Plans to resume flight despite fear of losses
Biman is likely to resume its New York flight apparently to meet the government pledge despite fears of losses again due to tough competition on the transatlantic routes, insiders say.
Though the airliner carried a relatively good number of passengers last time, it counted between Tk 35-40 lakh loss on each flight mainly because of using fuel-guzzling ageing DC-10 aircraft.
Biman in August 2006 shut its flights to New York along with Brussels, Paris, Frankfurt, Mumbai, Narita and Yangon in the wake of aircraft shortage and a record loss of Tk 454 crore in 2005-06 fiscal year.
The state-owned carrier now says it wants to use a hired Boeing 777-200ER aircraft to carry passengers on Dhaka-Manchester-New York route twice a week.
Officials say the Boeing 777-200 ER aircraft has relatively high-fuel efficiency and may help reduce fuel costs.
But chances of losses are still there, they add.
“We foresee a tough competition and intense fare war as almost all the globally known airlines operate on transatlantic routes. So there is a chance of losses, though we’ll use fuel efficient aircraft,” Jamal Uddin Ahmed, chairman of the Biman Board of Directors, told The Daily Star over the phone.
The only hope for Biman is the movement of non-resident Bangladeshis (NRBs).
The state-owned airliner fears losses by flying to New York at a time when it tries to remain in the black by shaking off the past marked by losses. After posting losses in three consecutive years, the airline recorded a profit of Tk 5.91 crore in 2007-08 FY.
Its net profit shot up to Tk 15.58 crore in 2008-09, according to Bangladesh Economic Review.
Insiders say the airliner plans to reopen flights on loss-incurring Dhaka-New York route in line with the promise of the current government to NRBs, who had been demanding air link between the two cities.
Early this week, Prime Minister Sheikh Hasina assured expatriate Bangladeshis in New York that Biman’s flight would resume in 2011.
Officials say Biman authorities have informed the government of the risk of losses for reopening the NY flights and urged the government for support either in the form of compensation or fuel subsidy.
In line with the promise of Sheikh Hasina administration that took over in January 2009, Biman had several times set targets to resume NY flights but failed.
The Biman chairman said going through various formalities such as permission from different US offices including Federal Aviation Administration, New York Port Authority and John F Kennedy Airport lingers resumption of the flights.
“We have completed almost all formalities. Now we are waiting for the security clearance of Shahjalal International Airport from Transport Security Administration of the US,” said Jamal Uddin.
Biman opened flights to New York in 1993.
