Biman Bangladesh airlines:

COMPANY OVERVIEW:
Biman Bangladesh Airlines operates as a national flag carrier of the People's Republic of Bangladesh. It carries the nation's flag to various South Asian destinations, South-East and Far-Eastern destinations, destinations to Gulf and Middle-East region, and European and North American points. The company has sales agents in Abu Dhabi, Dubai, Sharjah, and Ajman, the United Arab Emirates; Athens, Greece; and Manama, Bahrain. Biman Bangladesh Airlines was founded in 1972 and is based in Dhaka, Bangladesh. It has additional offices in Barisal and Chittagong, Bangladesh; New York; Los Angeles, California; London and Manchester, the United Kingdom; Abu Dhabi, the United Arab Emirates; Manama, Bahrain; Kolkata and Delhi, India; Bangkok; and Hong Kong.

KEY DEVELOPMENTS FOR BIMAN BANGLADESH AIRLINES
Biman Bangladesh Airlines to Launch Services from Manchester Airport
10/14/2011
Manchester Airport announced that Biman Bangladesh Airlines will begin services from Dhaka to Manchester this winter. Tickets for the twice-weekly service are on sale now and the inaugural flight is scheduled for 2 November 2011. The route will be the airport's longest direct flight. Services are scheduled to operate on Wednesdays and Saturdays with a newly purchased B777-300ER with a two class configuration.
J.P. Morgan Provides USD 277 Million Financing Facility to Biman Bangladesh Airlines Limited
08/9/2011
J.P. Morgan announced that it has provided a USD 277 million financing facility to Biman Bangladesh Airlines Limited to support the airline's long-term, strategic expansion plan. Through the facility, Biman, which is 100% owned by the Government of Bangladesh, will purchase two new Boeing aircraft to service an expanding domestic and international network of routes. This is the first aircraft delivery arising from Biman's 2008 order placed with Boeing for 10 aircraft over the next decade. Guaranteed by the Export-Import Bank of the United States, the 12-year loan facility will be repaid quarterly. J.P. Morgan has almost 50 years' experience in handling U.S. Ex-Im Bank guaranteed transactions, and is one of the world's largest providers of aircraft financing through U.S. Ex-Im Bank.
Bangladesh Extends Deadline For Stake Sale In State-Owned Enterprises
02/11/2011
The Ministry of Finance Of Bangladesh has extended the deadline for stake sale, of up to 49% of the equity capital, for about 24 state-owned enterprises (SoEs) on the stock market. Three SoEs have been dropped from the list for the purpose of divestment. The period for stake sale in SoEs in the revised list will continue until December 2011. The chief executive of SoEs who will fail to meet the new deadline, will have to resign from their positions. Finance Minister Muhith said: "We have set another deadline to offload the shares of SoEs. No further extension will be given to implement the decision of the government, meant for overcoming the supply-side constraints relating to availability of good shares in the capital market. The top bosses have to resign in case they fail to avail themselves of this last opportunity." Bangladesh Blade Factory Ltd, General Electric Manufacturing Company Ltd. and Bangladesh Bridge Authority (Bangabandhu Bridge) have been dropped for the divestment list. He said: "Presently, these three companies are not in a situation to offload their shares." Meghna Petroleum Ltd. and Jamuna Oil Company Ltd. will divest more of their shares to the market by February 22, 2011, while Titas Gas Transmission and Dist Co. Ltd, Bangladesh Shipping Corporation, and Dhaka Electric Supply Company Ltd. will have until March 31, 2011 for divestment. A sizeable amount of shares of LP Gas Ltd. will also be divested by March 31, 2011. Muhith said that Bangladesh Cable Industries Ltd, Telephone Shilpa Sangstha Ltd, Pragati Industries ltd, Chittagong Dry Dock Ltd, Biman Bangladesh Airlines and Essential Drugs Company Ltd will be listed on the stock exchange latest by June 30, 2011. Bakhrabad Gas Systems Limited will be listed by July 31, 2011. Muhith said the shares of Teletalk Bangladesh Ltd. and Bangladesh Telegraph & Telephone Board will be divested by September 30, 2011 while Karnaphuli Paper Mills Ltd. will be sold by December 31, 2011. The finance minister said that offloading of