Thursday, March 21, 2019 | ePaper

Biman plans expansion

  • Print
Kazi Zahidul Hasan  :
Biman Bangladesh Airlines has taken an aggressive expansion plan in a bid to make its operation profitable.
At the same time, it has also undertaken several cost reducing measures to minimize its operating expenses, which increased by 14 per cent in the last fiscal year.
The national flag carrier suffered Tk 201 crore net loss in the last fiscal year (2017-18) owing to higher operating costs and stiff competition with its domestic and international peers.
"As part of the aggressive expansion plan, Biman is increasing its fleet with inclusion   
of latest version aircrafts and expanding destinations. This move will help it reduce operational costs and improve efficiency," Shakil Meraj, General Manager (Public Relations) of Biman Bangladesh Airlines told The New Nation on Wednesday.
He said, four aircrafts will join Biman's fleet by this year. Of them, two Boeing 737 aircrafts will be taken on long-term lease and it will get delivery of two ultra-modern 787-8 Dreamliners from the US Boeing Company. By this time, flight network will also be expanded to Guangju, Madina, Delhi/Colombo and second destination in the UK. "Such initiatives are expected to increase number of passengers as well as income for Biman," he added.
When asked, Shakil Meraj said, the national flag carrier suffered a big loss in last fiscal year despite a double-digit growth in passengers. It happened mainly due to the significant rise in its operating cost, caused by soaring fuel prices and currency fluctuation.  
Biman's operating expenses reached Tk 4,750 crore during the last fiscal year, while it was Tk 4,161 crore in the fiscal year 2016-17, according to an official figure.
"Fuel accounts for 50 per cent of Biman's operating cost and the airline's fuel cost had to spend Tk 300 crore more to buy fuel during the last fiscal year," he added.
Biman's fuel expenses jumped 25 per cent on year-on-year to Tk 1,501 crore in the last fiscal year as compared to Tk 1,201 in fiscal 2016-17, show an official figure.
The figure also shows that currency fluctuation cost Biman Tk 93 crore loss in the last fiscal.
 "To rationalize the fuel cost, the authorities of Biman have already engaged talks with the state oil agencies. Both sides had several meetings to fix a logical price of jet fuel. Supply of jet fuel in logical price will help reduce Biman's operating cost significantly," hoped Shakil Meraj.
He mentioned that Biman planned to increase yield of per seat to make additional income. Besides, additional income is expected to come from ground and cargo handling. "The airline expects return to profit in this fiscal year taking advantage of the aggressive expansion plan, operational efficiency and additional income," said Shakil Meraj.
The national flag carrier had flown 26.11 lakh passengers (international, domestic and hajj) during the financial year 2017-18 compared with 23.51 lakh during the previous year.
During the 2017-18 financial year, Biman recoded 11 per cent passenger growth against the enhanced capacity of 5.0 per cent.
However, passengers yield has gone down by 7.0 per cent during the period amid stiff competition from domestic airlines and competition with the fifth freedom fare of the middle-east carriers.
During the 2017-18 financial year, Biman earned Tk 3,330 as passenger revenue, Tk 245 crore as cargo revenue and earned Tk 54 crore from excess baggage and Tk 1,157 from others. Non-transport revenue increased by 30 per cent and stood at Tk 1,126.77 crore.   

More News For this Category

Promise of over bridge is not competence to stop killer buses

Blockades and demonstrations in multiple locations across Dhaka city under the familiar slogans of "We Want Justice" occurred once again on Wednesday after last August when students effectively shut

Allegations of abduction

Al Jazeera News :A senior security official in Bangladesh has been accused of abduction and also for interrogating people to settle a business dispute, reports Al Jazeera on Wednesday.The allegations

Resentment growing

Staff Reporter :The country's textile sectors' trade bodies on Wednesday strongly opposed the gas distribution companies' proposals to increase gas tariff amid businesses growing resentment over the move. Terming the

 BUP students halt protest till Mar 28, a large portion vows to continue

BUP students halt protest till Mar 28, a large portion vows to continue

Staff Reporter :The students of Bangladesh University of Professionals (BUP), who were continuing agitation for safe road and punishment to the killer of their fellow Abrar, postponed their protest till

Beware the Mideast's falling pillars

By Thomas L. Friedman :For the last half-century the politics of the Middle East has been shaped by five key pillars, but all five are now crumbling. A new Middle

NZ to broadcast Azaan on Friday in solidarity with Muslims

ZEO News, Christchurch :New Zealand Prime Minister Jacinda Ardern on Wednesday said the nation will observe a two-minute silence in memory of the Christchurch martyrs and the Azaan (the call

3 killed as train hits motorbike

UNB, Gopalganj :Three motorcycle riders were killed after their vehicle was hit by a train at Bhennabari level crossing in the Sadar upazila early Wednesday.Two of the deceased were identified

HC asks Suprovat to pay Tk 10 lakh to Abrar's family

The High Court on Wednesday ordered Suprovat Paribahan to pay Tk 10 lakh to the family of Bangladesh University of Professionals (BUP) student Abrar Ahmed Chowdhury who was killed in

Ardern calls for global anti-racism fight

Media captionNew Zealand PM Jacinda Ardern spoke to the BBC's Clive MyrieNew Zealand Prime Minister Jacinda Ardern has called for a global fight to root out racist right-wing ideology following

Schoolgirl loses leg due to reckless driving in Jashore

Md Joynal Abedin Khan :After loss of hands and legs in separate road crashes, another schoolgirl lost her leg and two others suffered injuries when a rickshaw-van carrying them was