Biman decides to purchase 2 cargo planes from Airbus

[fallstuff]

Everytime I go to Miami International Airport I see loads of older cargo aircraft including old DC-10s Biman used to fly.
I wonder what factors were considered in the decision making process.

 

[bluesky]

Yes, the maintenance will be low. Plus there will be warranty coverage on a new aircraft which can save a lot of money. Just that the precedence is low, if not absent. Many established airlines go the conversion route to save on capital costs.

Following is my personal opinion on buying new or old aircraft.

-The first thing is the value of a new aircraft is open and almost known to relevant parties.
- The real price of an old one is really unknown because many many variables are to be taken into consideration. Such as how many km it has run, what is the current fuel efficiency, how is the body conditions, how are the tire conditions, and so on.

It means a purchase representative has more ways to steal money from the negotiations for an old aircraft compared to a new aircraft because the latter's price cannot be negotiated the way an old aircraft's price can be.

When I see sallu mia signing any deal, I can say with confidence we taxpayers are fuked...

By the way, how much tax do you pay to the NBR every year? If you pay any, you should stop paying further by showing this news of stealing govt money.

 

[Bilal9]

Buying brand new aircraft for cargo is a luxury that only airlines like Emirates and Etihad can afford.

Yes - that is because they make money.

Purchase of NEW aircraft is a part of running their business which they justify with EXTRA profits and efficient operations - most of their operations is headed by and run by EU and UK expats.

Biman and CAAB people in Bangladesh are simply in it to steal the percentage from purchase of New cargo airplanes. Let's not talk about how the cargo operations are run in Bangladesh which is corrupt (and inefficient) in every step.

 

[Bilal9]

Following is my personal opinion on buying new or old aircraft.

-The first thing is the value of a new aircraft is open and almost known to relevant parties.
- The real price of an old one is really unknown because many many variables are to be taken into consideration. Such as how many km it has run, what is the current fuel efficiency, how is the body conditions, how are the tire conditions, and so on.

It means a purchase representative has more ways to steal money from the negotiations for an old aircraft compared to a new aircraft because the latter's price cannot be negotiated the way an old aircraft's price can be.

You have valid points @bluesky bhai. But all these factors are factored in when negotiating with reputable aircraft brokers. If they cheat and commit fraud, the brokers not only get a bad reputation, they also lose chances of future sales - which are not really insignificant. Their reputation is a tool of the trade, they will usually not risk losing the reputation and credibility.

The cheatery and fraud will probably be initiated from the Bangladesh side, if anything. See how eager they are to complete the purchase. Hasina needs some extra money to hire more mastans for turning the election in her favor. Or if she loses the election, she needs to stash the extra funds away at the Swiss Bank. Either way, this is perfect timing to get some urgently needed kickbacks.

Everytime I go to Miami International Airport I see loads of older cargo aircraft including old DC-10s Biman used to fly.
I wonder what factors were considered in the decision making process.

Not all aircraft are suitable for conversion into freighters (DC-10s no longer so because of aircraft panel fatigues and cracks), some are more suitable, like current newer B777s and B767s, because of the way they are structurally built.

Crucial in a Freight airliner conversion process are deletion of windows and addition of large flip-up doors which can accommodate entry of modular aircraft container packs.

Unit load device - Wikipedia

en.wikipedia.org

What is Aircraft ULD in Air Transport?

Shipping quickly globally means shipping by air. Every 24 hours, more than 140,000 tonnes of cargo will be transported. To ship this much air cargo, it takes a massive amount of aircraft ULDs to get the consignments safely from one destination to the other.

www.iata.org

Addition of large cargo doors is a large structural challenge. Also - surplus refurbished engines have to be cheaply available in large numbers. B777/767s win on both counts.

 

[Black_cats]

Everytime I go to Miami International Airport I see loads of older cargo aircraft including old DC-10s Biman used to fly.
I wonder what factors were considered in the decision making process.

The following report said Airbus offered it with half the price compared to the present market price. For info Bangladesh is purchasing 8 passenger plane as well!

For info Airbus sent Bangladesh-born UK MP Rushanara Ali to pursue Ministry of Civil Aviation and she was able to successfully pursued them.

