Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 818 Thu. September 14, 2006  
   
Point-Counterpoint


Crisis at Biman


Strat-e-gy [strat-e-jee] (plural strat-e-gies) noun. A carefully devised plan of action to achieve a goal, or the art of developing or carrying out such a plan.

THERE you have it. If you would care to look into any of the world's dictionaries, this is just about how the word "strategy" is defined. As I write this article, a series of events are taking place surrounding Biman. The combined body of Biman's trade unions, Biman Sammilito Sangram Parishad (BSSP), have just suspended the indefinite strike they had called to force the rather "un-motherly" government to take a look at the state-owned airline.

It was important that the unions called the strike off, because if it did not, all foreign airlines operating into Bangladesh would have been faced with an inevitable suspension of flights due to non-availability of ground services. That would have been scandalous, and more than anything else, the country's image internationally would have been diminished. But the actual problems for which the unions had decided to go on strike are far from being over.

The unions demanded immediate injection of capital into Biman, in order for it to survive and sustain. But this critical situation at Biman has been deliberately brought upon by the management of the airline over at least the last four years. Surprised? Read on.

Biman's current fleet includes five DC-10-30 aircraft, providing 1,373 seats in total, and equalling to 53% of Biman's total seat availability from its entire fleet of aircraft. On August 17, 2001, the Federal Aviation Administration (FAA) had issued an Airworthiness Directive which included two Service Bulletins (SB DC10-78-061/062) to modify the thrust reversers of all DC-10 aircraft operating in the world, including that of Biman. The modification was mandatory for all airlines to complete by September 30, 2006 for the DC-10s they wish to operate beyond that date.

Biman's board of executive directors, headed by the erstwhile managing director, held as many as nine meetings between July 22, 2003 and November 20, 2005, in all of which the issue of this mandatory modification was raised for discussion and approval. The management could afford to be naive enough not to have made a decision until the meeting of the board of directors held on January 5, 2006 when the modification was finally approved, way too late to get the modification complete before the September 30, 2006 deadline, which in effect will result in grounding all five of Biman's DC-10s.

Throughout this period of over two years, invaluable time was wasted in the name of seeking unnecessary clarification from the Civil Aviation Authority of Bangladesh (CAAB), manufacturer Boeing, and service provider MRA Systems, all of whom had rejected Biman's plea for a waiver from the modification, which from the moment of its issuance was meant to be mandatory. These deliberate actions to force the grounding of Biman's workhorse aircraft seems to be nothing but a scandalous sabotage, with the intent of justifying outrageously expensive lease of aircraft, as was the case in Biman's leasing of two B737-300s in 2005. These people who are sabotaging Biman from inside the organization, essentially close to the aces of the government, deserve to be brought to swift justice.

Recently, the Ministry of Civil Aviation & Tourism has issued an official invitation for Expression of Interest from airlines interested in becoming a "Strategic Partner" of Biman. It is a wise move that may help Biman to get its acts together and be more competitive in the global airline industry defying the "sinking" it has been experiencing through decades. A prime example is Sri Lankan Airlines who have benefited largely from associating itself with Emirates. But local newspaper reports have alleged that the case of Biman is again aimed at favouring a quarter close to the government. That would be unfortunate, because you cannot pull a bullock-cart with a bunch of donkeys.

Biman urgently needs money, a lot of that actually. It needs to pay $7.5 million for the engines lying with KLM and MTU so two grounded DC-10s can take to the skies again, $2.8 million to carry out the modification on the four DC-10s, out-station fuel bills amounting to approximately Tk 20 crore, and last but not least, for the people who keeps Biman flying.

Most importantly, Biman should not only prepare a survival plan, but also a sustainability plan. It should lose much of its manpower weight by means of mutual agreement with the employees. It should also find a way to pay off, over a period of time, the outstanding fuel bills with Bangladesh Petroleum Corporation (BPC) amounting to approximately Tk 1,000 crore.

On August 4, the day before the unions were supposed to go on strike, the state minister of civil aviation & tourism had a meeting with the finance minister regarding the cash requirement for Biman to handle the crisis. The finance minister was seen on television channels criticizing Biman for being utterly inefficient and unprofessional by minimal business standards as it is a commercial organization, albeit owned by the state. This gentleman endlessly impresses me with such abstract statements from time to time. Which other airline in the world can he name, which is bound to follow rules anywhere similar to what is described in Public Procurement Regulation (PPR) 2003 and is still efficiently operational?

The PPR-2003 in simple words is a nightmare for any commercial airline, and more than anyone else, the finance minister should know better. To stay competitive in the global airline industry, Biman should be exempted from having to follow that. And before that is done, the board of directors of Biman should be saved from unnecessary bureaucrats and the executive management comprising of the airline's professionals should be given thorough and independent decision-making authority.

I am told that Biman's Authorized Capital is Tk 750 crore, of which so far approximately Tk 382 crore has been paid up by the government. I am also told that the government owes Biman an amount to the tune of Tk 600 crore as subsidies for the operation of VVIP flights over the years. Still, our beloved finance minister, while speaking to reporters, said he does not have an allocation for Biman in his budget, and will see if he can get Biman a loan from the banks. Bizarre!

The "Things To Do" list to get Biman on track would be a tediously long one, but right at the top should be to get the government to start behaving. Ill strategies to choke the airline to death should be fought out. We, as a nation, have a history of fighting out the ills and the evils.

The author, currently an aviation industry consultant, has previously worked on projects with The Boeing Company, Honeywell Aerospace, and FAA's Operational Evolution Plan (OEP) in 2004-2005.