Biman Bangladesh Airlines


Biman Bangladesh Airlines, commonly known as Biman, is the national flag carrier of Bangladesh. With its main hub at Hazrat Shahjalal International Airport in Dhaka, the airline also operates flights from its secondary hubs at Shah Amanat International Airport in Chittagong and Osmani International Airport in Sylhet. The airline provides international passenger and cargo services to multiple destinations and has air service agreements in 42 countries. The headquarters of the airline, Balaka Bhaban, is located in Kurmitola, in the northern part of Dhaka. Annual Hajj flights, transporting tourists, migrants, and non-resident Bangladeshi workers and the activities of its subsidiaries form an integral part of the corporate business of the airline.
Created in February 1972, Biman enjoyed an internal monopoly in the aviation industry of Bangladesh for 24 years, until 1996. In the decades following its founding, the airline expanded its fleet and destinations but it was adversely affected by corruption and mismanagement. At its peak, Biman operated flights to 29 international destinations, extending from New York City in the west to Tokyo in the east. The airline was wholly owned and managed by the government of Bangladesh until 23 July 2007, when it was transformed into the country's largest public limited company by the Caretaker Government of Bangladesh. Since becoming a public limited company in 2007, the airline has reduced staff and begun to modernize its fleet. The airline had signed a deal with Boeing to buy ten new aircraft and options for ten more in 2008. After taking delivery of the new planes, Biman expanded its destinations and added in-flight amenities such as onboard internet, WiFi, mobile telephony and live TV streams.
During his visit to Dhaka in September 2023, French President Emmanuel Macron and then Bangladesh Prime Minister Sheikh Hasina announced the order of ten Airbus A350 aircraft for Biman. The Airbus order consists of the purchase by Biman Bangladesh Airlines of two A350F cargo aircraft and eight A350 passenger aircraft. The aircraft will be delivered in stages with two passenger A350 aircraft joining the Biman fleet first. Biman Bangladesh Airlines is certified as safe to fly in Europe by the European Union Aviation Safety Agency. In addition, Biman has also successfully passed the IATA Operational Safety Audit and since then, the airline has resumed flights to some of its previous destinations in Asia and Europe. In recent times, Biman Bangladesh Airlines has seen a marked improvement in punctuality, as well as in on-time flight performance, under its new management team.

History

Biman Bangladesh Airlines was established on 4 January 1972 as Bangladesh's national airline under the Bangladesh Biman Ordinance. The initiative to launch the flag carrier was taken by 2,500 former employees, including ten Boeing 707 commanders and seven other former pilots of Pakistan International Airlines, who submitted a proposal to the government on 31 December 1971 following the independence of Bangladesh. The airline was initially called Air Bangladesh but was soon changed to Biman Bangladesh Airlines, its current name.
File:Fokker F27-600 S2-ABJ B Biman Dum Dum 08 09 74 edited-4.jpg|thumb|left|Fokker F-27 Friendship of Biman Bangladesh Airlines at the then Dum Dum Airport in 1974.
On 4 February 1972, Biman started its domestic services, initially linking Dhaka with Chittagong, Jessore and Sylhet, using a single Douglas DC-3 acquired from India. Following the crash of this DC-3 on 10 February 1972, near Dhaka, during a test flight, two Fokker F27s belonging to Indian Airlines and supplied by the Indian government entered the fleet as a replacement. Shortly afterwards, additional capacity was provided with the incorporation of a Douglas DC-6, loaned by the World Council of Churches, which was in turn replaced with another Douglas DC-6, a DC-6B model leased from Troll-Air, to operate the Dhaka-Calcutta route. On 4 March 1972, Biman started its international operations with a weekly flight to London using a Boeing 707 chartered from British Caledonian. The short haul fleet was supplemented by a Fokker F27 from India on 3 March 1972; the aircraft was employed on a daily scheduled flight between Calcutta and Dhaka on 28 April 1972. Three additional Fokker F27s were acquired during March and September of that year. In the first year of operation, Biman operated 1,079 flights carrying just over 380,000 passengers.
File:Biman Bangladesh Airlines Boeing 707-320C LHR S2-ACE Feb 1981.png|thumb|A Biman Bangladesh Airlines Boeing 707-320C on short final to London Heathrow Airport in 1981.
Four Fokker F27s joined the fleet in 1973, enabling Biman to double the frequency of the Kolkata flight to a twice daily service. A Boeing 707 was added to the fleet in September and the flight to London became twice-weekly, while a Chittagong–Kolkata flight also began operating. In 1974, operations were extended to Kathmandu, Bangkok and Dubai. In 1976, Biman sold two of its Fokker F27s and bought another Boeing 707 to extend international services to Abu Dhabi, Karachi and Mumbai. Singapore was added to Biman's list of international destinations, when a third Boeing 707 was purchased in February 1977, followed by Jeddah, Doha and Amsterdam the following year, which also saw the purchase of its fourth Boeing 707. In 1977, Biman was converted into a public sector corporation to be governed by a board of directors appointed by the government. The airline broke even for the first time in 1977–78, and made a profit the following year. International destinations expanded to include Kuala Lumpur, Athens, Muscat and Tripoli in 1979, followed by Yangon, Tokyo and Dhahran in 1980. Biman took delivery of its first 85-seater Fokker F28-4000 in 1981. In 1983, three Douglas DC-10s joined the fleet and the airline started to phase out the Boeing 707s. The flight network expanded further to include Baghdad, Paris and Bahrain. On 5 August 1984, Biman faced its worst accident ever when a Fokker F27 flying in from Chittagong crashed near Dhaka, killing all 49 on board. The long haul fleet was then supplemented by the purchase of two new Airbus A310s in 1996, followed by the addition of two more in 2000, from Singapore Airlines and Air Jamaica, and another in 2003.

