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Biman Bangladesh Airlines

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Biman Bangladesh Airlines
বিমান বাংলাদেশ
File:BimanLogo.jpg
IATA ICAO Callsign
BG BBC BANGLADESH
Founded1972
HubsZia International Airport
Frequent-flyer programFrequent Flyer Programme[1]
SubsidiariesBiman Flight Catering Centre
Biman Poultry Complex
Biman Airlines Training Center
Fleet size12 (7 in active service)
Destinations23
HeadquartersDhaka, Bangladesh
Key peopleDr. M. A. Momen (MD)
Websitewww.bimanair.com

Biman Bangladesh Airlines (Bangla:বিমান বাংলাদেশ) is an airline based in Dhaka, Bangladesh. It is the national airline and operates domestic services and international routes to Asia and Europe. Its main base is Zia International Airport, Dhaka, with a hub at Shah Amanat International Airport, Chittagong but earns most of its revenue from flights to Osmani International Airport,[2] Sylhet. It has Air Services Agreements with 42 countries. The airline used to be completely owned by the Government of Bangladesh until July 22, 2007. There were attempts in 1998, 2004 and 2007 to offer part ownership to outside parties. On July 23, 2007 it turned into a public limited company; although, Biman would initially be a fully government-owned company and its board of directors comprises six government officials -- secretaries of the Cabinet Division and ministries of energy, commerce, finance, civil aviation, foreign affairs.[3]


For 24 years since its birth in February 1972, Biman operated as a monopoly in Bangladesh, before private airlines' had permission to operate.[4] Dogged by corruption and accidents, the airline also suffers from an ageing fleet, with some of its long haul aircraft banned in the US and EU member states for safety reasons. Annual Hajj flights as well as its subsidiaries, form an important part of this ailing carrier's business.

History

Biman Bangladesh Airlines, the national airline and flag carrier of Bangladesh, was established on 4 January 1972 with a Douglas DC-3 gifted by the Bangladesh Air Force, which was a veteran of World War II. It was originally known as Air Bangladesh International but renamed shortly after to Biman Bangladesh Airlines. The word biman is a Bangla word meaning "airplane". It originates from the Sanskrit word vimāna which is a name given to a type of flying machine mentioned in ancient Vedic literature. The logo of a stylised white stork flying inside a red circle with dark green and red lines above and below it is painted on the tail of Biman aircraft.

Boeing 707 at London Stansted in 1979

While Biman's early history is of expanding its fleet and destinations, its latter history is the opposite with nosediving profitability and growth, ill management, and corruption.[5] In the fiscal year 2005-06, Biman carried 1.15 million passengers, a growth of 70% over the previous decade. However, Biman's domestic passenger count in the same period was just over 162,000, a 35% drop over the previous ten years during which time private airlines began competing in this sector. During the same period, Biman also reported the biggest loss in its history of US$120 million, with another huge loss of US$100 million reported the following year.[6] Biman also owes millions of dollars in payments to the Bangladesh Petroleum Corporation from which it buys jet fuel for its aircraft. Biman reported continued losses since the late 1990s which is in contrast to the 1980s and early 1990s when it was a profit making operation.[7][8]

Fleet

Biman commenced operations with two Fokker F27 aircraft flying passengers to Chittagong and Sylhet from its base in Dhaka. Soon after a Boeing 707, chartered from British Caledonian, joined the airline's fleet allowing Biman to begin international flights.

In 1983, Biman purchased three Douglas DC-10 aircraft from Singapore Airlines, to provide services on its long haul routes. For over two decades, the DC10-30s were Biman's sole widebody airliner and served it well with no notable mechanical problems. This is in contrast to its domestic operations, operated with Fokker F28 and BAe ATPs which were routinely out of service due to various faults. Notably, a government minister deboarded a flight and travelled by road when he learned that the aircraft was a BAe ATP.[9] In January 2003, Biman leased two Boeing 737-300s which were operational on the domestic & regional routes for a period of 1½ years.[10][11] These acted as a replacement for the BAe ATPs which were no longer fit for operation.