Biman's Airbus Plane Purchase Deal (eight passenger planes and two cargo freighters) Likely During PM's UK Visit​

Date
5/4/2023 5:18:58 AM

(MENAFN- Bangladesh Monitor)

Dhaka: Biman Bangladesh Airline's deal to purchase 10 Airbus aircraft, comprising eight passenger planes and two cargo freighters, is likely to take place during the Prime Minister of the country Sheikh Hasina's visit to the United Kingdom. The Prime Minister is currently on a tri-nation tour and she will be leaving Washington for London on May 4, as per reports.

Earlier, on May 3, Biman Board of Directors at a meeting approved the proposal of buying Airbus planes.

The Prime Minister is expected to approve the deal during her visit to the UK followed by an official memorandum of understanding (MoU) signing between the Airbus and Biman authorities.

Bangladesh-born UK MP Rushanara Ali had been pursuing the Ministry of Civil Aviation Ministry in favour of the Airbus procurement.

She handed over a letter in this regard to the ministry in 2022. In the same year, Airbus representatives organised a demonstration of the new Airbus A350 aircraft at Dhaka Airport.

Reports cited a top official of the Ministry of Civil Aviation confirming they received the letter saying,“Airbus offered half the current market price of the aircraft. The Ministry of Foreign Affairs and other concerned government wings are dealing with the matter.”

On this note, reports added, State Minister for Civil Aviation and Tourism Md0 Mahbub Ali, saying, "The government plans to revive and regain the international aviation market following the Prime Minister's directives on turning the country into an aviation hub in the subcontinent. We have taken a policy decision to purchase 10 new state-of-the-art aircraft for Biman.”

Biman Managing Director and Chief Executive Officer (CEO) Shafiul Azim was further cited by reports saying,“The decision to launch several new routes, including Japan and the United States, has already been taken. The procurement of the Airbus fleet is part of our plans for the region.”

There had been recent reports citing an official from the European plane maker Airbus confirming that the firm wants to maintain its presence in Bangladesh's aviation industry, predicted to triple in passenger and cargo traffic by 2040.

Airbus representatives said the new aircraft would be ideal for meeting the rising demand in Bangladesh's aviation industry and boosting Airbus's relations with the country.

In 2022, Rémi Maillard, Ppresident of Airbus India and Managing Director of South Asia region, said,“Airbus is committed to contributing to and developing Biman Bangladesh airlines to recapture the market from foreign carriers.”

“To tackle the situation, airlines require a highly competitive modernised long-haul aircraft, which the Airbus family of products, including the long-range widebody A350, can provide,” he added.

Reports revealed an Airbus study stating, Bangladesh's aviation market grew at a 50 per cent faster rate than most other countries in the last 10 years, with a compound annual growth rate (CAGR) of 9 per cent compared to the rest of the world's (6 per cent).

Biman's Airbus Plane Purchase Deal Likely During PM's UK Visit

Dhaka: Biman Bangladesh Airline's deal to purchase 10 Airbus aircraft, comprising eight passenger <a target=_blank href=https://menafn.com/

menafn.com

Buying brand new aircraft for cargo is a luxury that only airlines like Emirates and Etihad can afford.

It’s a package of 8 passenger plane and 2 cargo freighters. Reportedly Airbus offered it at the half market price but don’t know the details yet.

 

[Bilal9]

The following report said Airbus offered it with half the price compared to the present market price. For info Bangladesh is purchasing 8 passenger plane as well!

For info Airbus sent Bangladesh-born UK MP Rushanara Ali to pursue Ministry of Civil Aviation and she was able to successfully pursued them.

Biman's Airbus Plane Purchase Deal (eight passenger planes and two cargo freighters) Likely During PM's UK Visit​

Date
5/4/2023 5:18:58 AM

(MENAFN- Bangladesh Monitor)

Dhaka: Biman Bangladesh Airline's deal to purchase 10 Airbus aircraft, comprising eight passenger planes and two cargo freighters, is likely to take place during the Prime Minister of the country Sheikh Hasina's visit to the United Kingdom. The Prime Minister is currently on a tri-nation tour and she will be leaving Washington for London on May 4, as per reports.

Earlier, on May 3, Biman Board of Directors at a meeting approved the proposal of buying Airbus planes.

The Prime Minister is expected to approve the deal during her visit to the UK followed by an official memorandum of understanding (MoU) signing between the Airbus and Biman authorities.

Bangladesh-born UK MP Rushanara Ali had been pursuing the Ministry of Civil Aviation Ministry in favour of the Airbus procurement.

