Biman signs deal with Airbus for 10 aircraft

Package includes four A350-900 widebody and six A321neo narrowbody jets.

Although the price of the aircraft has not been officially disclosed, sources told The Business Standard that the Airbus package is expected to be worth around $2 billion.

The aircraft are expected to be delivered from 2033, although Bangladesh has requested Airbus to deliver some of the aircraft earlier than the scheduled timeline.

The signing marks the conclusion of months of evaluation and negotiations over Biman’s Airbus procurement, coming shortly after the national flag carrier expanded its Boeing acquisition programme to 25 aircraft.

The signing ceremony was attended by representatives of the government, Biman and Airbus, including Civil Aviation and Tourism Minister M Rashiduzzaman Millat, State Minister for Foreign Affairs Humayun Kabir and Invest Bangladesh Executive Chairman Ashik Chowdhury.

Ambassadors from the European Union, France, the UK, Spain and Germany also attended the event and spoke at the ceremony.

Biman Board Chairman Rumee A Hossain said the Airbus acquisition was part of the national flag carrier’s long-term vision to build a sustainable mixed fleet.

“The Airbus inclusion is part of our long-term vision to build a sustainable mixed fleet model,” he said.

“It is a major and reasonable ambition as Bangladesh handles over 15 million air passengers each year,” he added.

He said the widebody aircraft would serve routes to the Middle East, Europe, North America and Australia, while the narrowbody jets would focus on regional and medium-haul Asian hubs.

Biman Managing Director and CEO Kaizer Sohel Ahmed delivered the welcome speech at the ceremony.

Biman and Airbus reached consensus on several outstanding issues following months of negotiations, leaving no major unsettled matters between the two sides.

Civil Aviation and Tourism Minister M Rashiduzzaman Millat had earlier confirmed that Bangladesh would acquire 10 Airbus aircraft and said an agreement was expected to be signed in October.

The discussions over the purchase of the 10 Airbus aircraft date back to the previous government. After a meeting with then-prime minister Sheikh Hasina in Dhaka in September 2023, French President Emmanuel Macron publicly thanked Bangladesh for its commitment to acquiring 10 aircraft from Airbus.

Since then, Airbus has intensified its diplomatic and commercial engagement, while European ambassadors have repeatedly raised the issue during EU-Bangladesh bilateral discussions.

Biman’s 35-aircraft expansion plan

The Airbus deal, together with two Boeing agreements, will take Biman’s planned new-aircraft pipeline to 35 aircraft, comprising 19 widebody and 16 narrowbody jets.

Biman’s latest Boeing agreement was signed in New York on 23 September under a “Right to Purchase Additional Aircraft” provision included in the 14-aircraft purchase agreement signed on 30 April.

The supplementary agreement covers five Boeing 787-10 Dreamliner widebody aircraft and six Boeing 737-8 MAX narrowbody aircraft. The 11 aircraft will cost about $2.7 billion, with the price based on the same rate agreed under the April contract, the minister said.

The 30 April agreement covered the purchase of 14 Boeing aircraft worth $3.7 billion.

Together, the two Boeing agreements cover 25 aircraft, comprising 15 widebody jets, including two 787-9s and 13 787-10s, and 10 737-8 MAX narrowbody aircraft.

Under the contracts, the first Boeing aircraft is scheduled for delivery in November 2031 and the final aircraft by 2035.

However, Biman has requested Boeing to deliver at least one aircraft earlier, possibly in 2027 or 2028, the minister said.

The national carrier currently operates 19 aircraft, mostly Boeing models. With the Airbus acquisition, Biman is now moving towards a more diversified fleet structure combining Boeing and Airbus aircraft.