Bangladesh Biman

Topics: Biman Bangladesh Airlines, McDonnell Douglas DC-10, Airbus A310 Pages: 31 (9630 words) Published: August 25, 2013
Introduction
Biman Bangladesh Airlines created in February 1972 using vintage aircraft, Biman enjoyed an internal monopoly in Bangladesh aviation industry until 1996. In the decades following its founding , the airline expended both its fleet and its horizon (at its peak Biman operated flights to 29 international destinations as far away as New York. John F. Kennedy International Airport ( New York City) in the west and Tokyo. Narita in east, but suffered heavily owing to mass corruption and frequent mishaps. The major reason behind airline’s huge financial loss and bad reputation for poor service and regular flight cancellation / delays its ageing fleet, with some of its long-haul aircraft banned for safety reasons by the aviation authority of the US and EU countries. Annual haaji flights, transporting non-resident Bangladeshi workers/ migrants as well as Biman’s subsidiaries, from an important part of carrier’s business. The rising oil price has created additional pressure on the airline, which is widely reported to have failed to meet its payment obligation to state-owned petroleum corporation,BPC. Biman has a two star ranking out of five by skytrax, a United Kingdom- based consultancy. Currently the carrier is facing stiff competition from a number of local private airlines as well as some international carriers, which offer greater reliability and service standards, targeting the country’s air transport sector which is experiencing 8% growth per annum owing to a large number of non-resident Bangladeshis. After becoming a public limited company, Biman has trimmed the number of staff and turned its attention to modernizing the fleet. Biman struck a deal with US aircraft manufacturer Boeing for procurement of 10 new generation aircraft along with options/purchase rights for another 10. The carrier is also in the process of leasing some aircraft for the interim period to restart flights to some of the destinations in Asia, Europe and North America.

Strengths of Biman Bangladesh:

Strengths of Biman
New generation aircraft.
Effective fleet and route expansion
Re- branding.
Hajj operation
E-ticketing implementation
Turn profitable.
Qualified management personnels
Boeings expertise in all the fields of aviation
Biman's Brand Pillar
Scheme of Frequent Flyer Programme
Biman Cargo
Others

New generation aircraft:
With the event Biman started it's journey with new generation aircraft. Biman is acquiring these aircraft on lease to improve quality of its services for the interim period up to the delivery of aircraft from Boeing, which are scheduled to be delivered from 2011. Earlier, the 777-200ER leased from EuroAtlantic Airways arrived in Dhaka on January 23, 2010 at 5:04 pm and the 737-800 leased from GECAS on January 25, 2010 at 11:16am. The second 737-800 from GECAS is also expected to reach Dhaka today on February 03, 2010. Biman is also leasing one 310-300 aircraft from ILFC which is scheduled to be delivered to Biman on 07 February 2010. It is expected that a second 777-200ER from EuroAtlantic will join the fleet by end March 2010.It may be mentioned here that the leased 777-200ER has a configuration of 293 Economy and 30 Business Class seats. The 737-800, which presently has a configuration of 177 Economy seats will be converted to 150 Economy and 12 Business Class soon.

Effective fleet and route expansion:
With the induction of new aircraft in the fleet Biman expects to resume operation on some of the suspended routes and to operate to some new destinations. Flights to Delhi and Bangkok will resume from 15 February 2010. Operation of flights to Tripoli, Guangzhou and Colombo is planned to commence from Summer Schedule 2010. The much-anticipated flight to New York will commence soon after induction of the second 777-200ER and completion of other required formalities. Possibility of...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Pestle Analysis Biman Bangladesh Airlines.Doc Essay
  • Performance Analysis of Biman Bangladesh Airlines Ltd. Essay
  • Essay about Performance Analysis of Biman Bangladesh Airlines Limited
  • Bangladesh Parjatan Corporation Essay
  • The Relationship of Corruption and Job Satisfaction, Organizational Commitment and Inefficiency of Employees in Context of Biman Bangladesh...
  • Overview of Bangladesh Aviation Industry Essay
  • Operation Management of a Garments Factory of Bangladesh Essay
  • 7p's of Tourism Marketing in Bangladesh Essay

Become a StudyMode Member

Sign Up - It's Free