She handed over a letter in this regard to the ministry in 2022. In the same year, Airbus representatives organised a demonstration of the new Airbus A350 aircraft at Dhaka Airport.

Reports cited a top official of the Ministry of Civil Aviation confirming they received the letter saying,“Airbus offered half the current market price of the aircraft. The Ministry of Foreign Affairs and other concerned government wings are dealing with the matter.”

On this note, reports added, State Minister for Civil Aviation and Tourism Md0 Mahbub Ali, saying, "The government plans to revive and regain the international aviation market following the Prime Minister's directives on turning the country into an aviation hub in the subcontinent. We have taken a policy decision to purchase 10 new state-of-the-art aircraft for Biman.”

Biman Managing Director and Chief Executive Officer (CEO) Shafiul Azim was further cited by reports saying,“The decision to launch several new routes, including Japan and the United States, has already been taken. The procurement of the Airbus fleet is part of our plans for the region.”

There had been recent reports citing an official from the European plane maker Airbus confirming that the firm wants to maintain its presence in Bangladesh's aviation industry, predicted to triple in passenger and cargo traffic by 2040.

Airbus representatives said the new aircraft would be ideal for meeting the rising demand in Bangladesh's aviation industry and boosting Airbus's relations with the country.

In 2022, Rémi Maillard, Ppresident of Airbus India and Managing Director of South Asia region, said,“Airbus is committed to contributing to and developing Biman Bangladesh airlines to recapture the market from foreign carriers.”

“To tackle the situation, airlines require a highly competitive modernised long-haul aircraft, which the Airbus family of products, including the long-range widebody A350, can provide,” he added.

Reports revealed an Airbus study stating, Bangladesh's aviation market grew at a 50 per cent faster rate than most other countries in the last 10 years, with a compound annual growth rate (CAGR) of 9 per cent compared to the rest of the world's (6 per cent).

Biman's Airbus Plane Purchase Deal Likely During PM's UK Visit

Dhaka: Biman Bangladesh Airline's deal to purchase 10 Airbus aircraft, comprising eight passenger <a target=_blank href=https://menafn.com/

menafn.com

It’s a package of 8 passenger plane and 2 cargo freighters. Reportedly Airbus offered it at the half market price but don’t know the details yet.

Half Market Price is Hasina Propaganda again.

What would help would be to Benchmark management and technical expertise and processes from France and UK on how to run efficient cargo operations, which is horrible with how Biman now runs it.

Purchase of NEW Airbus airplanes will not help in that regard. It will only help in lining Hasina and Rehana's Swiss Bank Accounts.

We have to attack the problem at the root - to solve it.

Biman Managing Director and Chief Executive Officer (CEO) Shafiul Azim was further cited by reports saying,“The decision to launch several new routes, including Japan and the United States, has already been taken. The procurement of the Airbus fleet is part of our plans for the region.”

Biman can easily run routes to Japan and US using B787-9 and B777-300ER.

Tokyo to US (LAX and SFO) is run commonly by B777 which is a 16 hour leg.

Besides Biman is already running an even longer non-stop leg from DAC to Toronto (DAC-YYZ) using B787-9 which is a 21 Hour leg.

Why they need "NEW" Airbus for these Japan and US routes - I have no idea....

Biman's average fleet age is the lowest in the region, and they need NEW aircraft AGAIN ??

They can easily add a few leased cargo freightliners to try out the cargo service and then expand.

Shob ghoosh ar durnitir harir loot.

 

[Black_cats]

Half Market Price is Hasina Propaganda again.

What would help would be to Benchmark management and technical expertise and processes from France and UK on how to run efficient cargo operations, which is horrible with how Biman now runs it.

Purchase of NEW Airbus airplanes will not help in that regard. It will only help in lining Hasina and Rehana's Swiss Bank Accounts.

We have to attack the problem at the root - to solve it.



Biman can easily run routes to Japan and US using B787-9 and B777-300ER.

Tokyo to US (LAX and SFO) is run commonly by B777 which is a 16 hour leg.

Besides Biman is already running an even longer non-stop leg from DAC to Toronto (DAC-YYZ) using B787-9 which is a 21 Hour leg.

Why they need "NEW" Airbus for these Japan and US routes - I have no idea....

Biman's average fleet age is the lowest in the region, and they need NEW aircraft AGAIN ??

They can easily add a few leased cargo freightliners to try out the cargo service and then expand.

