Biman plans to recruit a general sales agent for opening its
cargo service in 15 offline destinations in Europe.
To be appointed for at least three years, the GSA would be expected to look after the national carrier’s freight service where it doers not operate flights, Biman officials said.
They said that the tenders would be floated in July or August inviting interested bidders.
The GSA would be required to handle Biman’s cargo service in the European countries except for UK, Ireland, Greece and Italy where it operates flights.
But the GSA service would be discontinued in any of the offline destinations if and when Biman opens its flights there, they said.
The interested companies would be required to have offices and trucking facilities throughout Europe and code sharing with other airlines.
Biman managing director Kevin Steele told New Age, ‘The tender document is ready and we expect to float it soon.’
He said, ‘We are negotiating with several airlines and freighter companies to get free space for Biman on their flights to and from the offline European destinations.’
He said that something would shape up by July.
Biman expects to expand its cargo service in over 15 European destinations where it does not operate flights, he said.
In the first year, he said, Biman expects to earn a profit of $ five million from the proposed cargo service at zero costs.
He said that Biman’s profits from the proposed cargo service could grow by over 50 per cent each year and the cumulative growth of profits could reach around $ 24 million at the end of three years.
He said that the GSA would be paid about 2.5 per cent of the overall profits as commission. In addition it would get five per cent as cargo handling charge permissible under International Air Transport Association rate to cover the GSA’s costs of offices, staff, trucking and telecom expenses.
Europe, having no borders, was the best place for doing such business as the continent facilitates truck movement from one country to another, he said.
He said that most major airlines avail of this facility in Europe.
Kevin said that Biman never had offline cargo service in Europe.
Biman’s GSA based in London and Rome covers only online destinations, Kevin said.
The offline GSA would be something completely new for Biman, he said.
Around 400 tonnes cargo is transported each day from Dhaka, according to Hazrat Shahjalal International Airport Cargo Village officials.
They said about 90 per cent of the export cargo from Dhaka was readymade apparels and the rest accounts for medicines and perishable goods.
The export cargo from Dhaka is mostly handled by foreign airlines due to Biman’s shortage of aircraft, they added.
Now, Biman carries only 24 tonnes of export cargo each day from Dhaka to London.
Emirates, Saudia, Cathay Pacific, Turkish Airlines, British Airways, Malaysia Airlines and Singapore Airlines operate 21dedicated cargo flights from Dhaka, they said.
-With New Age input