Asia/Pacific

Biman Bangladesh secures long term financing under UK Export Credit Facility, set to order 10 A350s

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Biman Bangladesh secures long term financing under UK Export Credit Facility, set to order 10 A350s

Biman Bangladesh Airlines is set to order up to ten Airbus A350 aircraft. Prime Minister of Bangladesh, Salman Rahman signed an Aviation Trade and Investment Partnership with the UK Minister of Business and Trade, Lord Dominic Johnson. As a part of the deal, Biman will have access to long-term financing under the UK Export Credit Facility which will allow the airline to acquire the Airbus aircraft under favorable conditions.

“This deal demonstrates the UK's commitment to strengthening Bangladesh’s aviation industry, in turn helping to create jobs in both countries,” said Lord Dominic Johnson.

The order for 10 A350 also includes two A350F, making them the first dedicated freighters in the airline’s fleet. The first two planes are expected in 2026. Bangladesh Minister of Civil Aviation and Tourism, Mahbub Ali, confirmed that the purchase was decided in a Board meeting.

"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,” said Mahbub Ali.

“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,” said Shafiul Azim, Biman Bangladesh's Managing Director and Chief Executive Officer.

According to sources, Airbus was offering aircraft at around half their list prices.

Airbus was vying to get an entry in Bangladesh aviation since a long time and had pitched A350-900 in March 2022.

The last time Biman operated Airbus aircraft was in 2018 when it leased two A330-200s from Wamos Air. Between August 1996 and September 2016, the carrier operated a total of six A310-300s, of which one aircraft was written off when it overran the runway at Dubai International Airport in March 2007.

Biman Bangladesh flies an all-Boeing fleet with six 737-800 and widebody fleet of four B777-300ERs, our 787-8s, and two 787-9s. Biman also has six De Havilland Canada Dash 8-400s for its regional operations.

The order for A350Fs have raised some concerns with experts claiming that Biman has no tradition with its own cargo.

Airbus orders and delivery tables for March showed a new order for four A350Fs for an undisclosed customer. It is not known if this is a split order that includes two for Biman and two for another customer.