Biman may sue after US FAA bars DC-10
A Biman Bangladesh Airlines McDonnell Douglas DC-10 en route to New York Kennedy airport was forced to divert to Montreal on 14 May after the US Federal Aviation Administration refused it entry into US airspace.

The incident, which is being called a “mistake” by at least one US State Department official, has prompted the Bangladeshi carrier to consider legal action against US authorities to recoup its losses.

According to reports from Bangladesh, the FAA barred Biman’s scheduled Dhaka flight from landing at Kennedy for unspecified reasons. It diverted to Montreal, where Canadian authorities inspected the DC-10, but failed to find any flaws.

Biman believes the incident damaged its image, put the lives of the crew and 257 passengers at risk, and caused financial losses. The FAA was unavailable for comment.

Separately, the cash-strapped carrier reportedly plans to suspend unprofitable long-haul services to parts of Asia, Europe and the USA.

Last month Biman changed the routeing and cut the frequency of its Kennedy service. The new routing is Dhaka-Dubai-Manchester-New York-Manchester-Dhaka; the previous European stop was in Brussels.

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The Background:

Strategic partner for loss-making Bangladesh Biman soon
Dhaka: The Bangladesh government, which has been talking to Emirates, Thai Airways and Gulf Air among others, may soon announce a strategic partner for Bangladesh Biman.

It is part of an urgent effort to salvage the crisis-ridden national flag carrier, Bnagladesh Daily News news agency said (on May 31, 2006), quoting State Minister for Civil Aviation and Tourism Mirza Fakhrul Islam Alamgir.

"We are talking to interested parties... If we find it feasible, we will float international tenders shortly," the minister said. "It is very urgent".

The state-owned Biman has accumulated huge losses over the years, due partly to rising fuel prices, but more due to bad management and lack of infrastructure. It shelved plans to buy new aircraft and last week announced the suspension of its prestigious but loss-making Dhaka-New York flights.

The minister noted that the Sheikh Hasina government had undertaken a project, funded by the World Bank, to appoint strategic partners for Biman and hired consultants to carry out the work. Despite paying consultants US$ 1.6 million, "nothing had been achieved," he was quoted by the Bangladesh Observer newspaper as saying.

He said if they found it viable and feasible, they would go for international tenders in order to ensure the quick appointment of a partner.

Alamgir said, "We've seen SriLanka Airlines are doing fine following its partnership with Emirates. We think we can also have a strategic partner like SriLanka because we have a very good market," Alamgir said.

Biman currently has six DC-10 aircraft aged 20 years or older in operation, four Airbus 310s bought in the early 1990s, and three Fokker F-28 aircraft that are mostly used for domestic and regional Flights.

Bangladesh Biman suspected as 'alien' at New York
Sat, 2006-05-20 07:49
Dhaka, 20 May, (INS + Asiantribune.com): State Minister for Civil Aviation and Tourism Fakhrul Islam Alamgir Thursday said the US Federal Aviation Authority (FAA) did not allow the Bangladesh Biman flight in New York as they suspected it as an alien flight similar to that like the evil-fated 9/11.

At a press briefing held at the PID auditorium, the state minister said they were discussing with the US lawyers for demanding compensation from the FAA. But the assessment in this regard was yet to be completed.

Replying to different quires, the State Minister said that the government decided to stop Dhaka-New York flight of Bangladesh Biman as it has to incur loss of nearly TK 11 million per flight.

Minister, however, admitted the allegations of corruption and money misapplication in the Bangladesh Biman and said, "We are investigating into the matter and if anybody is found guilty, he would be punished."

In another reply, the state minister said that the government has no plan to hand over the Biman to the private sector, but the government has plans to offload its 61 per cent share.

The Biman also is looking for strategic partners for its maintenance purposes.

While talking to newsmen at a briefing on 'SAARC Tourism Ministers Meeting' scheduled to be held on May 20-21 in Cox's Bazar, Minister said that the Biman is passing through a critical period.

Bangladesh Biman hits the buffers 
By Alastair Lawson
BBC  

Passengers often stay "home in the sky" for longer than expected
To passengers on board Biman Bangladesh Flight 001 from Dhaka to New York, the airline's catch-phrase "Your Home in the Sky" had more than a ring of truth.

Passengers were forced to accept airline hospitality for longer than expected earlier this week when it was refused permission to land in the US.

The plane was diverted to Canada after US authorities were reported to be concerned about its mechanical flaws.

