Biman-Boeing deal expected this month, first aircraft due in Oct 2031

Infograph: TBS

An agreement between Biman Bangladesh Airlines and Boeing is expected to be signed this month, with the first aircraft from the US aviation giant scheduled for delivery in October 2031, according to sources at the national flag carrier.

The remaining aircraft are expected to be delivered by November 2035.

The timeline follows a recent policy-level approval by the Biman board to purchase 14 aircraft from Boeing, a decision that has, for now, pushed Airbus's competing proposal on the back burner.

Biman spokesperson Boshra Islam confirmed the delivery schedule to The Business Standard, adding that discussions with Boeing are underway on contractual and procedural issues.

"After the board's decision, talks are continuing on signing the agreement and completing the required formalities," she said, adding that the price of the aircraft is currently the main issue under discussion.

When asked about financing, Boshra said, "We will issue a request for proposal to obtain a bank loan. Then, we will engage with the lender offering the lowest interest rate."

Biman currently operates a fleet of 19 aircraft, of which 14 are Boeing-made. Under the approved proposal, Boeing is set to supply two Boeing 787-9 aircraft, eight Boeing 787-10s and four Boeing 737-8s.

The board reviewed Boeing's proposal dated 24 November 2025 and a revised draft agreement submitted on 20 December 2025 before granting policy-level approval on 30 December.

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The national carrier has been facing a severe fleet crisis over the last few years after failing to ensure aircraft availability through leasing, disrupting existing routes and delaying the launch of new ones.

Board approval not the final step

However, aviation experts and former insiders have cautioned that board approval alone does not guarantee aircraft acquisition, as several key steps still remain.

Former Biman board member Kazi Wahidul Alam said the approval marks only the beginning of a complex contractual and financial process. "Board approval is not the final step. There are important procedures both before and after this stage."

According to him, aircraft purchases typically require a down payment of around 10% of the total price, usually arranged through banks. 

"Only after the down payment is made and the aircraft purchase agreement is signed does the order become officially confirmed," he explained.

Recalling Biman's 2007 aircraft deal with Boeing, Wahidul said the signing process was itself complicated. "Initially, the plan was to sign the agreement in Dhaka. Later, we were required to go to the US Department of Commerce to finalise it."

He indicated that the change in government also affected such deals, citing challenges they faced after Sheikh Hasina came to power following the caretaker government led by Fakhruddin Ahmed.

Biman officials also stressed that the board's approval merely authorises negotiations and does not create any financial or legal obligation until a formal contract is signed.

Airbus proposal uncertain

Airbus has reportedly proposed supplying 10 A350 wide-body aircraft and four A320neo narrow-body jets to Biman. On the status of that proposal, Biman spokesperson Boshra indicated that there would be no immediate progress.

"Since Boeing's proposal has been accepted between the two, it can be assumed that there will be no advancement regarding the other proposals at this stage," she said.

Asked whether the Airbus proposal had been rejected following the Boeing decision, an Airbus source told The Business Standard on condition of anonymity, "We have been informally informed about the board decision. That's it. There has been no communication regarding rejection or otherwise."

While the Boeing purchase is expected to modernise Biman's long-haul fleet, industry experts have warned that over-reliance on large aircraft could weaken the airline's commercial competitiveness.

Speaking to TBS, Wing Commander (retd) ATM Nazrul Islam, an aviation expert and former airline executive, noted that the addition of wide-body Boeing 787 and 777 aircraft has improved fuel efficiency, but questioned the strategic balance of the fleet.

"Not all routes can sustain wide-body aircraft year-round. Operating large planes on thin routes leads to empty seats and revenue losses," he said.

According to him, narrow-body aircraft such as the Airbus A321neo or Boeing 737 MAX are better suited for many regional and medium-density routes. "Major global airlines operate mixed fleets. Biman must do the same if it wants to survive and grow," he added.

Nazrul also rejected the notion that fleet size alone defines a major airline. "You don't become a big airline just by flying big aircraft. Increasing frequency and maintaining market presence is the real strategy."

Echoing the sentiment, Wahidul Alam said, "Rather than relying solely on Boeing, it is essential to maintain a balanced fleet."

He added that operating large aircraft on all routes is not feasible and that Airbus A320 or A321-type aircraft could be more effective on short- and medium-haul routes.

Boeing deal amid geopolitical, market pressure

The Boeing purchase also carries geopolitical implications. 

Earlier, amid discussions over reciprocal tariffs with Washington, the government committed to buying up to 25 Boeing aircraft as part of a broader trade arrangement, according to Commerce Secretary Mahbubur Rahman.

Following the commerce secretary's remarks, European diplomats stepped up efforts to promote Airbus aircraft in Bangladesh.

Discussions on acquiring Airbus planes began under the previous government, and French President Emmanuel Macron publicly acknowledged Bangladesh's interest during his visit to Dhaka in September 2023.

With Bangladesh's aviation market expanding and local carriers holding only about 35% of the market, Biman faces growing pressure to expand and restructure its fleet. 

For now, however, Boeing appears firmly in the cockpit, while Airbus remains on the runway, waiting.