Biman buying Boeings to fly off chaos

[Gyp 111]

Biman buying Boeings to fly off chaos | Business | bdnews24.com

Dhaka, Nov 1 (bdnews24.com)—Biman Bangladesh Airlines is adding two new aircraft to its fleet to battle its way out of flight schedule chaos.

The aircraft, two Boeing 777-300 ERs, will be bought on Sonali Bank UK and a consortium of 21 banks led by Eastern Bank Limited.

Representatives of the banks took the decision in a meeting at Bangladesh Bank on Thursday, Eastern Bank Limited Managing Director Ali Reza Iftekhar said. Deputy Governor of the central bank S K Shur Chowdhury presided over the meeting.

Biman will have to make a $118-million pre-delivery payment within Nov 15.

Sonali Bank UK is paying $58 million while the other banks led by the Eastern Bank Limited will pay the rest of the pre-delivery payment.

"We've decided to finance the purchase of aircraft by Biman. It will be given $ 60 million within the second week of this month," Iftekhar said.

Biman had been given loans to buy aircraft and it had repaid properly earlier, he added.

A top Biman official, requesting anonymity, said, "The meeting discussed the size and type of loans from Bangladeshi and foreign banks."

Biman Managing Director Mosaddek Alam was also present at the meeting.

Biman flies on four domestic and 18 international routes

 

[eastwatch]

Biman is lying in death bed. No amount infusion of vitamin will re-vigorate this organization. There is hope to restore its health if only its management is placed with a private company well-versed in flight business. Biman directors and high officials are only after their own privileges.

 

[Tshering22]

Biman is lying in death bed. No amount infusion of vitamin will re-vigorate this organization. There is hope to restore its health if only its management is placed with a private company well-versed in flight business. Biman directors and high officials are only after their own privileges.

Why doesn't the government make it a public company? Issue shares and corporatize it?

I mean even our national carrier is fcked up right now and this could be the only alternative for a turn around.

 

[bdslph]

true simply you have to do that

 

[Zabaniyah]

Why doesn't the government make it a public company? Issue shares and corporatize it?

I mean even our national carrier is fcked up right now and this could be the only alternative for a turn around.

They already did back in 2007.
New Age | Newspaper

Bottom line: If an airline runs under poor management, it will never do well. It doesn't matter how many fancy planes they buy.

 

[Tshering22]

They already did back in 2007.
New Age | Newspaper

Bottom line: If an airline runs under poor management, it will never do well. It doesn't matter how many fancy planes they buy.

In that case, you will have to leverage on your position and try to make Dhaka airport as a gateway to the southeast.

That's the only change Biman can become successful.

 

[bdslph]

i read a article is it true Biman can hardly pay for the planes they have right now from USA

 

[CaPtAiN_pLaNeT]

06 Nov 2012 * 04:12:44 PM * Tuesday BdST

China offers Biman to buy 3 planes
Ishtiaq Husain, Special Correspondent

China offers Biman to buy 3 planes

banglanews24.com

DHAKA: Xian’s Avic International, Chinese aircraft manufacturing company, has offered Biman to purchase three small aircraft MA-60 Turboprop for operating domestic flight in Bangladesh.
*
The aircrafts are 25 percent fuel efficient and also low-priced in comparison to the same aircraft in others company.
*
According to Chinese government owned Avic international’s proposal, it will also provide long term bank loan with very low interest with five years grace period, training facility, equipment, management and technical assistance, said a competent source in Biman.
*
The source also told banglanews that Avic wants to sell aircraft through government to government (G2G) scheme.

Earlier, China built Bangabandhu International Conference Center (BICC) in Dhaka and recently signed an agreement in Cox’s Bazar Airport development works under government to government scheme.* *
*
Biman, state-owned airlines of the country, laid down all F-28 in June 2012, a short range aircraft for domestic routes due to old age and costly operation.

Allude to, at present Biman has no domestic flight as all F-28 are out of service.*** *
*
Avic proposed Biman to buy aircraft through Civil Aviation ministry last year. In July Avic international gave a presentation to Aviation ministry regarding MA 60 Turbo prop aircraft.
*
On August 4, Avic’s proposals were discussed at the meeting of Biman board of directors. After discussion, it was decided by the board that Biman should evaluate the technical, operational and financial aspects of the offer and thereafter place the matter for consideration of the board of directors. After four months the proposal was stuck on that stage.
*
Insiders in Biman said vested interest group in the state run airlines are against Biman’s domestic flight operation so that private airlines can dominate business.**** *
*
Sources said MA-60 Turbo prop has 48, 52 and 56 seated aircraft. Aircraft built by Canadian p & w company’s engine while auxiliary power unit (APU) is made by USA. Aircraft is equipped with modern technology which makes it fuel efficient.
*
Aircraft price is 16 million USD while other company’s short range aircraft price 28 to 30 million USD.
*
According to Avic expert opinion, if Biman purchases Turbo prop aircraft, it will be 100 percent profitable in domestic flight operation.
*
At least 15 countries, including China, Sri Lanka, Myanmar, Philippine, Indonesia, Laos and Cambodia have been operating flight by Turbo prop aircraft. Avic has already made 115 aircrafts while 25 aircrafts in pipeline in the factory.