Biman now says that the US authorities have apologised over the incident.

But that cannot overshadow the fact that the Bangladesh national carrier has recently encountered numerous setbacks.

On Tuesday the cash-strapped airline announced that it may suspend long-haul flights to Europe, America and parts of Asia in an effort to reduce heavy losses.

Bloated numbers

Services to New York will be cancelled and flights to Tokyo, Paris, Frankfurt, Bangkok and Singapore may be affected.

Biman's erratic passenger schedule, the poor state of its 13 dwindling and elderly aircraft, its bloated staff numbers and its failure to pay fuel bills have all given the impression that it has hit severe turbulence.

 
The government is reluctant to let Biman operate independently

Analysts say that years of rampant corruption and incompetent management have led to fears that the airline's future is by no means secure.

"We are suffering a loss of $80,000 on each flight to New York because of operating old DC-10 aircraft," says Aviation Minister Fakhrul Islam Alamgir.

"We urgently need to replace the fleet, but we don't have the funds to do so."

The minister is no doubt well aware that there is barely a single case of aircraft-leasing by Biman in recent years that has not been accompanied by allegations of corruption - with government appointed middlemen usually named as the beneficiaries.

The airline's woes have been pinned by many observers on the government's reluctance to relinquish control of Biman and allow it to stand on its own feet.

'Rolling in wealth'

The loss-making flight from Dhaka to the US was only reported to have survived in recent years because Prime Minister Khaleda Zia insisted in 2004 that it be kept going in the interests of the country's "national prestige".

"Biman has always remained an appendage of the Civil Aviation ministry," says an editorial in the Bangladesh newspaper, The News Today, "with too many people competing to get their fingers in the pie.

 HAS BIMAN BOMBED?
Officials say it will incur huge losses in the next financial year
Five of its 13 aircraft are at least 20 years old
It owes millions of dollars to Bangladesh Petroleum Corporation
It faces spiralling costs in aircraft maintenance and fuel prices
A DC-10 and a Fokker F-28 were written off in recent accidents

"The management structure has always been mediocre, with former Air Force personnel monopolising the chief executive's post.

"It is almost impossible to find a single senior Biman employee, from cabin crew to middle management, who is not rolling in wealth."

The price of these failures is clear to see: hundreds of passengers suffering daily delays - usually between six to 24 hours - and many requiring food and accommodation.

One report estimated that Biman pays every passenger it transports an average of $20 in compensation for delays.

The government insists it is working to make Biman more efficient and claw back loses which approached $42m last year.

It says that it is trying to find a "strategic partner" to improve the airline's fortunes.

But it said the same thing five years ago - and true to form - more delays are expected.

New generation aircraft needed: Biman incurs over Tk 500 cr loss in Dhaka-NY route
By Sheikh Mohiuddin
Fri, 26 May 2006, 10:59:00

 
Despite loss of commercial viability , the state-run Bangladesh Biman Airlines has decided to continue its Dhaka-New York flight till August 3. The decision has come responding to the appeal of the Bangladeshi expatriates staying in the USA.

Official records show that the national flag carrier incurred over Taka 500 crore loss since operation of Dhaka -New York Biman flight in December , 1993.

In view of this , the policymakers of Biman Bangladesh Airlines decided to suspend Dhaka-New York flight to ease financial burden of the organisation with effect from June 3 . But later they reviewed their decision and decided to continue the flight for another two months as per instruction of the highest authority of the government

Under the revised arrangement , each passenger will have to pay 200 US dollars against surcharge in addition to existing fare .

We may consider the operation of Dhaka-New York flight after expiry of fresh deadline if the management could procure new generation aircraft to continue Dhaka-New York flight , said a senior official of the Biman . The official further said , the management is looking for new generation aircraft on lease as there is a decision not to go for big purchase at the moment due to fund constraints

According to the official , the Dhaka -New York flight has lost its commercial viability due to high operational cost .As per official records, fuel consumption by the aircraft contributes to 40 per cent of the operational cost

As ageing aircraft of Bangladesh Biman consumed excess fuel , operational cost of Dhaka -New York flight was much high finally leading to financial loss to the national flag carrier .

The level of operational cost would be just half if the Biman could operate its flights with new generation aircraft, said the officials.

Presently the organisation is managing both domestic and international flight with 13 old aircraft . It has a fleet of five DC-10, four Airbus and four F-18 aircraft .

