Bangladesh to Commit $2.5 Billion to 11 Boeing Aircraft

Biman Bangladesh Airlines is expected to spend around $2.5 billion on a new deal to purchase 11 Boeing aircraft, a senior official involved in the procurement process told Aviation Express. However, neither Biman nor the government has officially disclosed the financial value of the deal.

A supplementary agreement to purchase five Boeing 787-10 Dreamliners and six 737-8 aircraft was signed last week on the sidelines of the 81st session of the United Nations General Assembly in New York.

Speaking on condition of anonymity due to the sensitivity of the matter, the senior official said Biman’s techno-finance committee had conducted only a limited assessment of the proposal before it was finalised.

“I can say only this much: we did not conduct any comprehensive evaluation of the deal to purchase additional Boeing aircraft,” the official said.

Meanwhile, if everything goes as planned, the newly constructed third terminal of Hazrat Shahjalal International Airport in Dhaka is scheduled to be inaugurated on December 16.

The opening of the new terminal, along with the Boeing and Airbus procurement initiatives, has brought positive prospects for the country. Several companies have already expressed interest in investing in Bangladesh.

Stakeholders believe these developments could have a positive impact on the country’s economy and foreign investment. The third terminal, combined with agreements with Boeing and Airbus, could significantly transform Bangladesh’s aviation sector.

The country’s annual passenger-handling capacity is expected to rise from the current 8 million to around 20 million. The terminal will also feature improved immigration facilities, faster baggage handling within 15 to 40 minutes, and other international-standard services.

At the same time, expanded cargo-handling facilities will create greater opportunities for export and import trade, helping accelerate growth in the ready-made garment sector and other industries.

Experts say these developments will enhance Bangladesh’s image internationally, encourage foreign investment and help the country emerge as a regional aviation hub.

According to sources, Biman and the government have yet to disclose the negotiated price of each aircraft, financing arrangements, payment terms or delivery schedule under the new procurement deal.

Boeing currently does not publish list prices for its aircraft. According to its last publicly available list prices from 2019, the combined historical list price of five 787-10s and six 737 MAX 8s was around $2.42 billion.

However, list prices generally do not represent the actual purchase prices of aircraft. In major commercial aircraft deals, prices and other commercial benefits are determined through negotiations between manufacturers and airlines, often involving discounts.

Against this backdrop, the potential $2.5 billion value of the new deal has raised questions about the final negotiated terms and the discounts or other commercial benefits Biman may have received from Boeing.

Earlier, on April 30, Biman signed an agreement to purchase 14 Boeing aircraft: eight 787-10s, two 787-9s and four 737-8s. Based on list prices, the estimated value of that deal was around $3.7 billion.

With the two agreements combined, Biman’s new Boeing orders this year have reached 25 aircraft: 13 787-10s, two 787-9s and 10 737-8s.

Meanwhile, a separate proposal to purchase 10 Airbus aircraft remains under discussion. As part of its long-term fleet expansion plan, Biman is considering acquiring four Airbus A350-900 widebody aircraft and six A321neo narrowbody aircraft.

If the Airbus proposal is eventually implemented, a total of 35 new aircraft will be added to Biman’s procurement pipeline, nearly double its current fleet of 19 aircraft.

Stakeholders believe the expansion could have a positive impact on Bangladesh’s economy and foreign investment. Several companies have already expressed interest in taking advantage of emerging investment opportunities.

Financial sector analyst Professor Abu Ahmed told Inqilab that the inauguration of the third terminal on December 16 and the addition of new Boeing aircraft to Biman’s fleet would provide significant momentum to Bangladesh’s aviation sector and the broader economy.

He said the launch of the terminal would bring major changes to Bangladesh’s business and trade, government revenue, employment and tourism sectors.

At the same time, he said, the developments would inject new momentum and vitality into the country’s economy, which has remained sluggish for a long time.