Biman Bangladesh Airlines incurred a loss of Tk 199 crore in the last fiscal year (2010-11).

It suffered around Tk 80 crore loss in the previous year (2009-10), for which the civil aviation ministry demanded an explanation from the Biman board.

Biman's financial report for 2010-2011 that contained the estimate of loss last year was approved by the Biman board at its Annual General Meeting at the Balaka Bhaban in the capital yesterday.

Contacted, Managing Director of the national airlines Muhammad Zakiul Islam said Biman's revenue last year increased by Tk 358 crore over that in previous fiscal year. It also carried 1.5 lakh more passengers than in the previous year.

He attributed the increased loss mainly to fuel price rise, payment for two leased aircraft, payment of loan interest, cost of hiring of foreign pilots and expenditure for training and travel of engineers for the two new Boeing 777-300 ER aircraft. ASKea anout wnat tney are going to do to improve the situation, he said they will identify the loss-making routes and stop operation of flights or bring down their frequency on those routes.

He hoped for an improved situation in the next fiscal year as the two new Boeing 777-300ER have started operation.

Biman owes more than Tk 247 crore to its fuel supplier Padma Oil, overTk 270 crore to the Civil Aviation Authority of Bangladesh and Tk 56 crore to the National Board of Revenue in travel taxes, its officials said.

According to Bangladesh Economic Review 2009-10, Biman made profits of Tk 15 crore in fiscal 2008-'9 and around Tk 6 crore in 2007-'8.