Biman Bangladesh Airlines has won board approval to start advertising for equity partners as part of a government-backed partial privatisation plan.
Board approval was granted late in October for an advertising campaign aimed at attracting an equity-based partnership with an overseas airline.
Biman now intends to invite potential partners to request access to its offering memorandum. Under the privatisation plan, 9% of the carrier is to be sold to employees and 40% to an international carrier or carriers by February. The government will retain 51%.
The carrier began moving forward with its privatisation plan earlier this year, when it hired Citigroup units Citibank and Salomon Smith Barney, as well as strategic aviation consultancy Simat, Helliesen & Eichner (SH&E) and legal firm Clifford Chance as advisers.
Biman is paying its advisers through a grant provided by the World Bank. Its privatisation programme is being handled in three phases. The first is focused on restructuring efforts, the second on the search for a strategic airline partner and the third covers the sale of equity.
As part of its preparations for privatisation, Biman has been working to renew its ageing fleet, which for international services comprises Airbus A310s and McDonnell Douglas DC-10s.
It is assessing Airbus A340-300s and Boeing 777-200ERs, having issued requests for proposals for four new aircraft in July. It is also taking bids on replacement aircraft for its DC-10s under 10-year agreements through either straight operating leases or with purchase options.
Biman is the only Bangladeshi passenger carrier to operate international flights. Some believe it will eventually halt loss-making domestic services and focus entirely on international operations.
Source: Airline Business
