Biman Bangladesh Airlines, the country's flag carrier, has been facing prolonged financial losses on multiple routes, primarily due to inadequate feasibility studies and political interference in route selection.
According to sources within Biman, the state-owned airline is experiencing financial losses on six routes: Narita, Manchester, Delhi, Kuwait City, Kolkata, and Guangzhou. The Narita route alone incurs an average monthly loss of Tk 20 crore.
Among the loss-making routes, they said, the worst affected are the Narita (Japan) and Manchester (UK) flights.
Biman authorities have said that a shortage of passengers has forced them to reduce the frequency of flights on these routes, with efforts underway to ensure profitability in the Middle East.
Six Loss-Making Routes Identified
Allegations suggest that the airline launched three weekly flights on the route without conducting a proper feasibility study. To curb losses, the frequency was reduced to two flights per week from October.
Biman has also been sustaining losses on its Kolkata and Delhi routes. Following recent political shifts in Bangladesh, India has restricted visa issuance, causing a severe decline in passenger numbers.
As a result, weekly flights on the Dhaka-Kolkata route have been cut from 14 to seven, while the Dhaka-Delhi route has seen a reduction from seven to three flights per week.
A major factor contributing to Biman’s losses is operating flights with nearly half the seats unoccupied. The airline recently appointed a new Managing Director, Md Safiqul Rahman, in an attempt to mitigate financial setbacks.
Profits in Ground Handling Services
Despite losses on several routes, Biman has remained profitable through its ground handling operations. To enhance this segment, Hazrat Shahjalal International Airport recently acquired some advanced pieces of equipment, including seven air-conditioning units, two air start units, and nine belt loaders.
Losses on Narita and Manchester Routes
Biman launched its Narita flights with great fanfare, establishing direct connectivity between Dhaka and Japan on 1 September 2023. But within the first eight months, the airline accumulated losses exceeding Tk 166 crore on this route. This decision has been criticised, as a similar service was discontinued in 2006 due to continued financial losses.
Despite that history, the route was revived 17 years later, reportedly for political reasons, without a thorough commercial assessment.
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The Manchester route is also unprofitable, with each Dhaka-Manchester-Dhaka flight averaging a loss of Tk 1.10 crore. To counter this, Biman reduced one flight per week from October and introduced a 30% fare discount to attract passengers.
Temporary Suspension of Manchester Flights
In a recent announcement, Biman stated that to ensure the smooth operation of Hajj flights and due to aircraft shortages, flights on the Dhaka-Sylhet-Manchester route will be temporarily suspended from 1 May 2025 to 10 July 2025. Regular operations on this route are scheduled to resume on 11 July 2025.
Efforts to Boost Middle Eastern Routes
The Ministry of Civil Aviation and Tourism has reported that four Middle Eastern routes—Abu Dhabi, Sharjah, Doha, and Muscat—have turned profitable, partly due to additional baggage allowances for passengers. Other profitable routes include London, Toronto, Medina, Riyadh, Jeddah, Dammam, Dubai, Bangkok, Kathmandu, Kuala Lumpur, and Singapore.
Biman is also expanding its network, with new international destinations including Malé, Kunming, Sydney, Jakarta, Seoul, Wuhan, and Bahrain.
Biman's capability in ground handling at ‘Third Terminal’ under scrutiny
Efforts are also going on to relaunch flights to New York. To enhance profitability, the airline is focusing on increasing revenue per passenger, reducing operational costs, and improving adherence to flight schedules.
Increased Demand for Toronto Route
Due to rising passenger demand, Biman has increased its flights on the Dhaka-Toronto route. Since 31 October 2024, the airline has been operating three weekly flights—on Saturdays, Tuesdays, and Thursdays—with the newly added Thursday flight catering to growing demand.
Adjustments to European Routes
According to Biman’s General Manager for Public Relations, Bosra Islam, flight frequency reductions on some routes are not solely due to low passenger numbers but also other operational factors. She added that once India resumes issuing visas at normal rates, demand for flights to Kolkata and Delhi is expected to recover, leading to potential flight increases.
Meanwhile, Biman’s Director of Marketing and Sales, Ashraful Alam, has confirmed that, from 28 March 2025, an additional flight will be introduced on the London route, increasing the total to five per week. Similarly, the Rome route will see an increase from two to three weekly flights.
Need for Strategic Partnerships and Skilled Workforce
Aviation expert and former Biman board member Kazi Wahidul Alam has emphasised the importance of forming inter-partner airline links to expand the airline’s network and increase passenger flow. He noted that Narita-bound passengers should have seamless connectivity to other international destinations, which would improve ticket sales and profitability.
Alam stressed that merely opening new routes is not enough; targeted marketing and skilled personnel are required to attract more passengers. He highlighted that private airlines are outperforming Biman in many aspects due to superior ticketing and marketing strategies.
“If other airlines are making profits on these routes, why can’t Biman?” he questioned, urging the airline to enhance its efficiency and competitiveness.
Work underway to enhance Biman's GSE fleet with modern equipment
Current Fleet and Operations
Biman currently operates a fleet of 21 aircraft, serving 23 international destinations. While some routes continue to struggle, others show promise, with strategic expansions and operational improvements aimed at securing the airline’s long-term profitability.