Monday, April 29, 2024
Biman Bangladesh Airlines, the national flag carrier, has been deprived of Tk 1,365 crore in profits due to the devaluation of Taka against the US dollar in the fiscal year 2022-23.
As a result, the airlines showed profits of only Tk 28.65 crore in the last fiscal year, according to Biman.
People involved with the sector said that Biman has been facing allegations of irregularities and losses since its establishment. However, the airliner has been struggling to survive for several years. By increasing the number of flights and launching new routes, it has started making profits.
Biman Bangladesh Airlines Managing Director and CEO Shafiul Azim told The Business Post that due to the devaluation of Taka against the USD, they could not show a profit of around Tk 1,365 crore. “But we are still making profits.”
They have to pay more for jet fuel and landing tax in local currency, he said, adding that earlier, they had to pay Tk 80-85 against one dollar. Now the exchange rate of the US dollar increased to Tk 115-120, he said.
On the other hand, they have to pay pilot and cabin crew allowance as well as pay bills abroad, he said.
Shafiul Azim said that they have to pay more in foreign payments for operating flights abroad. “That's why I have to pay more when I go to buy dollars from the market. This has increased the cost of our domestic airlines.”
Business insiders say that currently, a total of 28 foreign and four domestic airlines operate an average of 140-145 flights from Bangladesh every day. Foreign airlines hold about 70 per cent share of Bangladesh's aviation market while domestic airlines only 30 per cent. Biman holds a large market share of 30 per cent.
In the fiscal year 2022-23, Biman earned Tk 1,775.48 crore only from passenger transportation and Tk 132.29 crore from ground handling.
However, the price of the dollar increased sharply and Biman made a profit of only Tk 28.65 crore.
In the fiscal year 2021-22, Biman's profit was Tk 328 crore, sources concerned said.
Biman was established on January 4, 1972, as the country’s national flag carrier. The journey began with a DC-3 aircraft, an Air Force plane gifted to the new airline by the government.
Biman was finally airborne on March 7, 1972, with flights to Chattogram and Sylhet and on March 9 to Jessore.
On March 4, three days before the start of domestic operation, the first flight of Biman's international operation landed in Dhaka from London with 179 passengers on board.
To fulfil passengers’ expectations of travelling around the world, Biman has 21 aircraft in its fleet, including six brand-new Boeing 787 Dreamliners and three Dash 8-400.
