The Council of Advisers on May 19 approved some steps to turn Biman Bangladesh Airlines into a Public Limited Company (PLC) by June. It asked the ministries concerned to prepare a phase-by-phase programme to make the huge loss-incurring national airlines into a profitable organisation. At its weekly meeting, the council approved in principle a proposal to review Biman’s possible manpower cut, audit its current financial state and sketch out alternatives to its fuel purchase arrangements with Bangladesh Petroleum Corporation (BPC).

Earlier on April 25, the caretaker government had decided to turn Biman into a PLC within June under a re-structuring plan. A high-powered committee headed by the secretary of the civil aviation ministry in March made recommendations to this effect. The national flag carrier now has a 4,800-strong manpower. According to the government plan, Biman will have to undergo internal reforms before it becomes a PLC with 100 percent state ownership and its shared would be offloaded to the private sector once the company becomes profitable.

Meanwhile, Biman will slash its manpower under a Voluntary Retirement Scheme (VRS) and a revised organogram. It is also going to change its rules of business. As a PLC, Biman will be owned by at least seven public organisations through floating of shares. A company board would be formed comprising these organisations that will take all decisions regarding Biman. Biman is also planning to buy new generation aircraft as part of its re-structuring.

A private operator will be appointed to run the airlines on a commercial basis.