Shob ghoosh ar durnitir harir loot.

It can be discounted by Airbus. I am wondering are these aircraft’s part of the cancelled order of Qatar Airways? Do you have any idea on it?

Airbus canceled all of Qatar's A350 airliner orders in a rare move as the battle over paint issues continues - Business Insider India

Aviation giants Airbus and Qatar have been at odds for over a year after the carrier grounded over 20 A350 jets due to airworthiness concerns.

www.businessinsider.in

 

[Bilal9]

Here is an interesting article on why Boeing dominates the Cargo Freighter Airliner market. Airbus is trying to break into this market. You will understand why they are trying to bribe Bangladeshi ministers because it is a "soft underbelly" of the market - uninformed ministers, corrupt administration, influence by Sylheti "Londoni" politicos in Bangladesh etc. etc.

Why Is Airbus Lagging Behind Boeing In The Freighter Market?​

BY JOANNA BAILEY
PUBLISHED MAR 9, 2021

Korean Airlines KAL Dual Delivery 747-8I & 777-300ERK65568-01

In the commercial airline duopoly that is Airbus vs. Boeing, the two companies regularly match each other on the pace and demand for their passenger aircraft. However, in terms of freighter jets, Boeing is king. Why is Airbus lagging behind in this important market?

Boeing dominates cargo​

In the world of commercial aviation, the two heavyweights frequently battle it out. Airbus and Boeing have dominated the world of passenger aircraft for decades and frequently jostle for position at the top of the table for orders and deliveries of new jets.

However, in the freighter market, there is no contest. Boeing lists more than 760 freighter variants ordered by customers over its history, with 732 already delivered to customers. That’s not including the many combi aircraft sold by the manufacturer or the hundreds of passenger planes that have been converted to carry cargo.



Airbus has not sold a new-built cargo aircraft for almost six years. The last order was recorded in March 2015, with four A330-200F ordered up by Turkish Airlines. The A330-200F is the only cargo offered brand new by Airbus, and only 38 were ever ordered. All 38 have now been delivered, leaving Airbus with a backlog of zero new orders.

Airbus only offers the A330-200F as a factory-built cargo plane. Photo: Airbus

While Airbus is enjoying some success with its passenger to freighter (P2F) conversions, under a modification program offered by specialist Elbe Flugzeugwerke (EFW), it’s small numbers compared to Boeing. The A330-200P2F and -300P2F have seen eight planes redelivered to airlines already, with slots filled at EFW through 2022. The A320 and A321 are also on offer as P2F conversions.

There is a growing market for converting passenger aircraft to freighters. Photo: Airbus

Nevertheless, Boeing continues to dominate the freighter market, so why hasn’t Airbus done more to challenge its position?

Cargo is in Boeing’s DNA​

Boeing has forever embraced freighter variants as part of its product lineup. Just about every type of aircraft ever developed by Boeing has been either offered as a factory-built freighter, or has been supported for passenger to freight conversions by the manufacturer.

The exception to this is the 787 Dreamliner, which has never been offered as a cargo aircraft, at least not yet. While this may change in the future, the truth is that Boeing has quite the widespread offering for cargo carriers already, so there is just no need to spend the time and investment in developing a Dreamliner freighter.

Boeing has designed the 747 from the ground up to be as capable as a freighter as it is as a cargo aircraft. Photo: Boeing

Right now, Boeing offers adequate choices for cargo aircraft, and is further supporting the market with its Boeing Converted Freighter (BCF) program. Although it is planning to draw a line under the 747F program, with the last aircraft to be produced by 2022, it has the cargo market all sewn up with the 777F, 767F and its 737-800 and 767-300 BCF.

Boeing is supporting airlines with converted second-hand aircraft too. Photo: Boeing

Could Airbus move into cargo?​

The problem for Airbus is twofold. Firstly, it doesn’t have an aircraft in its lineup that adequately provides for the cargo market. Its A330-200F is narrower than the 777, and cannot accommodate two pallets side by side. Even with the improved efficiency of the A330neo, it would struggle to compete economically. To really challenge Boeing’s dominance, it would need to look to one of its larger aircraft.

The Airbus product line up can't compete with the capacity of the 777F. Photo: Boeing

The A380F was proposed, but never developed. It did attract some orders initially, but issues with production delays of the passenger variant caused potential buyers to back out of the deals. With the A380 production ending this year, there is no more hope for this aircraft to ever work as a brand new freighter (although some airlines have attempted conversions amid last year’s cargo demand surge).