During the mid-nineties, Biman switched its airliner of choice for long haul routes to the Airbus series of aircraft. Two new Airbus A310s joined Biman's fleet in 1996 followed by more in 2000 and 2003. It has nevertheless maintained its ailing DC10 fleet although, due to safety concerns, various countries around the world, notably the US and the EU member states, have banned the aircraft from passenger service. The airline maintains its own ancilliary and maintenance facilities at Zia International Airport, where it carries out all maintenance work on F28s, and C-Checks on DC10-30s and Airbus A310-300s.[12]

Management

Since its inception, the airline has been fully owned by the Bangladesh government through the corporate body Bangladesh Biman Corporation. During the late 1980s, the then president of Bangladesh, Hossain Mohammad Ershad, himself served as the president of Biman. However, in 2004 the government planned to offer 40% of Biman to foreign airlines, with the intention that the buyer would assume management control of the carrier. Due to the many strings attached to the deal and the fact that the government wanted to retain the main decision making rights, no airlines took up the offer and the plan was shelved. A similar initiative in 1998 cost Biman US$1.6 million in consultancy fees with no positive results.[13] In May 2007, the government approved plans to turn Biman into a Public Limited Company with shareholdings split between seven public sector organisations.[14] As part of the restructuring, the workforce of Biman will be reduced by around 50% through a Voluntary Retirement Scheme (VRS).[15]

The airline has been dogged by corruption for many years at all levels of management.[5] In 2007, the caretaker government launched an anti-corruption drive which saw the arrest of ex-prime minister Begum Khaleda Zia's brother, Shamim Iskander (a former Biman flight engineer), on many corruption charges.[16] This was shortly followed by the forced retirement of thirty-five other employees and officials, some of whom were close aides of Iskander.[17]

On July 23, 2007 the caretaker government of Bangladesh completed the process of turning Bangladesh Biman into a PLC. Biman Bangladesh Airlines has been renamed Bangladesh Airlines after its turning into a PLC. After becoming a public limited company the airline is supposed to be free from government control. The airline will purchase new aircraft or collect aircraft on lease on the basis of the management's suggestion for reviving the ailing organisation. In the first phase the government will hold 100 per cent share of the new company but later up to 49 per cent share of will be off-loaded. The government would bear long-term and short-term liabilities of the Biman, and the new company would start with zero liabilities.[18]

Subsidiaries

Biman has a number of non-aviation related enterprises, one of which is the Biman Flight Catering Centre (BFCC), a wholly owned subsidiary of Biman Bangladesh Airlines setup in 1989. The BFCC provides Biman's in-flight meals and is one of Biman's profitable operations, regularly supplying food to British Airways, Qatar Airways, Dragonair, Uzbekistan Airways and Iran Air along with casual orders from other airlines operating in Bangladesh.[19] The BFCC consumes 90% of the eggs and chicken from the Biman Poultry Complex, another profit-making subsidiary of Biman formed in 1976 and put into operation in November 1980 to rearing poultry at farms in Dhaka.[20][19] Bird flu was detected at one of the farms in March 2007 which resulted in many livestock being culled.[21] This was the first incident of bird flu in Bangladesh.

New York and Manchester routes

Since 1993, Biman had been operating flights to John F. Kennedy International Airport, New York from Dhaka via Brussels.[22] New York was Biman's farthest and prestigious destination and had been kept running for years, incurring heavy losses on each flight, in order to maintain a landing slot in the US which, if cancelled, would be difficult to regain.[23]

In order to minimise the losses, the decision was made to reduce the service to just one flight a week and re-route it through Manchester Airport in the UK since there was a higher demand from the expatriate Bangladeshi community in the north of England. On 8 April 2006, Biman's inaugral flight to Manchester, landed at Manchester Airport en-route to JFK.[24] However, the US FAA did not agree to the re-routing of the flight from Brussels to Manchester and fined Biman for breaching its rules.[25] Biman was therefore forced to revert the route back via Brussels.

The FAA had placed the Civil Aviation Authority of Bangladesh into Category 2 (does not meet ICAO standards) according to its International Aviation Safety Assessment Program.[26] This categorisation of the country's CAA placed additional restrictions on the country's airlines when flying to the US. A former CAAB assistant director made scathing remarks against the CAAB in an opinion article in the Aviatour.[27] For Biman, this meant that it could continue flying to the US, but could not expand or make changes to its routes such as changing the transit from Brussels to Manchester. Additionally, the FAA had previously warned Biman to replace, by December 2005, the ageing DC-10s which, according to experts, did not have the necessary equipment for safely crossing the Atlantic.[28][29]

Biman McDonnell Douglas DC-10 landing

On 13 May 2006, the FAA refused permission for Biman flight BG011 (DAC-DXB-BRU-JFK) to enter its airspace, citing safety concerns over the ailing DC-10 aircraft being used on the route.[30] Instead, the flight was diverted to Montreal Airport in Canada where the passengers were provided with alternative flights to complete their journey.[31] The Canadian authorities inspected the aircraft and gave it a clean bill of health after which the aircraft returned to Dhaka without any passengers. Later the FAA admitted it was mistaken and apologised for the error.[32][33]

