Biman Bangladesh Airlines Ltd on March 15 signed a memorandum of understanding (MoU) with the US plane maker Boeing to buy 8 new-generation aircraft worth $1.265 billion (equivalent to Tk 8,728 crore). Biman’s Managing Director (MD) Dr MA Momen and Regional Director of Boeing Glen A Green signed the MOU at Balaka, Biman’s head office in Dhaka.

Sources in the Biman said the final agreement between Biman and Boeing will be signed by April 15.

This is for the first time Biman independently is buying aircraft directly from the manufacturing company, without any political and government interference since its inception in 1972. Under the accord, the first consignment of four Boeing 777-300ER planes, with 463-passenger capacity, will be delivered between July and December, 2013, while the four 394-seater Boeing 787-8s (yet to enter service) will be handed over in July-November, 2017.

The price of four Boeing 777-300ER with General Electric engines will be about $731 million, while the four Boeing 787-8s will cost about $531 million. Biman became a public limited company in July 2007.

Mahbub Jamil, special assistant to the Chief Adviser for Civil Aviation and Tourism, Geeta Pasi, US charge d’Affaires, and members of Biman Board of Directors, were present among others at the MoU signing ceremony. Terming the signing of the MoU as a landmark and revolutionary decision, Mahbub Jamil told reporters that this will pave the way to buy another four aircraft in coming years.

Geeta Pasi welcomed Biman’s initiative to buy 8 aircraft, saying that now Biman will be able to meet the growing demand of the aviation market. Biman has paid $ 1.54 million to Boeing as booking fee for the purchase deal. The money is refundable in case Biman decides to back out of the deal. Under the accord, the Boeing will not only deliver aircraft, but also provide technical and training supports for Biman’s staff, route planning, upgradation of the airport and preparation of a marketing strategy for Biman.

The reconstituted Biman’s board on March 9 in its marathon meeting decided to award the contract to Boeing, considering its offer ‘more favourable’ than its European rival Airbus. Boeing will also provide necessary assistance so that Biman can take lease four Boeing aircraft to meet the aircraft shortages. Of the four leased planes, the first consignment of two Boeing 777s will arrive next year and another two in 2010.

Biman currently owns three types of aircraft–four McDonnell Douglas DC10-30s, four Fokker F28s, and three Airbus A310-300s. Production of DC10-30s and F28s ended in the 1980s due to their lack of viability in service. Of the total of 11 planes, only four or five are operating now, while the rest are grounded.