Biman needs more aircraft but the plan to procure new generation aircraft - four Boeing 777, and six Airbuses has been shelved due to non-availability of funds despite urgent need. The Biman management made the proposal to procure new aircraft nearly two years ago involving an amount of Taka 7,500 crore approximately.

The Biman is likely to incur over Taka 300 crore loss in the current fiscal year ending on June 30 The management of the organization blamed price hike of fuel for losses .

The officials said that in the current fiscal year ending on June 30, the Biman had a target to earn at least Taka 25 crore profit but it could not happen because of sharp increase in the price of fuel, they added

During last financial year, Biman incurred Taka 300 crore loss for various factors .

Meanwhile, the policymakers of Biman Bangladesh Airlines are now looking for taking a strategic partner as a part of their efforts to salvage the national flag carrier. A feasibility on the plan is underway, said a senior official .

US State Deptt expresses deep regret: NY flight to be suspended from June 3: FAA mistakenly barred Biman flight to NY
By Staff Reporter
Wed, 17 May 2006, 08:38:00

 
The US Federal Aviation Authority (FAA) admitted that it had mistakenly barred Bangladesh Biman's aircraft with 257 passengers on board from landing at the JFK airport in New York for security reasons.

A senior official of Biman Bangladesh Airlines told The New Nation yesterday that Bangladesh mission in USA, quoting a State Department official, confirmed that there was no restriction for Biman to operate its flights to and from New York.

Official sources revealed that the operation of Biman flight in Dhaka 0New York route would remain suspended with effect from June 3, this year

The policy makers of the national flag carrier has taken such a decision as per recommendations of the Flight Restructuring Committee formed earlier. The committee suggested the suspension of the route as operation of each flight costs Taka 56 lakh loss.

However, the Biman official said that the FAA on Sunday last mistakenly barred the New York-bound BG-011 flight of Biman Bangladesh Airlines from entering the US air pace for security reasons.

Later, the aircraft, carrying 257 passengers, landed at nearby Montreal Airport fearing fuel shortage, where the Canadian authorities inspected it and they did not find any flaws in it.

Management of Biman Bangladesh Airlines, however, is considering legal options to seek compensation from the FAA for its action which caused financial loss and damage to image of the national flag carrier

Management of Biman said that the FFA had grossly violated international civil aviation rules by not allowing its flight to land in New York.. It said that the US State Department expressed its deep regret for the suffering of the passengers caused by the FAA's mistake.

According to a handout issued by the Foreign Ministry yesterday, the Bangladesh Embassy in Washington is in constant contact with the State Department and the FAA to make sure the Biman flights can operate smoothly, Official sources pointed out that the Biman authorities had contacted its Attorney in US to examine legal competency to seek compensation from the FAA for restricting its flight from landing in New York, the official said.

The flight had left ZIA with the 257 passengers at 8:20 AM (BST) on Saturday for New York and was scheduled to land at JFK Airport in the US city at 6:30 AM (BST) on Sunday.

Biman authorities on Sunday asked the American Federal Aviation Authority through Bangladesh Mission in US to let them know the reasons for denying landing permission to the New York-bound Biman's flight.

Responding to the query Director of US State Department for Southern and Middle Asia Affairs (Bangladesh and Pakistan) Mr Engelken also acknowledged that the FFA mistakenly took the decision not to allow landing of Biman's flight at JFK airport in New York.

Referring to the statement of Mr Engelken, Biman authorities said the State Department had already asked the FAA to explain in details.

After discussion with the FAA, Engelken expressed deep regrets to the Biman authorities through Bangladesh Mission in USA, according to the press release issued by Biman yesterday.

The BG-011 flight returned to Dhaka from Canada Monday night and it left for Jeddah in the early hours of yesterday.

Meanwhile, the Biman authorities may suspend its flights in Dhaka- Myanmar, Dhaka-Frankfurt, Dhaka -Paris and Dhaka-Sylhet routes in order to avoid staggering financial loss.

The Biman management may take the decision to implement the recommendations of the Flight Restructuring Committee

Official sources said, smooth Biman flights in both domestic and international routes are also being hampered due to shortage of aircrafts..

Presently, Biman has five DC-10, eight Air buses and six F-29 aircrafts. Of the total, three DC-10 aircrafts are operating while another remains grounded on technical ground.

Officials said that procurement of required number of aircrafts had remained only in the file due to fund constraints.