This was, however, the end of a route which was losing US$80,000 per flight due to the use of ageing DC10 aircraft.[34] Biman decided to axe the route along with a number of other regional and domestic routes to curb the huge losses being incurred each month.[35]


Destinations

Biman has Air Services Agreements with 42 countries. It is utilising 18 of those routes and therefore has further scope for expansion, which it is unable to do due to a shortage of aircraft.[15] As at August 2007, Biman was operating flights to the following destinations:[36][37]

Bangladesh
South Asia
Asia
Middle East
Europe

Fleet

Biman Airbus A310-300 landing

Douglas DC-10s and Airbus A310s make up the majority of the aircraft in Biman's fleet which it utilises on its international routes. Fokker F28s make up the remainder of the fleet for the domestic and regional sectors.[38] Biman's fleet contains the final Douglas DC-10 to come off the production line for passenger service. Furthermore, only three other Airbus A310s were produced following Biman's purchase of two new Airbus A310s in 1996.[39] Biman's most recent additions to its fleet are two Fokker F28-4000s acquired from PB Air in 2004 at a cost of US$2.91 million.[40] Both the aircraft were built in 1977, making them the oldest aircraft in Biman's fleet.[41]

Biman has in the past, on a few occasions, submitted proposals to the government for modernisation of its ageing fleet. In 2005, plans were put in place to purchase ten new wide-bodied Airbus and Boeing aircraft at a total cost of US$1 billion.[42] However, this was not carried through due to lack of funding. Similar plans, for a smaller number of aircraft, in 2000 were also shelved.[43]

Current fleet

As of May 2007, Biman Bangladesh Airlines fleet consists of 12 aircraft of which only seven are in active service:[15]

Biman Bangladesh Airlines Fleet[44]
Aircraft Total Passengers
(First/Economy) 		Routes Notes
Airbus A310-300 3 25/196 International
Airbus A310-300 2 25/200 International on lease
Airbus A300-600 2 28/210 International on lease
McDonnell Douglas DC-10-30 5 30/244 International
Fokker F28 Mk4000 4 0/80 Regional/Domestic

Retired fleet

Orders

In March 2007, Biman put out a tender for the dry lease of two Airbus A310-300 and two Airbus A300-600 aircraft for a period of two years for delivery by July 2007.[45] The sole response to the tender came from Star Aviation of the United Arab Emirates and Biman has not confirmed if it will be taking up the offer.[46]

Incidents and accidents

  • 10 February 1972: The first accident in Biman's history occurred less than a month after starting operations. All five crew members were killed when the Douglas DC-3 crashed near Dhaka during a flight test.[47]
  • 18 November 1979: A Fokker F27, being used for flight training, was forced to land in a field near Savar Bazar after the engines caught fire and cut out following a stall test at 8,000 feet. The aircraft was written off following the mishap.[47]
  • 3 April 1980: A Boeing 707, taking off for a scheduled international flight from Singapore (QPG-DAC) experienced a sudden loss of power just after the landing gear retracted. The aircraft had attained an altitude of about 100 feet at the point it lost lift and fell back to the runway. All four engines had apparently flamed out although it was also deemed possible that the takeoff was aborted too late. The aircraft was written off following the incident.[47]
  • 4 August 1984: A flight from the port city of Chittagong (CGP-DAC) crashed near Dhaka killing all 49 people on board. Captain Kaniz Fatema Roksana, the airline's first female pilot, made two attempts to land in reduced visibility but failed to sight the runway. On the third attempt the Fokker F-27 crashed in swamps 500 metres short of the runway.[48]
  • 22 December 1997: Flight BG609 (DAC-ZYL) made a belly landing on paddy fields 3 km short of Osmani International Airport in heavy fog. 17 of the 89 people on board were injured but no one was killed in the incident. The Fokker F28 suffered substantial damages and was written off.[49][50]
  • 8 October 2004: Flight BG601 (DAC-ZYL) landed far down the 9000 feet runway at Osmani International Airport in heavy rain and overshot the end by 150 feet coming to rest in a ditch 15 feet deep. The Fokker F28 suffered substantial damage to the forward fuselage and was written off. All 79 passengers (including a number of VIPs from the Bangladesh government) escaped with some minor injuries but the captain, Shahana Begum, suffered a broken arm.[49] Subsequently, the body of the damaged plane was sold by Biman for Tk 11 lakh to Western Grill Air Corporation who converted it into a restaurant sited at Ashulia, Dhaka.[51][52] The restaurant was opened by the Bangladesh national cricket team and earned its owner, an expatriate Bangladeshi from the United Kingdom, a meeting with then prime minister of Bangladesh, Sheikh Hasina. The restaurant was also visited by the British High Commissioner to Bangladesh and the Chief of Staff of the Bangladesh Air Force.[53]
  • 1 July 2005: Flight BG048 (DXB-CGP-DAC) skidded off runway 23 and onto the grass at Shah Amanat International Airport while landing during heavy rain. The right-hand undercarriage of the Douglas DC-10-30 caught fire. Ten passengers were injured while exiting the aircraft.[54] An enquiry found no faults with the aircraft and put the blame for the accident on the inefficiency of the pilot who was later sacked by Biman.[55]
  • 12 March 2007: Flight BG006 (LHR-DXB-DAC), carrying 236 passengers and crew, the nose gear of the Airbus A310-300 collapsed while accelerating down the runway. 14 people suffered minor injuries in the accident at Dubai International Airport. The aircraft came to rest at the end of the runway and was evacuated, but crippled the only active runway and forced the airport to close for eight hours while the authorities inspected the runway to ensure operations could resume.[56] The aircraft was a write-off and Biman received US$22 million in compensation from the insurance companies.[57]

