Fleet crunch deepens at Biman as leasing efforts fail, new aircraft years away

At a time of surging passenger demand, Biman Bangladesh Airlines is facing a worsening fleet crisis after failing to add a single aircraft over the past five years.

Instead of expanding, the national carrier's fleet has shrunk to just 19 aircraft, after returning two leased planes last year when their contracts expired. Attempts to lease replacements have repeatedly failed, with five tender rounds drawing no response from international lessors.

Infographics: TBS

Officials and industry insiders say the core problem is the airline's inability to move quickly under government procurement rules, at a time when global aircraft supply is tight and leasing decisions are often made within days.

The shortage is already affecting operations. Biman is preparing to cut flights on several routes ahead of the Hajj season starting next April, even as it plans to launch services on the Dhaka-Karachi route later this month under a bilateral agreement.

Biman Spokesperson Boshra Islam told The Business Standard that the airline had attempted to lease aircraft last year but could not find any available planes.

"We are continuing our efforts," she said, adding that a draft plan to reduce flights during the Hajj season due to aircraft shortages had been prepared and would be announced once finalised.

On the slow leasing process, she said: "The airline is required to follow all government procurement rules and cannot deny that the process takes time."

No immediate fix

Biman's current fleet consists of four Boeing 777-300ERs, four Boeing 787-8s, two Boeing 787-9s, four Boeing 737s and five Dash-8 Q400s. The last aircraft added was a Dash-8 Q400 delivered from Canada on 5 March 2021.

Biman currently operates 22 international routes. There are plans to open more routes including East Asia, Europe and USA.

Under a 10-year plan approved by the Biman board in 2024, the airline aims to acquire at least 26 new aircraft, expanding its fleet from 19 to 47 planes by 2034.

Earlier in late June this year, Biman MD Md Shafiqur Rahman  told reporters, "We need aircraft to meet our current passenger demand. That's why we have decided to connect directly with aircraft lessors."

He said Biman is also unable to launch new routes due to the ongoing aircraft shortage.

However, insiders say the target now looks increasingly uncertain, as procurement discussions with both Boeing and Airbus remain unresolved.

One official said the problem cannot be solved quickly, noting that any major aircraft purchase requires cabinet-level approval and that deliveries typically occur five to six years after contracts are signed.

Former Biman board member and aviation analyst Kazi Wahidul Alam said the airline has remained indecisive for years, alternating between leasing aircraft and buying new ones.

"The issue is not the availability of leased aircraft, but the failure to follow realistic, practical and internationally accepted procurement policies," he said.

"Even though Biman issues tenders repeatedly, international lessors are reluctant to respond because the government process takes too long. They operate on hours or days – not months."

Boeing, Airbus deliveries years away

During negotiations with the United States in August over reciprocal tariffs, the government committed to procuring 25 Boeing aircraft. However, commerce ministry officials say Boeing would not be able to deliver the first plane before 2037.

A similar timeline applies to Airbus. After a September 2023 meeting in Dhaka between then prime minister Sheikh Hasina and French President Emmanuel Macron, France publicly acknowledged Bangladesh's commitment to acquiring 10 Airbus aircraft.

Asked whether deliveries could be made before 2030, Edward Delahaye, head of customer accounts for Airbus India and South Asia, said production capacity could not meet that timeframe due to high global demand.

"However, aircraft may become available earlier through lessors who already have orders with Airbus," he said, adding that Airbus routinely helps customers secure interim leased aircraft.

"If Biman selects Airbus, we will encourage lessors to provide aircraft as a bridge until our deliveries begin," Delahaye said.

Why private airlines are moving faster

Bangladesh's largest carrier by fleet size, US-Bangla Airlines, operates 25 aircraft, around 16 of which are leased. Its third Airbus A330-300 joined the fleet on 21 October.

US-Bangla spokesperson Kamrul Islam said private operators have a clear advantage.

"Government procedures involve multiple committees, approvals and banking protocols. Private airlines can act much faster," he said.

Even so, he added, global aircraft shortages are also affecting private carriers. "At this moment, we need at least three to four more aircraft, but availability is limited."

Rising demand, unresolved debts

Between 2021 and 2025, around 50 lakh Bangladeshis migrated overseas for work, according to the Bureau of Manpower, Employment and Training. While domestic air travel has softened on some routes due to improved road and rail links, overall passenger traffic continues to rise.

Data from Dhaka airport show that about 1.25 crore passengers passed through the country's busiest airport in 2024, up from 1.17 crore in 2023 — a growth of roughly 7%, despite political unrest.

Amid this demand, Biman reported a record profit of Tk937 crore in the last fiscal year. However, the airline still owes more than Tk6,068 crore to the Civil Aviation Authority of Bangladesh.

Caab sources say Tk4,794 crore of the amount is surcharge, while the principal stands at Tk746 crore.

Biman's former spokesperson ABM Rowshan Kabir said most of the disputed dues date back years. "About 79% of the outstanding amount claimed by airports is surcharge. We have withheld these old bills because we do not accept them," he said.