Corporate affairs

Key people

Retired Senior Secretary Mostafa Kamal Uddin replaced former Senior Secretary Sajjadul Hassan, who had completed his term, as the chairman of the airline in January 2023. Additional secretary to the government Shafiul Azim is the chief executive officer and managing director. Previously, Kevin John Steele, who served as MD and CEO of Biman from March 2013 to April 2014, was the first foreign national in the airline's history to be appointed CEO and MD of Biman. He was chosen from a pool of 42 local and foreign candidates after a competitive selection process. Steele was a British citizen who had many years of experience working in management and administrative positions at British Airways and other airlines around the world. Steele resigned from Biman MD and CEO positions in December 2013 citing health issues. Steele left office on. Kyle Haywood took office as Biman MD and CEO on 5 January 2015. A British national, Haywood was the second foreign national to hold the airline CEO position after Kevin Steele.

Ownership

The airline was wholly owned by the Bangladeshi government through the Bangladesh Biman Corporation since its inception. In 1977, Biman was converted into a public sector corporation which afforded Biman limited autonomy, led by a government-appointed board of directors. The authorised share capital was increased to BDT 2 billion in 1987, and Biman was transformed into a public limited company, the largest in Bangladesh, in 2007.

Privatization

1980s

During the late 1980s, Hossain Mohammad Ershad, President of Bangladesh at the time, served as president of Biman. After an early period of expansion and growth, Biman entered an era of nose-diving profits and slow growth, exacerbated by incompetent and corrupt management, who padded purchases, falsified repair bills, and kept unprofitable routes in operation for political reasons. Research conducted in 1996 found that Biman had 5,253 non-flying personnel, 30 percent more than Singapore Airlines, a carrier who operated a fleet almost ten times the size of Biman's. The report described Biman as "poorly managed, overstaffed, under-capitalized, and subject to excessive political interference in its day-to-day management."

1990s

In the 1992–93 fiscal year, accounts under the Ministry of Civil Aviation and Tourism revealed that BDT 22 million in tax was not paid to the government. The audit carried out in 1999, also showed that Biman was owed BDT 2.2 million by travel agents from the proceeds of ticket sales, most likely with the collusion of Biman officials. Additionally, BDT 2.4 million was overpaid as incentive commissions to the sales agents in violation of Biman policies. In 2007, the caretaker government launched an anti-corruption drive. This was shortly followed by the forced retirement of 35 other employees and officials, some of whom were close aides of Shamim Iskander. In, Iskander, younger brother of former premier Khaleda Zia, was sent to jail over charges of concealing information regarding his wealth and not for his connection with Biman.
Faced with growing losses from the late 1990s onwards, the government offered 40 percent of Biman to foreign airlines in 2004, hoping a buyer would take over the management of the carrier. However, the proposal demanded that many decision-making rights remain within the Bangladesh government, and the offer was ignored by outside airlines. A similar initiative in 1998 cost Biman $1.6 million in consultancy fees with no positive results.