See also

References

  1. ^ Biman Bangladesh Airlines Frequent Flyer Programme
  2. ^ "Sylhet Osmani airport a nightmare for passengers". The Daily Star. 2003-07-13. Retrieved 2007-05-23. {{cite news}}: Check date values in: |date= (help)
  3. ^ "Biman turns public limited company". The Daily Star. 2007-07-24. Retrieved 2007-07-24. {{cite news}}: Check date values in: |date= (help)
  4. ^ "Airports". Banglapedia. Asiatic Society of Bangladesh. Retrieved 2007-05-30.
  5. ^ a b "Nothing impossible in Biman purchase". The Daily Star. 2006-10-08. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  6. ^ "No plan to tackle critical problems". The Bangladesh Monitor. 2007-06-01. Retrieved 2007-06-10. {{cite news}}: Check date values in: |date= (help)
  7. ^ "Economic Review 2005" (PDF). Bangladesh Ministry of Finance. Retrieved 2007-06-09.
  8. ^ "Transport and Communication Review 2007" (PDF). Bangladesh Ministry of Finance. Retrieved 2007-06-09.
  9. ^ "Scared minister skips ATP flight, drives to Syedpur". The Daily Star. 2003-10-15. Retrieved 2007-06-01. {{cite news}}: Check date values in: |date= (help)
  10. ^ "Boeing 737-300 (S2-AEA)". AirFleets.net. Retrieved 2007-04-13. {{cite web}}: External link in |publisher= (help)
  11. ^ "Boeing 737-300 (S2-AEB)". AirFleets.net. Retrieved 2007-04-13. {{cite web}}: External link in |publisher= (help)
  12. ^ "Corporate profile". Biman Bangladesh Airlines. Retrieved 2007-06-09.
  13. ^ "Biman's call for strategic partner flops". New Age. 2006-11-18. Retrieved 2007-06-10. {{cite web}}: Check date values in: |date= (help)
  14. ^ "Biman offers its staff voluntary retirement". The Daily Star. 2007-06-06. Retrieved 2007-06-08. {{cite news}}: Check date values in: |date= (help)
  15. ^ a b c "Steps to make Biman PLC by June approved". The Daily Star. 2007-05-20. Retrieved 2007-05-22. {{cite news}}: Check date values in: |date= (help)
  16. ^ "Clipping the wings". The Daily Star. 2007-03-16. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  17. ^ "35 Biman staff sent on forced retirement". The Daily Star. 2007-03-28. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  18. ^ "Over 2,100 Biman staff want to quit voluntarily". The Daily Star. 2007-06-21. Retrieved 2007-06-21. {{cite news}}: Check |url= value (help); Check date values in: |date= (help)
  19. ^ a b "Biman flight catering keeps courting profits". The Daily Star. 2004-07-30. Retrieved 2007-05-22. {{cite news}}: Check date values in: |date= (help)
  20. ^ "Corporate profile 2". Biman Bangladesh Airlines. Retrieved 2007-06-09.
  21. ^ "Protect our small farmers from bird flu". The Daily Star. 2007-04-13. Retrieved 2007-05-22. {{cite news}}: Check date values in: |date= (help)
  22. ^ "Biman makes its last flight to NY today". The Daily Star. 2006-07-29. Retrieved 2007-06-17. {{cite news}}: Check date values in: |date= (help)
  23. ^ "Biman to reroute NY flight to halve loss". The Daily Star. 2006-03-05. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  24. ^ "Manchester Airport Reports and Images". Ringway Reports. April 2006. Retrieved 2007-05-25.
  25. ^ "Biman to suspend NY flights in June". New Age. 2006-05-04. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  26. ^ "International Aviation Safety Assessment Program". FAA. Retrieved 2007-05-25.
