Biman looks for partnership with a Gulf airline

07 Sept 2006

Dubai: Bangladesh's troubled national carrier Biman is seeking a partnership with a Gulf carrier, especially Emirates, a top official said.

"We are actively looking for a strategic partnership with any strong Gulf airline to help us expand our business. We'd be happy if Emirates comes forward with its own bid," M.A. Momen, managing director of Biman Bangladesh Airlines, told Gulf News on Tuesday.

Momen was in Dubai to check out two aircraft to be taken on lease to run its Haj operations, which are scheduled to begin this month.

The Bangladesh government will retain a 30 per cent minority stake and the remaining nine per cent will be reserved for Biman employees, as per the tender document.

"Emirates has successfully rescued Sri Lankan Airlines and brought it back to profitablility. However, in Bangladesh we do not have any of the ethnic or social problems that Emirates management faced in Sri Lanka," he said. Emirates holds a 43.5 per cent stake in Sri Lankan Airlines.

"With Biman, Emirates or any other strategic partner would enjoy a solid ethnic passenger base. Bangladesh is a growing tourism and aviation market," he said.

More than four million Bangladeshis live abroad and regularly travel to Bangladesh. Despite the difficulties, Biman's passenger numbers have never declined. Instead, they continue to rise.

Biman's current financial liability stands at approximately Dh800 million, Momen said. Corruption and financial mismanagement largely created the present crisis, he claimed.

"Besides, old and fuel inefficent aircraft is another problem. We need a fleet of next-generation fuel efficent aircraft to become profitable," he said.

The crisis reached its peak last week when Biman employees threatened to cripple the carrier with an indefinite strike as the airline failed to pay their wages. A number of fuel suppliers were also preparing to take legal action against the carrier upon its failure to pay outstanding debts. Biman owes Dubai's EmoJet Dh11 million - one of its many liabilities.

Corruption created current crisis

Biman's current financial liability stands at approximately Dh800 million.

Corruption and financial mismanagement largely created the present crisis which has not been helped by an ageing and fuel-inefficient fleet.

The crisis reached its peak last week, when Biman employees threatened to cripple the carrier with an indefinite strike, as the airline failed to pay their wages.

Biman earlier this week received government backing to bail it out of the current financial crisis, its worst in the airline's 34-year history.