EU envoy for 'level playing field' as Dhaka weighs Airbus alongside Boeing

Highlights:

• EU envoy urges fair competition between Airbus and Boeing
• Airbus has an "incredibly competitive" offer, Miller says
• Biman signed a $3.7 billion deal for 14 Boeing aircraft
• Airbus negotiations continue despite Biman's Boeing agreement
• Revised Airbus proposal includes four A350-900s and six A321neos
• Bangladesh aims to modernise Biman while balancing global partnerships

European Union (EU) Ambassador to Bangladesh Michael Miller has urged the government to ensure a "level playing field" for aircraft manufacturers as Bangladesh weighs a potential Airbus purchase alongside its recently signed Boeing deal.

He also called on Dhaka to take Airbus's proposal "very seriously", describing the offer as "incredibly competitive".

"From our perspective, Airbus has an incredibly competitive offer. It should be taken very seriously. We expect discussions between Airbus and Biman to conclude very quickly," Miller told journalists after a meeting with ambassadors and representatives of the EU's 27 member states at the Ministry of Commerce today (6 September).

He said government procurement decisions should be based on commercial merit and that European manufacturers should be given the same opportunity to compete as companies from other countries.

Miller's comments come after state-owned Biman Bangladesh Airlines signed an agreement with US aircraft manufacturer Boeing to purchase 14 aircraft.

The agreement, signed on 30 April, is worth $3.7 billion, or around Tk45,408 crore. Boeing is expected to deliver the aircraft in phases between 2031 and 2035.

US President Donald Trump has praised Bangladesh's decision to purchase Boeing aircraft. Earlier, Trump's special envoy Sergio Gor said Bangladesh had committed to buying more Boeing aircraft on a larger scale, while Trump later sent a letter thanking Prime Minister Tarique Rahman.

Civil Aviation and Tourism Minister M Rashiduzzaman Millat told journalists on the day the Boeing agreement was signed that Bangladesh had decided to purchase the 14 aircraft following Trump's request. He also said Biman plans to lease additional aircraft.

Bangladesh had been pursuing an Airbus deal under the previous Awami League government as part of efforts to modernise Biman's ageing fleet.

The government had taken an in-principle decision to purchase 10 Airbus aircraft, but the process was not completed following the political change in July-August 2024.

Despite the Boeing agreement, negotiations with Airbus have continued.

In July, Millat told The Business Standard that the government had decided to proceed with the acquisition of 10 Airbus aircraft and hoped to sign an agreement by 31 August.

He said the aircraft would not be delivered immediately, with deliveries expected to begin from 2031, making additional aircraft leasing necessary to strengthen Biman's fleet in the meantime.

Millat said the price and other procurement terms would be disclosed once negotiations were finalised.

According to Airbus and Biman sources, Airbus has since revised its proposal, reducing the offer from 14 aircraft to 10 following Biman's Boeing agreement in April.

The revised proposal, submitted to Biman's techno-finance committee, comprises four A350-900 wide-body aircraft and six A321neo narrow-body jets.

The proposal comes as Bangladesh weighs how to expand and modernise Biman's fleet while balancing aircraft procurement, commercial terms and broader economic relations with both the United States and the European Union.