo & Mail (HRCM) status, imposed on Bangladesh in 2017, saying it had increased the time and cost of shipping. He said the government had taken initiatives to have the status withdrawn and was moving to install Explosive Detection Systems (EDS) at airports. The minister said Hazrat Shahjalal International Airport and Sylhet Osmani International Airport had received satisfactory ratings in a recently completed audit and that the government now wants the EU to withdraw the HRCM status.
Cooke said the UK was ready to cooperate with Bangladesh in its efforts to establish an aviation hub.
The meeting also discussed Menzies Aviation’s interest in working with Biman on ground handling at the third terminal.
Sources familiar with the process said the UK-based company wants to handle cargo there and that the proposed operation could create around 1,000 jobs locally.
They said Menzies is seeking government approval.
The third terminal is set to be operated by a Japanese consortium led by Sumitomo Corporation, which the Civil Aviation Authority of Bangladesh said will have the prerogative to select a second ground-handling operator alongside Biman.
Sources said proposals from interested firms, including Menzies, would therefore be assessed through that selection process.
Biman is preparing to sign deals for 21 more Boeing and Airbus aircraft within weeks, taking its unfulfilled orders to 35 aircraft.
www.thedailystar.net
Highlights:
- Biman aims to sign deal for 10 Airbus aircraft by 31 August
- Airbus deliveries expected to begin from 2031
- Biman to lease 10 aircraft until new jets arrive
- Govt approves move to acquire 10 Airbus planes
- Fleet expansion plan targets 43 aircraft with Boeing, Airbus orders
- Revised Airbus proposal includes four A350s, six A321neos
- Deal awaits final Biman board approval
- Airbus deal follows Biman's $3.7b Boeing order
State-owned Biman Bangladesh Airlines is set to sign another multibillion-dollar agreement with European aerospace giant Airbus by 31 August to purchase 10 aircraft, adding a second major order to its recent $3.7 billion deal with US manufacturer Boeing.
"The government has decided to proceed with the acquisition of 10 Airbus aircraft," State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat told The Business Standard. "We hope to sign the agreement by 31 August."
"However, the Airbus aircraft will not be delivered immediately. Deliveries are expected to begin from 2031. Therefore, until the new aircraft arrive, we will have to strengthen the fleet by leasing aircraft," he added.
Millat said details of the procurement, including the price and other terms and conditions, would be disclosed after the agreement is finalised, adding that negotiations are going on.
Talks advance at Farnborough Airshow
The proposed deal gained momentum at the Farnborough International Airshow 2026 in the United Kingdom, where Airbus and Biman officials met yesterday to discuss the timeline for signing the agreement, according to Airbus sources.
"The meeting at the Farnborough Airshow discussed the progress of the proposed agreement and the next steps in the timeline," an Airbus spokesperson based in South Asia told TBS.
He said the national flag carrier had sent a letter to Airbus this week expressing its intention to sign the agreement by 31 August.
"This is the first time we have received a clear commitment from Biman," the spokesperson said.
Biman Managing Director and Chief Executive Officer Kaizer Sohel Ahmed, accompanied by four senior officials from flight operations, engineering and corporate planning, travelled to the UK on 19 July to attend the airshow.
Airbus Vice President Edward Delahaye also recently met Civil Aviation and Tourism Minister Afroza Khanam, State Minister Millat and senior Biman officials in Dhaka to advance discussions on the proposal.
Fleet expansion plans
The proposed purchase comes as the government reviews a long-term roadmap to expand Biman's fleet to 47 aircraft by the fiscal 2034-35 as part of efforts to modernise the flag carrier, strengthen international connectivity and establish Bangladesh as a regional passenger and cargo hub.
Biman currently operates 19 aircraft, 14 of which are manufactured by Boeing. With the addition of the Boeing and Airbus orders, the fleet would expand to 43 aircraft.
Because neither manufacturer is expected to deliver new aircraft before 2030, Biman plans to lease 10 aircraft by next year to address its fleet shortage.
