Bangladesh's national carrier Biman is again searching for a strategic partner to help it with a badly needed financial turnaround and fleet modernisation.
The cash-strapped airline and the government have for years been talking about a privatisation by bringing in a foreign airline partner, but all previous attempts have failed in part because of employee and political opposition.
Employees fear job losses and they have been successful in having previous privatisation efforts withdrawn, in part by threatening strike action. But now the airline admits to being in more serious financial trouble than ever before and the government has issued new international tender notices advertising for a strategic partner.
Biman was recently forced to drop several international services because of financial difficulties and because of issues related to its ageing fleet, which comprises Airbus A310s, McDonnell Douglas DC-10s and Fokker F28s. It has advertised in the past for offers on new Airbus or Boeing widebodies but failed to conclude any deals as government approvals were never secured.
Biman's fresh attempt to bring in a foreign partner comes as it prepares to face new competition. United Airways Bangladesh plans to start operations by year-end using ATR or Bombardier turboprops, and it claims to have been successful in raising more than $6 million so far. It will be competing against Biman as well as the country's only privately owned scheduled operator, GMG Airlines. United Airways plans to launch with domestic services and later expand into the international market. ■
Source: Airline Business
