Biman Bangladesh Airlines outgoing Managing Director (MD) and Chief Executive Officer (CEO) Shafiul Azim has indicated the purchase of passenger aircraft from Airbus, one of the largest aircraft manufacturers in the world.
Shafiul made the announcement during a view exchange meeting with the Aviation and Tourism Journalists' Forum of Bangladesh (ATJFB) on Wednesday.
He said, “Initially, Airbus offered us two cargo planes, but we decided that we do not need them now. Instead, we expressed our interest in expanding our passenger fleet. Subsequently, Airbus proposed a four-passenger aircraft.”
This proposal was better than the previous proposal. That proposal goes from the evaluation committee to the airline's board. The board has sent to the negotiation committee with instructions to proceed in this regard, he added.
He emphasised the importance of diversifying their fleet, noting that 16 out of 21 large aircraft in Biman’s fleet are currently from Boeing. “We are considering Airbus’s offers seriously. Diversifying our aircraft will mitigate risk and appeal to passengers who appreciate newer models,” Shafiul said.
“At some point, any company's aircraft may perform poorly, so we are thinking of diversifying so as not to take the risk. Passengers will also like having some diversity with new aircraft,” he added.
Regarding Boeing, Shafiul mentioned that they also received an offer from Boeing, which will be evaluated. “We have a longstanding relationship with Boeing, not just regarding aircraft procurement but also their technical support and credit facilities. We are working well together,” he said.
“However, whichever aircraft we buy, we are in an advantageous position as a buyer with competitive offers from both companies,” he added.
When asked, is Biman actually in profit or loss? Shafiul said that Biman had been profitable for eight out of the last ten years.” Out of the two years of losses, one year was due to the coronavirus outbreak and another due to significant payment obligations. “Despite challenges such as dollar shortages and ongoing global conflicts, we have remained profitable,” Shafiul said.
He further defended Biman’s financial health, pointing out that regular audits have confirmed their profitability. “We continue to hire and pay salaries and bonuses, including profit bonuses. If Biman was not profitable, where would this money come from? To those who doubt our success, I pray they find guidance,” he remarked.
Reflecting on his tenure, Shafiul expressed satisfaction with his management approach. “During my time, I never hesitated to reward deserving employees or to impose necessary disciplinary actions. I have used my authority to the fullest and believe that with effort, Biman can compete with the world’s leading airlines,” he stated.
Addressing the frequent changes in Biman’s leadership, Shafiul underscored the need for a stable management system. “Our human and technical resources are competent. If systems and structures are in place, the organisation will not rely on any single individual. I have focused on establishing these systems,” he noted.
He said, “I would recommend that those who are working in various technical departments should not consider age. Because, as the age increases in the technical field, the experience also increases. Veterans should be retained in the Biman based on experience, not considering age.”
“Biman should not function with the mindset of a government office; it is a commercial entity and should be managed commercially,” he added.
When asked if he has any regrets, he said, “I would have been very happy if four aircraft were added to the fleet during my tenure.”
On May 26, the Ministry of Public Administration announced Md Jahidul Islam Bhuiyan as the new Managing Director and CEO of Biman Bangladesh Airlines. In a separate announcement, Shafiul Azim was promoted to the secretary of the Election Commission.
