Biman

By Rahim Ahmad Munshi, Kingsford, Sydney, Australia
19 July 2005, 18:00 PM
It's in the news that the govt has approved a proposal to buy a few aircraft for Biman Bangladesh Airlines. I am shocked to hear the news. Will new aircraft solve Biman's performance and management problems? Of course not. We all, including the Honourable Finance Minister, know it. We need to define our Objectives and Goals before pumping in Tax Payers' money in a big hole. We need to plug all other holes to stop draining of our hard-earned money. Here are a few points for the State Minister for Civil Aviation to ponder.

Do we need a national airline? Many countries including the US, UK do not have state owned airlines. They are all privatised to improve efficiency and profitability. So, why do we have to have a state owned airline? What purpose it's actually serving? We have deregulated Telecom and Electrical Power Generation, why not international routes for airlines? Biman is operating in a very complex international commercial market. If we want to operate Biman with profits in mind it has to be run with compatible policies and infrastructure. And it's not easy. If our objectives are something else we don't know about, please spell them out.

Why so many types of aircraft? If the government goes ahead with plans to buy B777-200 and A330-200s, Biman will end up with having Five different types of aircraft. Will Biman be able to build up capability to maintain them? The simple answer is no. Maintenance is one of the major heads of expenditure of an airline.

Who is managing Biman? A very tricky question. Do we have a Business Plan to manage it ? Of course not . Biman does have a Management, but that is run by everybody else including Unions. It is apparent that policy decisions are never taken by Biman Management. It's taken by others.

Biman has been historically used as a vehicle for corruption. Buying new aircraft to try to make it profitable is just another scam may be. Biman is not going to make any profit if they do not reassess their route structure. They must trim down their workforce. At almost 500 employees per aircraft, it's almost 300 % over the industry average for Biman's kind of set-up. It's sad to see draining of hard earned national resources so openly and brazenly.