Biman Bangladesh Airlines, the national flag carrier of Bangladesh, has evaluated offers from both Airbus and Boeing for the expansion of its fleet. The evaluation found that the offer from Airbus to sell two A350-900 passenger aircraft is not financially viable for Biman due to negative net cash flow for the next 25 years compared to the cost of capital investment [96ba60b1]. The total investment for the two aircraft would exceed $1 billion, with Biman having to pay a total of $900 million by June 2027, which is 18.6% higher than the base price offered by Airbus [96ba60b1]. The evaluation committee of Biman recommends not purchasing the aircraft due to poor yield and negative cash flow. The committee suggests that an alternate source of funding and changes to routes, frequency, and fleet size may make the project viable [96ba60b1]. Biman also has an offer from Boeing that has yet to be evaluated [96ba60b1].
The evaluation report highlights several challenges in crew management, engineering training, logistics, pre-flight inspections, and provisioning spares and tools. Biman currently operates 21 aircraft, with 16 made by Boeing and five made by De Havilland. According to Biman's 'Network and Fleet Plan,' the airline indicates a need for 47 aircraft by FY35. The report also mentions that Biman will require a 400+ seat capacity aircraft by FY29 and two 300+ seat capacity wide-body aircraft by FY26. The report highlights challenges in crew shortage, maintenance, and engineering personnel retirement [96ba60b1].
Airbus has offered 1,000 trainee-days support for engineers, but the report suggests that 2,000 trainee-days are needed. Additionally, the Engine Maintenance Program is exclusively offered by Rolls Royce [96ba60b1]. Biman Bangladesh Airlines will carefully consider the evaluation report and alternatives before finalizing its decision on fleet expansion [96ba60b1].
In related news, Boeing has lost a crucial contract to Airbus in the bidding for a new fleet of passenger planes. The contract, worth $10 billion, was awarded by a consortium of airlines and is a major blow to Boeing, as it was seen as a key opportunity to regain market share after the grounding of its 737 Max planes [b3be905b]. The decision to award the contract to Airbus was based on several factors, including price, performance, and environmental impact. The new fleet of planes will be used by the consortium of airlines for long-haul flights. Boeing has expressed disappointment with the decision and plans to review its options [b3be905b].