Biman seeks Tk 1,500cr loan from Sonali Bank to meet costs

Biman Bangladesh Airlines has sought Tk 1,500 crore as loan from Sonali Bank to meet its essential costs including paying salaries to its several thousand employees, amid the coronavirus pandemic that has grounded airlines all across the globe.

Biman applied to Sonali Bank on April 13 to avail the loan within this month, said Biman's Managing Director and CEO M Mokabbir Hossain.

In a drastic effort to cut cost, Biman already announced a 10 percent cut to basic salaries for employees from the rank of officers and above, and slashed nine other benefits and allowances for all employees from March.

Suffering from a serious cash crunch due to suspended operations, the national flag carrier incurred losses approximating to Tk 450 crore in the last two months, