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Biman-Boeing plane deal delay

Star Business Report
Biman Bangladesh Airlines has extended the deadline for signing the final deal with Boeing by seven days on purchasing eight new aircraft worth USS 1.265 billion.
The decision to extend the time came just before the scheduled date of sealing the final deal with US plane maker Boeing. Both the sides were scheduled to sign the agreement on April 15,2008.
Biman said both the sides have decided to extend the time in an attempt to complete the 'negotiation' needed for signing the final deal. The national flag carrier however
said there would be no rise in Boeing's existing price offers due to the change in the deadline.
The Biman is hopeful to sign the final deal on or before April 22, said Nafees Ahmed Imtiazuddin, director (Planning) of Biman Bangladesh Airlines.
"We are still in negotiations and we need additional time to complete,” he said.
Biman on March 15 this year signed a primary deal with the US plane maker Boeing to buy eight new aircraft aiming at bringing dynamism in Its operation.
Major part of the finance will be funded by US based EXIM
Bank and syndicated bank loans, according to Biman.
The airline currently has a fleet of dozen aircraft, including four F 28s and three A 310-300s.
With an expanded fleet, it hopes to take off and give domestic private carriers serious competition, besides cutting down its own losses, estimated at $ 100 million during 2006-07.
Under the initial deal, Boeing is expected to deliver the planes in two phases. Four Boeing 777-300 ER and four Boeing 787-8 will be delivered in 2013 and 2017 respectively.
In the interim period, Biman
said Boeing will lease Biman four used 777-300ER in 2009 and 2010 and four used 787-8 in 2011-12 to help the national flag carrier cope with a surging passengers' growth.
The national flag carrier, as part of the deal, has paid $ 1.54 million to Boeing as booking fee.
Under the accord, the Boeing will not only deliver aircraft, but also provide technical and training supports for Biman’s staff.
"The extension has been made as permitted by the MoU,” said the Biman official.
"We are taking the time that is absolutely required.” he added.