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Monday, March 21, 2011

Biman Bangladesh Airlines

Biman Bangladesh Airlines (Bengali: বিমান বাংলাদেশ এয়ারলাইনস) is the flag carrier airline of Bangladesh. Its main hub is at Shahjalal International Airport in Dhaka, and also operates flights from Shah Amanat International Airport in Chittagong, earning revenue from the connecting service to Osmani International Airport in Sylhet. Biman provides international passenger and cargo service to Asia and Europe, as well as major domestic routes. It has air service agreements with 42 countries, but only flies to 16. The airline was wholly owned and managed by the Government of Bangladesh until 23 July 2007, when it was transformed into the country's largest public limited company by the Caretaker Government of Bangladesh. The airline's headquarters, Balaka Bhaban, is located in Kurmitola, Dhaka.

Created in February 1972, Biman enjoyed an internal monopoly in the Bangladesh aviation industry until 1996. In the decades following its founding, the airline expanded its fleet and destinations, but it was adversely affected by corruption and mishaps. At its peak, Biman operated flights to 29 international destinations as far away as New York City to the west and Tokyo to the east. 

The airline has suffered heavy financial losses, and has a reputation for poor service because of regular flight cancellations and delays caused by its ageing fleet. For safety reasons, some of Biman's long-haul aircraft have been banned in the United States and the European Union. Annual Hajj flights, transporting non-resident Bangladeshi workers and migrants, and the activities of its subsidiaries, form an important part of the carrier's business. 

Rising oil prices have created additional pressure on the airline's finances, which is widely reported to have failed to meet its payment obligations to the state-owned petroleum corporation, BPC. Under Skytrax's five-star rating systems, Biman merits two stars. The carrier is currently facing competition from a number of local private airlines as well as some international carriers, which offer greater reliability and service standards, targeting the country's air transport sector which is experiencing an 8% annual growth rate, owing to a large number of non-resident Bangladeshis.

Since becoming a public limited company, the airline has reduced staff and begun to modernise its fleet. Biman has made a deal with Boeing for 10 new aircraft, along with options for 10 more. The carrier is in the process of leasing some aircraft in the interim to restart flights to some of its previous destinations in Asia, Europe, and North America.

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