Biman to buy 10 Airbus aircraft, deal by 31 Aug: Millat

State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat on Tuesday confirmed that Biman Bangladesh Airlines will purchase 10 aircraft from European aerospace giant Airbus as part of the government's move towards a mixed-fleet strategy.

"We will sign the agreement with Airbus by 31 August," Millat said, adding the aircraft are expected to start joining Biman's fleet from 2031.

The state minister said details of the procurement, including the price and other terms and conditions, would be disclosed after the agreement is concluded.

He said the government is negotiating the deal keeping Bangladesh's national and commercial interests at the forefront.

The development marks a significant turn in one of the most closely watched aircraft procurement contests in Bangladesh's aviation sector, coming shortly after Biman moved to acquire 14 aircraft from US aerospace manufacturer Boeing.

The Boeing package comprises eight Boeing 787-10 Dreamliners, two Boeing 787-9 Dreamliners and four Boeing 737 MAX 8 aircraft, involving an estimated $3.7 billion.

Against that backdrop, Airbus recently renewed its push to enter Biman's fleet, submitting a proposal to the airline's techno-finance committee for four A350-900 wide body and six A321neo narrow body aircraft, according to sources familiar with the negotiations.

Airbus Vice President Edward Delahaye also recently met Civil Aviation and Tourism Minister Afroza Khanam, State Minister Millat and senior Biman officials in Dhaka to advance the proposal.

Following negotiations, the government has now decided to proceed with the acquisition of 10 Airbus aircraft, Millat said.

He said maintaining a balanced commercial environment with Bangladesh's major international partners was among the considerations behind the purchase, while stressing that the decision was part of a broader government policy to transform Biman into a mixed-fleet carrier.

The move would represent a major shift in Biman's fleet strategy, with aircraft from Boeing and Airbus, the world's two dominant commercial aircraft manufacturers, operating side by side in its future fleet.

The decision also comes as the government reviews a long-term roadmap to expand Biman's fleet to 47 aircraft by fiscal year 2034-35 to modernise the flag carrier, expand international connectivity and support Bangladesh's ambition to emerge as a regional passenger and cargo aviation hub.

Airbus and Boeing have competed for a place in Biman's future fleet for several years, drawing considerable diplomatic and commercial interest from the United States and European countries.

Airbus' campaign gained momentum during French President Emmanuel Macron's visit to Bangladesh in 2023, while a possible purchase of 10 Airbus aircraft, including freighters, also featured in Bangladesh's engagements with European partners.

Boeing subsequently secured the 14-aircraft deal against the backdrop of broader Bangladesh-US trade negotiations, including the Agreement on Reciprocal Trade.

Airbus, however, continued its engagement, offering a combination of wide body and narrow body aircraft. The A350-900 would primarily serve long-haul operations, while the A321neo could be deployed on regional, Gulf and medium-haul Asian routes depending on Biman's network requirements.

The government's mixed-fleet position was also outlined last week by State Minister for Foreign Affairs Shama Obaed Islam, who said Bangladesh needed aircraft from both manufacturers.

"Our country needs both Boeing and Airbus. We will purchase both," she told reporters at the Ministry of Foreign Affairs.

Dismissing suggestions that the Boeing procurement contradicted Bangladesh's interest in Airbus or was being made under external pressure, Shama said the government would purchase what the country required while maintaining prudent economic management.

"The prime minister inherited a fragile economy (from the previous governments). To put the economy on a stronger footing, we need to exercise austerity on the one hand, while also purchasing what the country requires. We need both Boeing and Airbus. We will buy both," she said.

She also said Bangladesh does not give preferential treatment to any particular country in trade and investment, stressing that "the interests of Bangladesh are always given top priority when it comes to investment."

The Airbus issue also featured prominently at a recent meeting between Civil Aviation and Tourism Minister Afroza Khanam, State Minister Millat and ambassadors and senior diplomats from France, the United Kingdom, Spain, Germany and the European Union.

During the meeting, the government conveyed its intention to include Airbus aircraft in Biman's long-term fleet expansion programme while safeguarding national interests.

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Aviation expert ATM Nazrul Islam said that a mixed-fleet strategy could provide greater operational flexibility, stronger route adaptability and long-term commercial efficiency.

He said additional procurement could be commercially justified if new aircraft were intended to replace ageing assets, but expansion without a clearly defined long-term network and profitability strategy would require careful assessment.

"A mixed fleet gives an airline the ability to deploy the most suitable aircraft depending on passenger demand, route performance and cost structure. In many cases, switching to a different aircraft type can significantly improve route economics and reduce operating costs," Nazrul said.