Biman Bangladesh Airlines signed a major aircraft purchase agreement with US manufacturer Boeing on Thursday evening, raising fresh questions over whether the procurement will strengthen the national carrier or deepen its long-standing financial struggles.
Under the deal, which marks the largest fleet expansion in the country’s history, Biman will procure 14 aircraft, including eight Boeing 787-10s, two Boeing 787-9s and four Boeing 737-8 MAX jets, spending around $3.7 billion.
Aviation experts say whether it becomes the airline’s long-awaited turnaround or another costly burden will depend less on the purchase itself and more on how the national carrier is operated.
The deal is part of the US-Bangladesh reciprocal trade agreement, signed abruptly only three days before the February 2026 parliamentary election. Section 6(1) of the controversial agreement mentions the Boeing purchase.
The interim government, led by Prof Muhammad Yunus, signed the agreement to avoid reciprocal tariffs introduced by the Trump administration, but it drew widespread criticism for compromising Bangladesh’s national interests.
Biman Managing Director and CEO Kaizer Sohel Ahmed and Boeing Vice President Paul Righi signed the deal at a hotel in Dhaka in the presence of State Minister for Civil Aviation and Tourism M Rashiduzzaman Millat, Biman officials and Boeing representatives.
The Dreamliners are expected to strengthen long-haul international operations, while the 737 MAX aircraft will be used for regional routes. The purchased aircraft will be delivered between 2031 and 2035, with the first aircraft expected to arrive in five years.
As per the deal, the government will provide a sovereign guarantee to support financing.
Wing Commander Retd ATM Nazrul Islam said Biman undoubtedly needs more aircraft, but acquiring 14 at once could become a major financial burden if Biman fails to use them efficiently.
“Biman should have purchased them in phases, as payment obligations would begin immediately while Biman lacks the financial strength to absorb such a high cost at once,” he told TIMES of Bangladesh.
He raised concerns that although Biman reported a profit last year, the main question was where the money for these payments would come from.
In FY24, Biman claimed it earned a record Tk 11,559 crore in revenue, which is 9.46 per cent higher than the previous fiscal year.
During the same period, the airline reported an operating profit of Tk 1,602 crore and a net profit of Tk 785.21 crore, which is 178 per cent higher compared to the previous fiscal year.
Nazrul questioned the airline’s reported profitability, saying the full financial picture was not reflected because major liabilities were not accounted for in the same way.
“If liabilities such as dues to Civil Aviation Authority of Bangladesh and Bangladesh Petroleum Corporation were fully accounted for, it would be difficult to show that kind of profit,” he said, adding Biman has never fully developed into a competitive business unit despite strong state backing and significant assets.
He said the biggest issue remains fleet balance and route planning to make the airline profitable, but it has been a challenge for the national carrier.
Aviation experts say Biman’s fleet mix is not right and route planning is also weak.
According to them, Biman now has too many wide-body aircraft, but without enough feeder operations, those large aircraft cannot be used efficiently.
Successful airlines connect smaller regional routes with larger international operations through a balanced fleet structure, something Biman must achieve if it wants to become sustainably profitable.
On the Boeing purchase, aviation expert Kazi Wahidul Alam said Biman must add new aircraft to stay competitive, as its current fleet is too small to properly run its network, while older aircraft will need to be phased out within the next two to five years.
The current Biman fleet comprises 19 aircraft, 14 of which are Boeing jets, operating flights to 30 destinations across 14 countries.
According to experts, Biman’s long struggle to become consistently profitable stems largely from weak governance and constant leadership changes.
Biman has seen frequent leadership changes, with more than 40 CEOs and managing directors since its inception in 1972, which has been a major barrier to long-term profitability.
Key positions are often filled without the required expertise, and the airline still operates with a bureaucratic mindset rather than the commercial discipline needed to compete with major international carriers.
“We still prefer to think of Biman as a government institution rather than a business, and that is one of the reasons it has failed to move forward,” Alam added.
He cautioned that buying aircraft without ensuring proper utilisation would only increase liabilities instead of generating profit. If the planes remain idle, there would be no benefit. He added that management, along with the Biman board, must work together to make the airline profitable.
“It needs skilled manpower, efficient management, and must be run as a commercial airline rather than as a typical government institution. Aircraft alone will not solve Biman’s deeper structural problems,” he said.
