Boeing vs Airbus: A tough battle looms in Bangladesh

Highlights:

• Airbus makes major push to enter Bangladesh's Boeing-dominated aviation market
• European envoys urge Biman to diversify fleet for resilience and competitiveness
• Airbus and Boeing competing with similar wide-body and narrow-body offers
• Experts warn aircraft decisions must be commercial, not politically influenced
• Biman faces financial strain, operational weakness, and poor route planning
• Interim government uncertain about proceeding with long-term aircraft procurement

Airbus is making one of its strongest pushes yet into Bangladesh's aviation market, and the timing is no coincidence.

Within weeks of a joint call by four European envoys urging the inclusion of Airbus aircraft in Biman Bangladesh Airlines' fleet, Airbus Executive Vice President (International) Wouter van Wersch landed in Dhaka yesterday. 

Wersch is expected to meet senior government officials, including those of the civil aviation ministry, and Biman's top management, according to Airbus sources. 

His visit follows a meeting with Chief Adviser Muhammad Yunus in London on 10 June, during which Airbus expressed interest in a long-term partnership with Bangladesh.

On 4 November, the ambassadors and high commissioners of France, Germany, the United Kingdom and the European Union in Dhaka publicly encouraged Biman to diversify its Boeing-heavy fleet by inducting Airbus aircraft. They argued that a balanced mix would improve operational resilience and boost competitiveness.

Biman's fleet is currently dominated by Boeing, which accounts for 14 of its 19 aircraft.

Infograph: TBS

The government also made a commitment in August – during negotiations over reciprocal tariffs with the United States – that it intends to procure 25 Boeing aircraft, with delivery of the first wide-body expected in 2029. Commerce Secretary Mahbubur Rahman recently told AFP that this commitment is part of a broader trade arrangement with Washington.

Against this backdrop, Airbus' renewed engagement and the coordinated diplomatic messaging from European nations have raised questions within the aviation sector: can Bangladesh decline an Airbus proposal when the EU is its largest export destination?

EU Ambassador Michael Miller highlighted that trade in goods between the EU and Bangladesh reached €22.2 billion in 2024, with the EU carrying a €17.5 billion trade deficit, an imbalance he framed as part of the argument for a "level playing field" for European companies.

Now at stake is more than an aircraft order. It is a test of how Bangladesh navigates competing geopolitical pressures while trying to fix an airline that has struggled for years with losses, mismanagement and a narrow fleet strategy.

Experts warn against politicising fleet decisions

Aviation experts, however, caution against interpreting aircraft purchases as diplomatic currency.

Wing Commander (retd) ATM Nazrul Islam, an aviation expert and former airline executive, said, "When trade negotiations with the United States were under way, I warned that if aircraft purchases were tied to a deal, similar pressure would also come from Airbus.

"But the decision should not be made under any political pressure. It must be based entirely on business – on commercial viability and sound calculations."

Former Biman board member and aviation analyst Kazi Wahidul Alam echoed the concern, saying that buying new aircraft will not automatically help Biman unless the airline first strengthens its operational capacity.

"Europe is Bangladesh's largest export market, and there are plans to open more European destinations in the future. So, diplomatic relations are important. But bringing in aircraft is not enough – if the airline does not have the capacity to use them properly, Biman will suffer," he said.

Where the Airbus offer stands

Airbus has reportedly pitched 10 A350 wide-bodies and four A320neo narrow-bodies. Boeing, on the other hand, has offered 10 B787s and four B737 MAX aircraft.

While Biman is reviewing the Airbus proposal, no government authority has provided public updates on the evaluation process.

Attempts to contact Biman's managing director, the airline's spokesperson, and senior civil aviation officials did not yield responses.

Rafael Gomez, regional sales director for Airbus, said the company maintains regular engagements with Biman and relevant government entities. "We present our proposals during every visit and explain how Bangladesh can benefit from our technology and partnership model," he said.

On concerns about whether political instability or a change of government might affect an Airbus deal, he added, "Airbus is an apolitical company. We work with the operator and whichever government is in place, following the country's procurement procedures."

Airbus' flagship wide body, the A350-900, has a list price of $317.4 million, while its sibling, the A350-1000, is listed at $366.5 million, according to an aviation news portal Simple Flying report in late 2023.

The A320ceo costs a neat $101 million at list price, while the A320neo goes for $110.6 million.

Mixed fleet debate: Strategic or costly?

Global carriers typically operate mixed fleets to optimise route efficiency, cost structures, and operational flexibility. Bangladeshi experts also acknowledge this. 

"All major airlines in the world maintain a balanced fleet," said ATM Nazrul Islam. "Each type has its own advantages – some specialised capabilities are available in Boeing, and some in Airbus."

But concerns exist about whether Biman can manage the additional complexity. Introducing Airbus aircraft would require new training, maintenance arrangements, and inventory systems. 

Addressing these issues, Monal Shesh, Airbus' head of marketing for India and South Asia, said induction costs form only a small portion of lifecycle expenses. 

"Bangladesh already has an example of successful induction of new aircraft types," he said, referring to another local carrier operating A330s. "In the long run, fuel efficiency, reliability, and performance offset induction efforts."

Questions over route planning, financial condition

Biman's problems go far beyond fleet composition. The airline currently operates flights to 22 international destinations but its route strategy has come under scrutiny, particularly after the recent suspension of the Dhaka-Narita service following financial losses. 

This is the third time the airline has shut down the route. Several Biman officials have said the airline did not properly assess the commercial viability or profit potential before launching the Dhaka-Narita-Dhaka route.

Financial weaknesses are also acute. Despite reporting a record profit of Tk937 crore in the last fiscal year, Biman owes more than Tk6,068.54 crore to the Civil Aviation Authority of Bangladesh (Caab). Of this, Tk4,794.13 crore is surcharge alone; the principal amount is only Tk745.52 crore, according to Caab sources.

Biman's immediate past spokesperson, ABM Rowshan Kabir, told TBS, "About 79% of the outstanding amount airports claim from us is surcharge. We have not paid these additional surcharges on old bills because we do not agree with them."

"Our current bills are paid regularly. Discussions are ongoing regarding the old bills, and they will be settled in instalments once both sides reach an agreement," he added.

Will the interim government proceed?

Uncertainty remains over whether the interim government, which has been cautious about long-term procurement commitments, will take the negotiations forward.

Officials have not made public comments, and it is unclear whether the evaluation process will move ahead before an elected government takes office.

Moreover, discussions over the purchase of 10 Airbus aircraft date back to the previous regime. 

After a meeting with then-prime minister Sheikh Hasina in Dhaka in September 2023, French President Emmanuel Macron publicly thanked Bangladesh for its commitment to acquiring 10 aircraft from Airbus.

In the meantime, Airbus is intensifying diplomatic and commercial engagement, and Biman is under pressure – both economic and operational – to expand its fleet in a growing aviation market where Bangladeshi carriers currently hold only 25% share.

Whether fleet diversification becomes a strategic necessity or a geopolitical compromise will depend on how the government balances trade interests, aviation requirements and procurement discipline in the coming months, experts said.