Biman signs Airbus deal to buy 10 aircraft

Biman Bangladesh Airlines has signed an agreement with the European aircraft manufacturer Airbus for the acquisition of 10 new aircraft as the national flag carrier moves ahead with a major fleet expansion programme.

The latest Airbus package is expected to be worth more than $2 billion, according to sources concerned.

The signing ceremony, titled "Spreading Our Wings Together," was  held at a city hotel at 6:30pm today (7 October).

Airbus South Asia President Jürgen Westermeier, and Biman Chairman Rumee A Hossain signed the deal.

The signed 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.

The aircraft are expected to be delivered from 2031, though Civil Aviation and Tourism Minister M Rashiduzzaman Millat said Biman has requested Airbus to deliver at least one aircraft earlier, possibly by 2028.

"Today's initiative is not merely about acquiring aircraft; it is part of the broader goal outlined in the government's election manifesto to transform Bangladesh into a modern aviation hub.

"To achieve this goal, Biman Bangladesh Airlines' fleet, route network and operational capabilities will be further strengthened. At the same time, the airline will move forward with the objective of establishing Biman as a world-class legacy airline," Civil Aviation and Tourism Minister M Rashiduzzaman Millat said.

The signing marked 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 signing ceremony  brought together representatives of the government, Biman and Airbus, with Civil Aviation and Tourism Minister M Rashiduzzaman Millat, State Minister for Foreign Affairs Humaiun Kobir, and Invest Bangladesh Executive Chairman Ashik Chowdhury speaking at the event.

Ambassadors of the European Union, France, UK, Spain and Germany also spoke at the ceremony.

"We regard this agreement as a strategic step in Bangladesh's growing commercial and investment relations with Europe -- relations built on international competitiveness, innovation and reliability. At the same time, it represents a strategic decision in favour of economic modernisation, safety and value for money," European Union Ambassador Michael Miller said.

Rumee A Hossain said, "The Airbus inclusion is part of our long term vision to build a sustainable mixed fleet model."

"It is a major and reasonable ambition as  Bangladesh handles over 1.5 crore air  passengers  each year," he added. 

He said that widebody aircraft will fly to the Middle East, Europe, North American and Australian routes while narrowbodies will focus on regional and medium Asian hubs. 

Biman MD and CEO Kaizer Sohel Ahmed  delivered a welcome speech.

The discussions over the purchase of 10 Airbus aircraft date back to the Sheikh Hasina 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 has intensified its diplomatic and commercial engagement, while several European ambassadors have repeatedly raised the issue during EU-Bangladesh bilateral negotiations.

Biman's 35-aircraft expansion deal

The Airbus deal, together with two Boeing agreements, will take Biman's planned new-aircraft pipeline to 35 aircraft, comprising 19 widebody and 16 narrowbody jets.

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, with the price based on the same rate agreed under the April contract, the minister said.

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 and the final aircraft by 2035.

The national carrier currently has 19 aircraft, mostly Boeing dominated. Through the Airbus deal, Biman now goes for a major mixed fleet operation.