Biman struggles with loss-making routes
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. 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.
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.
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.
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.
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.
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. 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.