The New Nation - Internet Edition

Staff Reporter

Biman Bangladesh Airlines Limited signed a $1265.145 million deal yesterday with Boeing on the purchase of eight aircraft as part of its massive expansion.

Biman MD and CEO MA Momen and Boeing regional director Glen A Green signed the agreement and memorandum of understanding (MoU) for their respective sides.

Special Assistant to the Chief Adviser Mahbub Jamil and newly appointed US Ambassador James F Moriarty were present among others at the signing ceremony at Bangladesh Airlines Training Centre (BATC) Auditorium in the city. A memorandum of understanding was signed with the company for a long-term lease of two Boeing 787s, as it will take time for the eight aircraft to join the Biman fleet, Mahbub Jamil, Special Assistant to the Chief Adviser in Charge of Civil Aviation, said.

"The Boeing has also provided engineering facilities, training facilities, airline marketing development to Biman under the MoU," Jamil said, adding, "We have benefited $70 million in this regard."

He hoped that Biman would be able to rise to the breakeven point within this fiscal if it could manage to get lease of two 737s.

"We need to make Biman, a competitive airlines in the world. The deal is part of this to take the country forward," he further said.

Besides, the Biman also signed a separate memorandum with the Boeing to buy two 737-800 aircraft yesterday. MA Momen, Managing Director and Chief Executive Officer of Biman Bangladesh Airlines Limited and regional chief of Boeing Glen A Green signed the MoU on behalf of their organisations.

James Moriarty said, "I am proud to witness the expansion of business of Boeing in Bangladesh."

"By addressing the need, the Biman Bangladesh Airlines Limited and the Boeing would work together in future," he hoped.

Biman will finance 85 per cent of the total cost of the aircraft with loans from the US-based EXIM Bank to be repaid over 12 years period. The rest 15 per cent will be obtained from a consortium of local banks.

Mahbub Jamil said that we have also sought assistance from other international financial agencies to reduce the dependency on only US EXIM bank in this regard.

Four Boeing-777-300 ER airliners will be added to the Biman Bangladesh fleet in July, August, October and December of 2013 at the cost of $731.890 million with the passengers handling capacity of 463 each.

The remaining four of 787-8 planes at the cost of $533.255 million will be added in July, August, October and November of 2019-20. The 787-8 passengers handling capacity will 292 each.

Besides, the Biman has also signed a memorandum of understanding with Boeing authority to procure two737-800 aircraft yesterday, which would be added to Biman fleet in 2015.

The present Biman fleet has four DC-10s, three Airbus aircraft, a Boeing-747 and three F-28s for operating its domestic and international flights. Of them, two F-28 aircraft are grounded.