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Biman moves to strengthen fleet

Airbus officials due in Dhaka early Feb

Sohel Parvez
A team of Airbus officials is expected in Bangladesh early February to make a fresh offer to supply aircraft to Biman Bangladesh Airlines, with the national carrier attempting to strengthen its ageing fleet, the company's chief executive said yesterday.
"We expect Airbus to come by early February with their new proposal. Wc are hopeful that our efficiency will increase by adding new aircraft to our fleet," MA Momen, chief executive of Biman Bangladesh Airlines, toldThe Daily Star.
Airbus, a subsidiary of the European Aeronautic Defence and Space Company (EADS) is set to come to Bangladesh after the US aircraft maker Boeing Company offered to supply Biman eight aircraft in two phases up to 2017.
Experts believe the cost of eight suitable aircraft would range between US$800 million and $1.5 billion, depending on the aircraft selected.
“We need to compare the proposals before taking any decision,” the Biman chief said.
Biman moved to collect fresh proposals on purchasing aircraft after it became a public limited company in July last year. While the company remains 100 per cent state owned, the PLC entity allows Biman's board of directors to make its own decisions, including the procurement of new aircraft.
The rising cost of jet fuel has hit hard the Biman's current fleet of 12 planes, including one leased Boeing 747. This is because the ageing planes have poor levels of fuel economy and high maintenance costs in comparison with
newer aircraft.
At present eight planes are in operation while one remains idle and three under maintenance.
The aircraft of the carrier are grounded frequently due to technical faults resulting from the fleet made up of mostly of 17- 19-year-old aircraft and two relatively new planes.
Insiders said on many occasions, during the BNP regime both the Boeing and Airbus made offers to renew Biman's fleet.
In November last year, Boeing offered a fresh proposal to Biman for eight new aircraft, setting a deadline to sign a memorandum of understandingbyJanuary 15,2008.
“We have requested that Boeing extend the deadline till March this year," a Biman's spokesperson said.
Imran Asif, an aviation industry consultant, suggested "that the national carrier needs to compare the offers of both the aircraft makers based not only on acquisition costs but also the operating cost and residual value ofthe planes.
"If Biman takes the decision on the basis of the acquisition cost
offered by the companies, it might be a wrong one,” he said.
Bangladesh's aviation industry, which, according to national encyclopedia Banglapedia, will grow about 7.5 percent a year till 2010, witnessed an increased entry of both domestic and international carriers. Six carriers, including domestic operator United Airways, entered Bangladesh's market last year.
Another local carrier Best Air launched its operation on January 14 th is year.
Private GMG Airlines, which will launch flights to Dubai from February 1, is to lease a new Boeing 747-300 aircraft, the company said.
With the induction of the jet propelled 540-seat aircraft, GMG's planes will include three Dash8, two McDonnell Douglas and two Boeing 747-300s.
The airline that has local and foreign operations will further increase its international flights especially in the Middle East.
GMG started operations in 1998 and plans to fly to Muscat, Doha. Kuwait City and Karachi by2008.