Plane Purchase: ‘Airbus’s second proposal far better than the first’

Biman's outgoing Managing Director and CEO Shafiul Azim said the Airbus's second proposal to sell its aircraft to the national flag carrier was far better than the first one.

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Biman U-turns to buy Airbus planes

In an interview with The Daily Star in his office on Tuesday, he said, "That's why the technical and financial evaluation committee had given the go-ahead to the second proposal to purchase aircraft from the European plane manufacturer.

"In the first of the two proposals, Airbus proposed selling two freighters along with a passenger aircraft," he said, adding, "We don't think we need cargo planes now as it wouldn't be economically viable.

"In the second one, it proposed selling four passenger aircraft. This was far better than the first."

About reconstituting the evaluation committee after it had said buying Airbus aircraft would not be profitable, he said, "There was no change made in the committee. The previous chair went into retirement. So, the next most senior person was made the new chair."

Azim said, "Boeing also sent us a proposal and we'll evaluate that too. We have a long-standing good relationship with Boeing.

"It is our very trusted and reliable partner. Our relationship is not only based of buying or selling planes, the company's technical support and credit facilities are also good. Overall, we work well together."

He further said, "However, whichever aircraft we buy, we're in a preferable position as a buyer with competitive offers from both companies."

Azim claimed the technical and financial evaluation committee worked very transparently and that even the slightest compromise was not made to ensure Biman's interests.

"The highest authority of the country instructed us to choose the proposal that will be better for Biman, and we followed that instruction ... The committee didn't face any pressure or interference while doing its work."

He further said the committee green-signaled the second proposal, which was later sent to the Biman board. The board then sent it to the negotiation committee with instructions to proceed.

"We're now prioritising the Airbus offer. All major aircraft in our fleet are from Boeing, so passengers will like something different.

"Any company can face bad times at any time. We're negotiating with Airbus as part of a long-term plan to ensure we're not in any kind of danger, that our strength doesn't wane in the future, and that we're not exposed to any risk."

About "risks", he spoke about some recent incidents involving the Boeing-737 max aircraft.

"If we can make an excellent combination of Boeing and Airbus, Biman will reach a new height in Asia.

"Now that we're growing the fleet and if there is no diversity, we're just single-sourced. Then there's no option for passengers to choose. They often have a choice as to which company's aircraft they will fly."

Azim said the decision to buy Airbus aircraft has already been made and the proposals are being reviewed. "The aircraft will be bought following proper procedures."

Meanwhile, at a views-exchange meeting with the Aviation and Tourism Journalists Forum of Bangladesh at Biman's headquarters in the capital's Kurmitola yesterday, Azim said Biman has been a profitable venture for the last eight to 10 years.

"We had two years of losses, one due to the Covid-19 pandemic and the other due to huge repayments."

About a syndicate selling Biman tickets, he said, "If anyone can prove this, the responsible officials and staffers of Biman will face proper punishment."