  27. ^ "What is happening to flight safety?". Weekly Holiday. 2003-09-26. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  28. ^ "Biman not to continue flight to New York". New Age. 2006-07-27. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  29. ^ "Biman in a ferrango". The Bangladesh Today. 2006-05-17. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  30. ^ "Bangladesh flight banned entry into US over safety issues". Aero-News Network. 2006-05-15. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  31. ^ "CAAB warned of poor aircraft maintenance". The Daily Star. 2006-05-16. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  32. ^ "U.S. Apologizes Again To Bangladesh For Barring Aircraft Landing". All Headline News. 2006-05-17. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  33. ^ "US says Biman landing ban was a mistake". Aero-News Network. 2006-05-17. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  34. ^ "Bangladesh Biman hits the buffers". BBC News Online. 2006-05-16. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  35. ^ "Saturday saw the last DC 10 Dhaka-New York flight". New Age. 2006-07-30. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  36. ^ "Biman flight schedule about to crash-land". The Daily Star. 2007-08-03. {{cite news}}: Check date values in: |date= (help); Unknown parameter |accesdate= ignored (|access-date= suggested) (help)
  37. ^ "Domestic Schedule". Biman Air. Biman Bangladesh Airlines. 2002. Retrieved 2007-05-31.
  38. ^ "Aircraft Registration History". AirFrames.org. Retrieved 2007-05-29.
  39. ^ "Biman's obsolete planes". The Daily Star. 2005-11-02. Retrieved 2007-05-29. {{cite news}}: Check date values in: |date= (help)
  40. ^ "Air Operators in Thailand". Retrieved 2007-05-29.
  41. ^ "Biman set to purchase two old F-28s". 2004-02-27. Retrieved 2007-05-29. {{cite news}}: Check date values in: |date= (help)
  42. ^ "Bangladesh Biman plans fleet renewal". The Independent (Bangladesh). 2005-05-29. Retrieved 2007-05-29. {{cite news}}: Check date values in: |date= (help)
  43. ^ "Biman seeks aircraft proposals". Flight International. 2000-07-18. Retrieved 2007-05-29. {{cite web}}: Check date values in: |date= (help)
  44. ^ Biman Bangladesh Fleet Facts (May 29, 2007)
  45. ^ "Dry Lease of two A310-300 and two A300-600 Aircraft". Central Procurement Technical Unit. Retrieved 2007-05-25. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  46. ^ "UAE firm lone bidder in Biman tender". The News. 2007-05-11. Retrieved 2007-05-14. {{cite news}}: Check date values in: |date= (help)
  47. ^ a b c "Biman Bangladesh Airlines Accident Reports". Aviation Safety Network. Retrieved 2007-05-26.
  48. ^ "49 Die in Bangladesh As Plane Plunges". New York Times. 1984-08-06. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  49. ^ a b "Chronology of Biman mishaps". The Daily Star. 2004-10-09. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help) Cite error: The named reference "TheDailyStar041009" was defined multiple times with different content (see the help page).
  50. ^ "Miracle of plane crash survivors". BBC News Online. 1997-12-25. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  51. ^ "F-28 aircraft shell to make restaurant". New Age Metro. 2005-10-09. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  52. ^ "First-ever airplane restaurant in city". The Daily Star. 2005-08-29. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  53. ^ "Crashed plane restaurant sold at profit". This is Local London. 2007-05-29. Retrieved 2007-06-04. {{cite news}}: Check date values in: |date= (help)
  54. ^ "Biman DC-10 skids off runway". The New Nation. 2005-07-01. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  55. ^ "Biman pilot sacked over DC-10 crash". The Daily Star. 2006-09-10. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help)
  56. ^ "Dubai Jet Accident Injures 14". CNN. 2007-03-12. Retrieved 2007-05-25. {{cite news}}: Check date values in: |date= (help); Cite has empty unknown parameter: |1= (help)
  57. ^ "Biman gets $22 million". The Daily Star. 2007-06-26. Retrieved 2007-06-26. {{cite news}}: Check date values in: |date= (help)
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