Industry insiders said Bangladeshi airlines are expanding their fleets in anticipation of rising passenger demand and additional capacity following the expected opening of Hazrat Shahjalal International Airport's Third Terminal later this year.
Board approval still pending
Although the government has publicly expressed its interest in purchasing Airbus aircraft, the deal still requires internal corporate and government approvals, according to Airbus.
"Although Biman's Board had earlier given policy approval on certain aspects, the issue of the down payment has not yet been finalised. Therefore, the proposal will have to be placed before the Board again before the agreement can be signed," the Airbus spokesperson said.
He added that advance payments are standard international practice in aircraft procurement, with around 1% of the total contract value typically paid upfront, although the amount may vary depending on negotiations.
Biman acting spokesperson Md Mohiuddin confirmed that the government approval process is underway.
Asked about the price of the aircraft, the Airbus spokesperson said: "We cannot make the price public because of legal obligations. However, the customer may disclose it after the agreement is signed."
According to aviation news portal Simple Flying, Airbus's flagship A350-900 wide-body aircraft had a list price of $317.4 million in late 2023, while the larger A350-1000 was listed at $366.5 million. The A320ceo carried a list price of $101 million, while the A320neo was priced at $110.6 million.
Airbus revises proposal
According to Airbus and Biman sources, the European manufacturer has revised its proposal, reducing its earlier offer from 14 aircraft to 10 following Biman's agreement with Boeing in April.
The latest proposal, submitted to Biman's techno-finance committee, includes four A350-900 wide-body aircraft and six A321neo narrow-body jets.
The revised offer comes less than three months after Biman signed a $3.7 billion agreement with Boeing on 30 April to purchase 14 aircraft, including eight Boeing 787-10 Dreamliners, two Boeing 777-9 aircraft and four Boeing 737 MAX aircraft.
Airbus and Boeing have competed for a place in Biman's future fleet for several years, attracting considerable diplomatic and commercial interest from both the United States and Europe.
Debate over a mixed fleet
Former Civil Aviation Authority of Bangladesh chairman Air Vice Marshal (retd) M Mafidur Rahman said he supports a mixed fleet comprising both Boeing and Airbus aircraft.
According to Rahman, reliance on a single manufacturer exposes airlines to operational risks if one manufacturer's aircraft encounter technical or regulatory problems.
However, he cautioned that operating aircraft from two manufacturers would increase maintenance costs, training requirements and technical complexity.
"A mixed fleet certainly involves additional costs. But with proper planning, it also offers strategic advantages. The most important thing is that Biman prepares a comprehensive commercial and operational plan so that the government and the public clearly understand the benefits expected from this investment," he said.
Rahman added that Biman has significant opportunities to expand revenue and strengthen its international competitiveness, but that achieving those goals would require professional management, policy continuity and a long-term strategy.
Europe's long campaign
Industry insiders said Airbus scaled back its original proposal as part of a strategic effort to remain competitive in Bangladesh's long-term fleet expansion programme.
The company had earlier proposed supplying 14 aircraft, including 10 A350 wide-body jets and four A320neo narrow-body aircraft.
Diplomats from France, the United Kingdom and Germany have repeatedly encouraged Bangladesh to consider Airbus aircraft as part of a balanced procurement strategy.
Airbus's campaign gained momentum in 2023 following French President Emmanuel Macron's visit to Bangladesh and references in the Bangladesh-UK Joint Statement to the possible acquisition of 10 Airbus A350 aircraft, including freighters.
On 4 November last year, the ambassadors and high commissioners of France, Germany, the United Kingdom and the European Union publicly urged Biman to diversify its Boeing-heavy fleet, arguing that a more balanced mix would improve operational resilience and competitiveness.
According to people familiar with the matter, at least two high-level meetings involving European envoys and senior officials from Bangladesh's aviation sector were held this month to discuss the proposal.
Agreement for 10 Airbus aircraft expected by 31 August as Biman pushes ahead with long-term fleet expansion plan.
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