an additional portion of equity capital of Power Grid Company of Bangladesh Ltd., Jalalabad Gas Transmission and Distribution System Limited, South Zone Gas Company Ltd., Bangladesh Services Limited (Hotel Sheraton) and Hotel International Limited (Sonargaon Hotel) will be considered later, because the companies are facing some problems concerning valuation of their assets. Soon a committee will be formed to outline the methodology for their asset valuation, which is required to be completed before offloading shares of any company, be it public or private. Muhith said the shares of Sylhet Gas Field Company Ltd., will not be offloaded, instead its bond will be floated in the market. The government is planning to divest shares of proposed Padma Bridge and the Bangabandhu Bridge in a package, the minister added. The finance minister said that LP Gas Ltd, Titas Gas, Dhaka Electric Supply Company Limited and Bangladesh Shipping Corporation will offload shares by March 31, 2011, Bakhrabad Gad Transmission and Distribution Company Ltd will do so by July 31, Telephone Shilpa Sangstha Ltd and Submarine Cables Company Ltd., by April 30, and CNG Company Ltd., by May 11. Regarding Power Grid Company, he said that a committee will be formed headed by the SEC chairman to evaluate its assets within one month before offloading its shares. Rural Power Company Ltd, GEM Company Ltd, Bangladesh Blade Factory Ltd, the sugar mills under the ministry of industries, Usmania Glass Sheet Factory Ltd, Atlas Bangladesh Ltd and Eastern Cables Ltd have been dropped from the list for stake sale. The meeting also set a December 31 deadline for the Karnaphuli Paper Mills Ltd., Bangladesh Insulator and Sanitary Ware Factory Ltd., and Chhatak Cement Factory Ltd., for stake sale. Stakes in Sheraton Hotel and Hotel Sonargaon will be offloaded partially by this June, after completion of valuation of their assets. Initially, Bangladesh Biman would offload 10% of its shares, and more shares will be offloaded later, Muhith said. He stated that all the companies would enter the market following the book-building method. In September, Prime Minister Sheikh Hasina approved a proposal on offloading shares of concerned SoEs.
Strategic issues of BBA:
, Biman Bangladesh Airlines is going to be 40 years old_ fairly long time for consolidation and expansion of operation. Unfortunately, however, for various reasons, originating mainly from wrong policies pursued over the years, this has not happened. In fact, the operation has shrinked and are still in disarray.
However, after long wait, the carrier is now awaiting delivery of two ultra-modern new aircraft-B777-200ERs-- prior to its birth anniversary-on this month (October) and another next month (November). The two aircraft are part of the 10 new generation Boeing aircraft on order.
The start of the delivery of the aircraft on order to modernise the fleet should certainly be good news. But overall situation prevailing in Biman does not look promising that these aircraft can be used efficiently and profitably. Non-professional management and unreliable fleet have been very much 'inseparable part' of Biman since its birth. Now, not so efficient workforce has become part of the airline, in recent years. Under such a situation, the future also does not look bright.
The promise & its death
Not very long ago, Biman Bangladesh Airlines Limited_ the national flag carrier of Bangladesh_ envisaged a bright new era with new fleet, new brand image and identity and new management. But the bright prospect of the new era has dimmed considerably, due to withdrawal of earlier efforts to provide-- new identity, induct professional management and infuse skilled manpower-- to make Biman a modern and efficient airline. The promise of a new era not in sight any more-at least under existing situation.
After turning Biman into Public Limited Company (PLC), during the rule of immediate past Caretaker Government, the re-constituted Board of Directors of Biman Bangladesh Airlines Limited initiated measures to take the national flag carrier to a new era with adequate modern fleet, new look and professional management.
The Board finalised modernisation of Biman fleet. 10 aircraft_ four dreamliner B787s, four B777-200ERs and two B737s with option for equal number of aircraft, were ordered.
