Biman Bangladesh To Receive Boeings From 2011

May 9, 2010

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Boeing will start to deliver 10 aircraft to state-owned Biman Bangladesh Airlines under a USD$1.3 billion deal from next year.

Two Boeing 777-300ERs will be delivered in October 2011, four 777-300ERs by 2013 and four 737-800s by 2019.

The USD$1.27 billion deal awarded in 2008 for eight aircraft was later increased to USD$1.3 billion with the addition of two more aircraft.

To fund the purchase of these two aircraft next year 10 local banks have agreed to give a syndicated loan of USD$114.49 million to Biman, central Bangladesh Bank officials said.

Biman officials hope that the entire USD$1.3 billion deal will be funded by local and foreign assistance as scheduled.

Biman now has a fleet of 14 aircraft with a Boeing 777-200ER and two Boeing 737-800 on lease from EuroAtlantic Airways and GE Capital Aviation Services (GECAS) respectively in February.

With the leased aircraft Biman has resumed flights to some routes earlier cancelled. In 2006, the loss-making company was forced to halt flights to New York, Paris, Tokyo, Frankfurt, Brussels, Yangon and Mumbai due to a shortage of funds and aircraft.

Biman became a public limited company in July 2008 and new management was brought in last year.

(Reuters)