A Citibank-led consortium is preparing a restructuring plan with the aim of attracting a strategic partner for Biman Bangladesh Airlines. British Airways and Singapore International Airlines are among those reported to be interested.
The consortium consists of consultancy SH&E, legal firm Clifford Chance Wirot and Citigroup (including Citibank and Salomon Smith Barney). A memorandum of understanding (MoU) has been signed between the airline and consortium members. A Biman official says the consortium is to submit its report by the middle of this year.
The airline is offering the strategic partner a 40% stake and is seeking help to fund its expansion plans, according to the official. Biman would retain a 51 % controlling stake and offer 9% to its employees.
Earlier, The World Bank - which is providing $2 million for the privatisation programme - cleared the MoU. Biman has also received clearance from the Bangladeshi ministries of law, finance and civil aviation.
The airline operates flights to 24 destinations worldwide with four McDonnell Douglas DC-10-30s, two Airbus A310s, three Fokker F28s and two British Aerospace ATPs.
Source: Airline Business