The Board also started 'Road Show' to attract foreign assistance to re-structure the carrier and to recast management, to run the airline professionally, efficiently and commercially.
All these steps were to take Biman into a new era with new generation fleet, new corporate identity including a totally redesigned aircraft livery and company logo, to revitalises the brand image better as well as to reflect Biman's future direction.
One of the major targets in this regard was to install efficient professional management for the national flag carrier.
All these efforts are time consuming measures. There is no short cut. As a result, except order for new fleet, all the other much needed initiatives taken during the rule of Caretaker Government to make Biman a well equipped, well managed efficient and profitable airline, could not came to fruition.
Re-branding
The re-branding is considered an important requirement and a starting point for the organisation to become focused and enjoy a stronger position in the world air transportation market. Along with aircraft with new livery, offices, equipment, publications, uniforms and other aspects of the airline also undergo an identity change.
All these are designed to support the airline's future direction, enhance its position among world carriers, assist in providing distinctive customer services and enhance employee loyalty. This in turn will increase productivity and revenue, reduce costs, achieve profits and pave the way to privatisation.
Overall, the plan was to make Biman a model of Bangladesh's progress, development and prosperity. It must convey, through its general appearance, its mission of being a world class carrier with a distinctive Bengali character, that is customer-driven and a caring employer.
The new logo and corporate identity were designed to represent a new beginning for Biman and equip it with new generation fleet meant to improve the performance and enhance its image among members of the public, customers and regional and international carriers. It was also to enable the airline to cope with continuous developments in the airline industry and deal with intense competition and meet customer requirements.
Change or development now-a-days does not deal with appearance while ignoring the core issues. It is, by any measure, a productive investment. The new logo and livery displayed on every aircraft in the new fleet, was considered in itself an important, essential and strategic opportunity-- a golden opportunity that may not happen again.
Great set-back
Identity renewal had been a well-known approach in the past, but it was now a strategic objective and an important operational and marketing requirement necessitated by conditions in the industry and by the challenge of the future.
There is no way to under-rate the value of new look. The new livery should have been symbolic to the airline's "new start" and convey its readiness for the 21st century. Re-branding all aspect of the airline was planned to provide new image.
This was to mark the opening of a new chapter in the airline's history, as well as to prepare for the increased competition in the market and for the airline's planned commercial development, as Biman must be revealed as rejuvenated, dressed in its most beautiful new livery and presenting its brightest face, introducing the beginning of a new chapter in its history.
Biman Bangladesh Airlines Limited got new look in 2010 through new logo and livery, as part of branding. But for unknown reason, these were killed soon after it was unveiled.
To the joy and delight of all concerned, Biman Bangla-desh Airlines Limited took the first step towards a 'New Era' with the unveiling of new logo and livery-the essential new corporate identity on February 3, 2010. But the joy was short lived, as the progress hit a stumbling block and decision concerning new logo and livery was over turned in April. A sudden unexpected and unexplained decision of the government is the cause and the old logo and livery was reinstated.
No professional management
To have a fully productive new start for the airline, there is no alternative but to make sure that all involved must be well equipped to rise to higher standards so that the airline can keep pace with the rapid, progressive changes in the industry. Professional management is key in this regard and is vital for Biman.
Management and fleet are the two vital areas of any airline and efficiency of both greatly contributes to success. But unfortunately, these two areas are the weakest in Biman. Improvement of both these areas was long overdue. Poor management and inadequate unreliable fleet resulted in inefficiency and negative image and the airline failed.
The industry is now moving into a new era of massive change in every field embracing accelerated technological developments, a series of marketing innovations and the globalisation of company management and ownership. These changes bring with them concomitant shifts in terms of new strategic alliances as well as immense communication networks and comprehensive automation.
The airline industry will clearly be characterised by dynamic change and rapid response to customers' ever-changing needs, by means of scientific, in-depth studies, clear thinking and comprehensive analytical outlook.
