Biman proceeding with Airbus deal to avoid future risks: Outgoing MD

Biman Bangladesh Airlines is going to diversify its fleet by purchasing Airbus planes to avoid future risks, said the airline's outgoing Managing Director Shafiul Azim.

"Any company can perform poorly at any time. So, as part of a long-term plan, we are in negotiations with Airbus to ensure that we do not face any major crises during such a time, our strength is not unstable in the future and we do not take unnecessary risks," Shafiul Azim said.

He was speaking at a views-exchange meeting with the Aviation and Tourism Journalists' Forum of Bangladesh at the Biman office today (29 May), which was his last working day. Tanzim Anwar, president of the association, presided over the event.

"If we can make an excellent combination of Boeing and Airbus, Biman Bangladesh Airlines will reach a unique height in Asia or in the world," he added.

Asked about the future risks, the outgoing MD referred to some recent incidents involving Boeing 737 Max aircraft.

Risks regarding Boeing aircraft came into the limelight after a whistleblower, Sam Salehpour, who had worked at Boeing for more than a decade, said the company had dismissed safety concerns about the assembly of its 787 and 777 jets that fly international routes.

However, Civil Aviation and Tourism Minister Muhammad Faruk Khan, while addressing technical issues raised by the whistleblower, recently said, "We have talked to the company [Boeing] and asked about the technical issues. We did not find any problems as of yet, so there is nothing to panic about."

At present, the total number of aircraft in the Biman fleet is 21 – four Boeing 777-300 ER, four Boeing 787-8, two Boeing 787-9, six Boeing 737, and five Dash 8-400 aircraft.  

Mentioning another reason behind bringing fleet diversity, Biman's outgoing MD said, "Now that we're expanding the fleet, we should diversify as well. If there is no diversity, if we're just single-sourced, then there's no option for passengers to choose from. 

"You know that passengers often have a choice as to which company's aircraft they're going to travel with. If we get a new aircraft, we will be able to accommodate them."

In reply to a question, Shafiul Azim, who has been promoted as the secretary of the Election Commission, further said, "Airbus will be bought following the system or policy. There is no chance of discrepancy. It will be seen whether we are getting technical backup, or whether we are profited financially."

It should be noted that some recently published articles in newspapers that were based on a techno-financial evaluation committee report of Biman in January this year stated that Airbus's offer to sell two A350-900 passenger aircraft is not financially viable for the national carrier. 

However, on April 22, a new appraisal committee took over the evaluation and, in only three days, concluded that it would be a profitable venture.

Asked why the committee was changed, Shafiul Azim said, "There was no change in the committee. The previous committee head went into retirement. So, the most senior person from the existing committee was made the committee head.

"Airbus gave a revised proposal, which was much better, after the first one."

Regarding the progress of purchase, he said, "The report of the evaluation committee has now been referred to the negotiation committee by the Biman Board. Now they will deal with Airbus."

He further said that Biman also has an offer from Boeing in hand, which has yet to be evaluated. The offer was received soon after Airbus's revised proposal, he added.

"The same evaluation committee will review Boeing's proposal after reviewing the one from Airbus," Shafiul Azim said.

The outgoing MD also said the decision to buy Airbus had already been made last year when a Joint Communique was signed in London.

The communique signed between UK's Minister of State in the Department of Business and Trade Lord Dominic Johnson and Bangladesh Prime Minister's Private Industry and Investment Adviser Salman F Rahman, includes the purchase of 10 A350 aircraft, including two A350 Freighters, from Airbus to establish an aviation and trade partnership to develop Bangladesh's aviation sector.

Shafiul said, "Airbus had made two offers. The first one was to sell two freighters but we felt that we did not need cargo aircraft for the time being.

"However, we informed them about our desire to increase the passenger fleet, following which they sent the proposal."