BDST: 1615 HRS, NOV 6, 2012
IH Edited by: Abul Kalam Azad, Newsroom Editor/ M. Mahbub Alam, Asst Output Editor

 

[CaPtAiN_pLaNeT]

In that case, you will have to leverage on your position and try to make Dhaka airport as a gateway to the southeast.

That's the only change Biman can become successful.

present government already planned it by trying for the 7 billion usd new airport project which was hampered most by petty politics. There is a bad system in bd politics and that is if any ruling party see they can not implement or start a project under their name they just discard thatso that next time opposition can not claim that it is their success. Poor project planning and execution are other major concern which is also increasing project cost by a big margin. Can you imagine 16 billion usd aid money is now unused and government is moving door to door for 1.2 billion usd for padua bridge aid money.

 

[livingdead]

Its the story of IA/PIA too, govt should not run airline on taxpayer's money.

 

[eastwatch]

They already did back in 2007.
New Age | Newspaper

New Age says it is a Public Company since 2007, but are the Biman's shares sold or traded among the public through the Stock Exchanges? I do not think so. If the govt claims it is a Public Company it can only mean that all the BB stocks are still owned only by the govt and through govt these are controlled by the corrupt bureaucrats of the country. Check if the definition below applies to BB or not.

Once a company goes public, it has to answer to its shareholders. For example, certain corporate structure changes and amendments must be brought up for shareholder vote. Shareholders can also vote with their dollars by bidding up the company to a premium valuation or selling it to a level below its intrinsic value.

Read more: Public Company Definition | Investopedia

 

[eastwatch]

06 Nov 2012 * 04:12:44 PM * Tuesday BdST

China offers Biman to buy 3 planes
Ishtiaq Husain, Special Correspondent

China offers Biman to buy 3 planes

banglanews24.com

DHAKA: Xian’s Avic International, Chinese aircraft manufacturing company, has offered Biman to purchase three small aircraft MA-60 Turboprop for operating domestic flight in Bangladesh.
*
The aircrafts are 25 percent fuel efficient and also low-priced in comparison to the same aircraft in others company.
*
According to Chinese government owned Avic international’s proposal, it will also provide long term bank loan with very low interest with five years grace period, training facility, equipment, management and technical assistance, said a competent source in Biman.
*
The source also told banglanews that Avic wants to sell aircraft through government to government (G2G) scheme.

Earlier, China built Bangabandhu International Conference Center (BICC) in Dhaka and recently signed an agreement in Cox’s Bazar Airport development works under government to government scheme.* *
*
Biman, state-owned airlines of the country, laid down all F-28 in June 2012, a short range aircraft for domestic routes due to old age and costly operation.

Allude to, at present Biman has no domestic flight as all F-28 are out of service.*** *
*
Avic proposed Biman to buy aircraft through Civil Aviation ministry last year. In July Avic international gave a presentation to Aviation ministry regarding MA 60 Turbo prop aircraft.
*
On August 4, Avic’s proposals were discussed at the meeting of Biman board of directors. After discussion, it was decided by the board that Biman should evaluate the technical, operational and financial aspects of the offer and thereafter place the matter for consideration of the board of directors. After four months the proposal was stuck on that stage.
*
Insiders in Biman said vested interest group in the state run airlines are against Biman’s domestic flight operation so that private airlines can dominate business.**** *
*
Sources said MA-60 Turbo prop has 48, 52 and 56 seated aircraft. Aircraft built by Canadian p & w company’s engine while auxiliary power unit (APU) is made by USA. Aircraft is equipped with modern technology which makes it fuel efficient.
*
Aircraft price is 16 million USD while other company’s short range aircraft price 28 to 30 million USD.
*
According to Avic expert opinion, if Biman purchases Turbo prop aircraft, it will be 100 percent profitable in domestic flight operation.
*
At least 15 countries, including China, Sri Lanka, Myanmar, Philippine, Indonesia, Laos and Cambodia have been operating flight by Turbo prop aircraft. Avic has already made 115 aircrafts while 25 aircrafts in pipeline in the factory.

BDST: 1615 HRS, NOV 6, 2012
IH Edited by: Abul Kalam Azad, Newsroom Editor/ M. Mahbub Alam, Asst Output Editor

I am wondering if the Chinese propeller plane is really $16 million? Is it not quite expensive considering it is not a long-distance jet plane? Is the price tag correct?

 

[bdslph]

may not be state of the art technology but it is excellent for the domestic route this will be enough

 

[Tshering22]

may not be state of the art technology but it is excellent for the domestic route this will be enough

Why not consider Antonov An-148? Currently there are 16 of them in non-scheduled cargo operations in India as well. Very good aircraft for regional operations.

 

[Tshering22]

Its the story of IA/PIA too, govt should not run airline on taxpayer's money.

That's not an excuse for pathetic management. The 0 accountability factor is what is causing airline staff in Air India/PIA/Biman etc to play with taxpayers' money. Privatization of all these three airlines is critical. Air India IMO needs to shut down and be re-branded and re-started as a new private airline.

INR 30,000 crores of debt and an equal amount of losses in payment is not a small amount.