The remaining option for Airbus is the A350. On paper, it could work, with a higher payload than the A330 and efficiency improvements too. Indeed, Airbus discussed an A350F back in 2007, but wanted to focus on the passenger variants before turning any attention to this project.

With cargo demand continuing to remain high, there could be an opportunity for Airbus in the future with an A350-1000F. However, with so many widebody aircraft taken out of service in 2020, there are a plethora of cheap alternatives for cargo airlines to consider. As such, it’s unlikely to be a worthwhile investment any time soon.

 

[Bilal9]

 

[fallstuff]

Half Market Price is Hasina Propaganda again.

What would help would be to Benchmark management and technical expertise and processes from France and UK on how to run efficient cargo operations, which is horrible with how Biman now runs it.

Purchase of NEW Airbus airplanes will not help in that regard. It will only help in lining Hasina and Rehana's Swiss Bank Accounts.

We have to attack the problem at the root - to solve it.



Biman can easily run routes to Japan and US using B787-9 and B777-300ER.

Tokyo to US (LAX and SFO) is run commonly by B777 which is a 16 hour leg.

Besides Biman is already running an even longer non-stop leg from DAC to Toronto (DAC-YYZ) using B787-9 which is a 21 Hour leg.

Why they need "NEW" Airbus for these Japan and US routes - I have no idea....

Biman's average fleet age is the lowest in the region, and they need NEW aircraft AGAIN ??

They can easily add a few leased cargo freightliners to try out the cargo service and then expand.

Shob ghoosh ar durnitir harir loot.

50% off is subjective. 50% off list price is not exactly a great deal as no other airline pays full list price.
You get a better deal on bulk purchase as Air India will get, certainly not for buying two units.

 

[Destranator]

50% off is subjective. 50% off list price is not exactly a great deal as no other airline pays full list price.
You get a better deal on bulk purchase as Air India will get, certainly not for buying two units.

Bulk purchase is obviously not an option for Biman. If we really are getting 50% off regular price for buying just 2 examples, it is a great deal.

 

[Black_cats]

50% off is subjective. 50% off list price is not exactly a great deal as no other airline pays full list price.
You get a better deal on bulk purchase as Air India will get, certainly not for buying two units.

We are purchasing 10 where 8 are for passenger and 2 for cargo.

I am wondering is it part of Qatar airways cancelled deal with Airbus?

 

[mb444]

2 cargo and 8 passenger planes.

Good news...fully endorse BD-UK closer engagement in every field. Biman however needs to be run better.... but this scaling up is massively overdue.

Now finalise the EFT deal for BAF.

Biman Bangladesh in line for Airbus aircraft after UK aviation pact

Biman Bangladesh Airlines appears to be in line for a fleet modernisation with Airbus aircraft, following a bilateral agreement between the Bangladeshi and UK governments. The agreement centres on an aviation partnership, according to the Bangladeshi prime minister's investment adviser, Salman...

www.flightglobal.com

 

[Bilal9]

Bulk purchase is obviously not an option for Biman. If we really are getting 50% off regular price for buying just 2 examples, it is a great deal.

Well yes - but a great deal for something that we really could not use or something completely unproven.

The A350F is not even made yet, they will build two for BIMAN which will be one of the first launch customers for Airbus A350F freightliner.

The A330F (which is the ONLY OTHER freightliner airbus sells - please see article above for details) however has seen some sales in small numbers, but nothing on the scale of what numbers Boeing Freightliners (B777s and B767s) sell in.

BIMAN will be among the first guineapigs for testing out all the bugs and be one of the main subjects for any growing pains encountered by using this brand new A350F model.

This is brand new territory for both Airbus and BIMAN. I hope this works out for both.

BIMAN is placing a LOT of confidence in Airbus by making this purchase.

And as always - an amla (bureaucrat) driven purchase in lieu of a technical feasibility driven purchase.

 

[nahtanbob]

Everytime I go to Miami International Airport I see loads of older cargo aircraft including old DC-10s Biman used to fly.
I wonder what factors were considered in the decision making process.

UPS and Fedex have older cargo aircraft because the aircraft is sitting on the tarmac for 16-17 hours a day. It makes one flight from a city X to a regional Fedex or UPS hub.