Biman
Topic Author
Posts: 44
Joined: Wed Sep 20, 2006 11:46 am

Biman To Be Privatised

Mon May 21, 2007 1:21 pm

Bangladesh government has decided in principle to float Biman Bangladesh Airlines, wholly state owned enterprise, into a public limited company. They have agreed to slash the number of employees by 50% from some 6,800 for only 13 aircrafts (a number of which are not even in service). It has some 14 trade unions and is regarded as a den of corruption.

"Biman, incorporated on January 4, 1972, is making losses of around Tk 4,000 to Tk 5,000 crore every year due to corruption and inefficiency." (Exchange rate: US$1 = BD Tk 60)

http://www.newagebd.com/2007/may/20/front.html#4
 
PPVRA
Posts: 7878
Joined: Fri Nov 12, 2004 7:48 am

RE: Biman To Be Privatised

Mon May 21, 2007 1:42 pm

That's good to hear. A growing economy like Bangladesh needs an efficient airline that can also contribute to the economy.

Hopefully they will find good owners and a good management team.
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
reality
Posts: 384
Joined: Fri Apr 06, 2007 1:01 pm

RE: Biman To Be Privatised

Mon May 21, 2007 2:27 pm

Wouldn't it just be better to start up a new airline from scratch?
 
AirbusCanada
Posts: 525
Joined: Mon Nov 15, 2004 5:14 am

RE: Biman To Be Privatised

Mon May 21, 2007 5:34 pm

Quoting Reality (Reply 2):

form a branding point of view, that would make perfect sense.
 
boacvc10
Posts: 469
Joined: Tue Jul 25, 2006 2:31 pm

RE: Biman To Be Privatised

Tue May 22, 2007 5:39 am

Quoting Biman (Thread starter):
into a public limited company

I notice the original poster used a term ".. to be privatised". But in the context of Bangladesh politics, reality, Biman should *only* be a public limited company, hence the title of the thread may be misleading. It was *never* public, where anyone else than the Gov't of Bangladesh had any shares of this "private limited company". I do support it being turned into a FOR profit, PUBLIC LIMITED company... However

It is very common to have the public share auctions of IPO companies often corrupted by third parties with vested interests, who rig the distribution/selection of the IPO to favor their own shareholder blocks. The share distribution process is rarely done in public and through independently verifiable process - and this issue has come up before with significant scandals involving Banks, Public sector manufacturing industries etc.

I know the tradition of Biman needs to live on, but it would be much better to complete deregulation of the civil aviation industry than keep on flogging this dead horse.

BOACVC10
Up, up and Away!
 
MaverickM11
Posts: 15265
Joined: Thu Apr 06, 2000 1:59 pm

RE: Biman To Be Privatised

Tue May 22, 2007 5:57 am

Quoting Biman (Thread starter):
It has some 14 trade unions and is regarded as a den of corruption.



Quoting Biman (Thread starter):
Wouldn't it just be better to start up a new airline from scratch?

To me it seems more sensible to start over anew rather than follow the Biman-Alitalia model of airline success. If I were the Bangladeshi government I would be on my knees begging Tony Fernandez or Emirates or Singapore to start something--anything--decent.
E pur si muove -Galileo
 
cchan
Posts: 952
Joined: Sat May 17, 2003 8:54 pm

RE: Biman To Be Privatised

Tue May 22, 2007 7:38 pm

If Biman can't come up with the money to replace their old aircrafts, pay off debts and do proper repairs, starting from scratch is the only option.
 
reality
Posts: 384
Joined: Fri Apr 06, 2007 1:01 pm

RE: Biman To Be Privatised

Wed May 23, 2007 12:20 am

An interesting fact I just read in an article about Skybus.....

• Most airlines employ 60 or 70 employees per airplane. By maximizing automation and outsourcing numerous tasks, Skybus needs only 30 to 35 employees per airplane (plus all Skybus employees have an equity stake in the company, giving them a vested interest in maximizing productivity).

.....so I'm not sure if bringing the number of employees at Biman down from 600 per plane to 300 per plane will help much.
 
LH526
Crew
Posts: 1960
Joined: Fri Aug 04, 2000 2:23 am

RE: Biman To Be Privatised

Wed May 23, 2007 12:29 am

Quoting Reality (Reply 2):
Wouldn't it just be better to start up a new airline from scratch?



Quoting Airbuscanada (Reply 3):
form a branding point of view, that would make perfect sense.

 yes  Truer words have rarely been spoken!  thumbsup 

Mario
LH526
Trittst im Morgenrot daher, seh ich dich im Strahlenmeer ...
 
Hamlet69
Posts: 2466
Joined: Thu Mar 09, 2000 2:45 am

RE: Biman To Be Privatised

Wed May 23, 2007 2:26 am

Quoting Reality (Reply 2):
Wouldn't it just be better to start up a new airline from scratch?

What is the current (updated) status of this venture?:

http://www.royalbengalairline.com/belief


Anyone?


Regards,

Hamlet69  profile 
Honor the warriors, not the war.
 
SKY1
Posts: 611
Joined: Sun Apr 09, 2006 11:03 am

RE: Biman To Be Privatised

Wed May 23, 2007 9:58 am

Are not Royal Bengal Airlines and Biman different carriers?
Time flies! Enjoy life!
 
Hamlet69
Posts: 2466
Joined: Thu Mar 09, 2000 2:45 am

RE: Biman To Be Privatised

Wed May 23, 2007 10:37 am

Quoting SKY1 (Reply 10):
Are not Royal Bengal Airlines and Biman different carriers?

Yes they are. Biman is the state-owned national carrier. Royal Bengal is a venture being set up in the UK by expatriates to operate both international flights between the UK and Dhaka, as well as domestic Bangladesh routes. According to their site, they've recently acquired their first two aircraft (looks to be BAe's from the picture) to start domestic operations. However, it also appears they are still looking for considerable investment capital, so I was wondering if there was anyone closer to the situation that had a good read on where Royal Bengal stands? How is the government responding to this entrant?


Regards,

Hamlet69  profile 
Honor the warriors, not the war.

Who is online