Biman joins Tk10,000 crore revenue club

Biman Bangladesh Airlines has recently achieved a remarkable milestone, generating revenue of Tk10,000 crore — a first in its history. This significant accomplishment was a result of the  post-pandemic resurgence in air travel. 

In a recent interview with The Business Standard, Shafiul Azim, the managing director of the national carrier, shared insights into their efforts to enhance service quality and their approach to meeting the escalating demand.

In the past, Biman Bangladesh Airlines had a reputation for flight disruptions, particularly flight delays. Can you provide an update on the current status of flight delays?

Our previous flight disruption issues were interconnected with several factors. Initially, our fleet size was insufficient to meet the demand. However, Prime Minister Sheikh Hasina has taken proactive steps to address this by gradually adding more aircraft to our inventory.

In some instances, flight delays are influenced by factors beyond our control, such as natural calamities or issues at the airports, including weather conditions. To assess our current performance, you can look at our On-time Performance (OTP), where achieving 80% on-time flights is considered a good standard, and our OTP currently stands at 82%.

Furthermore, when it comes to international flights, there is no room for delays. We face penalties if we fail to adhere to the allocated ground time. Therefore, punctuality is not just crucial for our reputation and passenger satisfaction, but also for our financial performance. Delayed flights result in losses for us, which is why we take the delay issues very seriously.

However, it is crucial to understand that aviation is a complex field, with many highly sophisticated machines and variables that can occasionally be beyond our control. In such cases, we may need to seek external assistance.

We are committed to minimising disruptions as much as possible. We are actively investing additional resources to reduce delays further. Our goal is to substantially decrease our disruption rate, and you will find that we are currently experiencing very few major disruptions.

Ticket prices in Bangladesh are considerably higher than those in neighbouring countries. Could you explain the reasons behind this price difference?

The difference in ticket prices is primarily determined by the quality of service offered. At Biman Bangladesh Airlines, we are committed to providing a full-service experience that sets us apart from budget carriers. Comparing our pricing with budget airlines wouldn't be an apples-to-apples comparison.

Our fleet consists of modern aircraft such as the Boeing 787 and the triple seven. Besides, we do not compromise on safety standards. Additionally, ticket prices are influenced by the dynamics of market demand and supply, as well as competition within the industry. Therefore, our pricing is set automatically based on these factors, without external intervention.

It is worth noting that the phenomenon of higher ticket prices is not unique to Bangladesh — it's a global trend. After the pandemic, there has been a significant increase in people's mobility, investments, business activities, and overall communication. As a result, ticket prices have risen. And in some cases, the price has shot up by approximately 44%.

We hope that ticket prices may become more tolerable in the future, especially if the cost of fuel decreases. This would offer some relief to travellers and make air travel more accessible.

There have been discussions about Biman Bangladesh Airlines investing in Airbus or Boeing aircraft, but a final decision hasn't been made yet. What can you tell us about the current status of this deal?

As a company, we are looking forward to the best option. So, we are diligently evaluating the offers and options available to us. Boeing has presented a proposal to us, which we are carefully considering. This evaluation process encompasses both technical advancements and financial aspects.

In alignment with our fleet plan and the addition of new destinations, we maintain regular discussions with our potential partners to determine the most profitable and beneficial path for the airline and, by extension, for the country. Selecting the right aircraft is a decision that carries significant weight and consideration.

While a final decision will require some time, we have received approval at the leadership level for the aircraft we intend to acquire. We remain committed to making a choice that serves the best interests of the airline and the nation as a whole.

How do you see the development of Biman Bangladesh in the next five years, including plans for business expansion and network growth?

We have a clear vision for the future. We have a 2030 plan in hand. This plan encompasses various aspects, including our fleet, network expansion, and the development of our human resources to align with our growth ambitions.

In line with this vision, we are actively exploring collaborations with partners, such as interline agreements and codesharing arrangements. These strategic partnerships serve as essential tools to expand our network and, in turn, enhance our profitability and reputation. Our primary objective is to broaden our service offerings and further establish Biman as a smart airline, in harmony with the vision of our Prime Minister.