Biman set to sign multibillion-dollar Airbus deal for 10 aircraft on Wednesday
Biman and Airbus have reached a consensus on several outstanding issues following a series of negotiations, leaving no major matters unresolved between the two sides.
Biman Bangladesh Airlines is set to sign a multibillion-dollar agreement with European aircraft manufacturer Airbus on Wednesday to acquire 10 new aircraft – days after signing a deal for 11 additional Boeing jets – as the government pushes ahead with plans to expand the national carrier's fleet, according to sources familiar with the development.
The signing ceremony is scheduled to take place at a city hotel on Wednesday evening and is expected to mark a major step in Biman's fleet expansion and modernisation plans, the sources told The Business Standard today (4 OCtober).
Biman and Airbus have reached a consensus on several outstanding issues following a series of negotiations, leaving no major matters unresolved between the two sides, they said.
The proposed package comprises four Airbus A350-900 widebody aircraft and six A321neo narrowbody jets, which are intended to support Biman's future long-haul and regional network expansion.
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Civil Aviation and Tourism Minister M Rashiduzzaman Millat had earlier confirmed that Bangladesh would acquire 10 Airbus aircraft and said an agreement was expected to be signed in October.
"Yes, we are buying 10 Airbus aircraft. Inshallah, the agreement will be signed in October," the minister recently told journalists at the Secretariat.
The upcoming signing with Airbus would mark the conclusion of months of evaluation and negotiations over Biman's Airbus procurement, coming shortly after the national flag carrier expanded its Boeing acquisition programme to 25 aircraft.
The Airbus deal, together with two Boeing agreements, would take Biman's planned new-aircraft pipeline to 35 aircraft, including 19 widebody and 16 narrowbody jets.
The latest Airbus package is expected to be worth more than $2 billion, according to sources.
Boeing fleet expansion
Biman's latest Boeing agreement was signed in New York on 23 September under a "Right to Purchase Additional Aircraft" provision included in the 14-aircraft purchase agreement signed on 30 April.
The supplementary agreement covers five Boeing 787-10 Dreamliner widebody aircraft and six Boeing 737-8 MAX narrowbody aircraft. The 11 aircraft will cost about $2.7 billion, based on the same pricing agreed under the April contract, Civil Aviation and Tourism Minister M Rashiduzzaman Millat said during a question-and-answer session with journalists.
The 30 April agreement covered the purchase of 14 Boeing aircraft worth $3.7 billion.
Together, the two Boeing agreements cover 25 aircraft, 15 widebody jets, comprising two 787-9s and 13 787-10s, and 10 737-8 MAX narrowbody aircraft.
Under the contracts, the first Boeing aircraft is scheduled for delivery in November 2031, with the final aircraft expected to be delivered by 2035.
However, Biman has requested Boeing to deliver at least one aircraft earlier, possibly in 2027 or 2028, the minister said.
With the planned Airbus purchase, Biman is set to undertake one of the largest fleet expansion programmes in its history, with the 35 new aircraft expected to significantly increase its capacity for both long-haul and regional operations.