There is hardly any doubt that survival and success of airline business depends on a number of key factors. Perhaps, the most important is fitness to do business being correctly equipped in terms of management skills, training, marketing strategy, tactics and financial health.
No re-structuring
There is urgent need for Biman to tailor and implement comprehensive programmes for the development of services and enhancement of standards both on the ground and in the air, including reservations, check-in procedures, catering and entertainment programmes, among others.
Plans and programmes must also be created for the receipt and operation of the new fleet of state-of-the-art aircraft and all the necessary manpower and technical and support facilities had also been provided.
It was strongly felt that Biman must have services, structure, management methods, service standards and everything that enhances the airline's position and reputation to enable it to compete on equal terms with others, provide distinctive service and achieve success and excellence.
So, re-structuring and induction of professional management became very essential to accomplish these jobs. But, unfortunately, the efforts that were made to find experienced international operator to assist in getting professional management as well as re-structuring Biman to make it more dynamic, more flexible with rapid response to market demands and customers' needs, stopped after change of government. There is no sign of revival of the effort.
Poor manpower
In service industries like airline, people are the greatest asset. Biman Bangladesh Airlines is suffering from shortage of properly skilled efficient manpower and heading towards serious management crisis if immediate step to infuse new blood is not taken. According to a senior executive of the airline, the management level manpower situation is really bad.
In the absence of direct officer level recruitment, the middle management positions-Assistant Manager, Manager and Deputy General Manager_ are presently manned mostly by "unionised promotees". As a result quality of supervision has nosedived. Close connection of these promotees with the unions is also hampering proper functioning of the organisation.
It may be noted that because of the opposition of the unions, in nearly 40 years history of Biman only about 40 officers in four batches could be recruited. The present vacuum in management is because of that.
Since its birth in January, 1972, barring insignificant exceptions, Biman has failed to recruit proper manpower mainly because of disagreement between the management and unions. In early 1980s, the management and unions concluded an agreement on the question of fresh recruitment. The two sides agreed that 35 per cent of the vacancies would be filled by direct recruitment and the rest by promotion from lower level. Unfortunately, the management of Biman has not been able to make the recruitment as agreed, mainly due to opposition from various unions.
This failure has created a serious situation for the airline. For long, mainstay of Biman's management was the qualified group of officers that it inherited from PIA. With all of these people have gone on retirement and no back up executive cadre followed, the future of Biman does not look bright. The lack of quality and drive in all aspects of Biman's operation is already evident.
New breed of managers
There is absolute no doubt that a different set of managerial skills and qualities are needed if airlines are to survive in the new environment. In that environment, airline managers will be required to have new skills and qualities to face different types of priorities. Innovative workforce is needed to meet the challenges of today's changing business environment. They help companies maximise the efficiency and productivity through wide array of services and e-capabilities.
The way vast major of Biman employees handle themselves in business environment is revealing a lot about the situation in the organisation. There is general lack of understanding everywhere.
Pathetic situation
Industry insiders consider that current Biman management is the weakest in its history. The efficiency and skill level of critical workforce are also below par. So, there was little time to waste in addressing the problem concerning management. Otherwise, it is widely being felt that the huge investment in fleet modernisation will go waste.
Biman has made huge investment in new aircraft. With modern aircraft joining the fleet, skilled and efficient workforce is needed to ensure quality services, efficiency and profitability. But situation is alarming. The need is immediate, corrective action to save the national flag carrier from fatal damage. There is no alternative but to immediately infusion of new blood and intensive training programme to elevate level of efficiency and improve standard of services.
Due to lack of effort in desired direction, the national flag carrier is still stuck in quagmire of serious basic problems_ poor management, unreliable fleet and poor manpower being the three most important.
The problem of unreliable fleet likely to be eased to some extent, with the induction of two new B777-200ERs. But the current management and manpower situation in Biman is pathetic. There is urgent need for professional management and qualified manpower at all levels. Sooner these come is better for Biman and the country, because poor management and poor manpower will ruin the oppor-tunity.