The government is contemplating offloading 40 to 60 percent shares of Biman Bangladesh Airlines with a view to improving the national carrier's financial performance through efficient management.

The government is agreed in principle to offer shares of Biman which will improve management of the airline, State Minister for Civil Aviation and Tourism Mir Mohammad Nasiruddin said yesterday.

Addressing the opening function of GMG Airlines' international flight at Chittagong Shah Amanat International Airport, he said, "We must allow more local private carriers and foreign airlines in line with the government's open sky

policy."

Referring to Chittagong airport's handling service which has been given to Thai Airways, he said this is a clear message to Biman that government would no longer breastfeed Biman. "It must improve performance."

The civil aviation minister did not make it clear whether the government will find a foreign airline as partner of Biman to sell its shares or offload the shares to local investors through initial public offering.

He however mentioned that there were some administrative problems in offloading shares of the national flag carrier.

Nasir said the government wants to ensure maximum utilisation of the country's three international airports. "So we encourage

foreign airlines to come to Bangladesh especially towards Chittagong and Sylhet airports."

Speaking at the function Chittagong Stock Exchange (CSE) President Habibullah Khan said capital market could be a good source of fund for the airlines for purchasing more aircraft to increase flights both in domestic and international routes.

The CSE president said all the reputed airlines in the world have raised funds through floating their shares in the capital market. "But none of the Bangladeshi airlines has floated their shares," he regretted.

Khan said GMG Airlines has expanded its operations to international routes and the company may think to go for expansion in future

by introducing operations on more international routes.

"If they do so they will need more and large aircraft, which will require huge funds," he said. "For purchasing an aircraft it will not be wise to receive loans from traditional banking system or any other financial institutions as they (the operators) have to count huge amount of interests for the loans."

The CSE president said GMG's latest venture may also encourage other airlines to take such initiatives in future.

“Biman and GMG Airlines already have enough confidence in people's mind. So they can issue IPOs with high premium," he said.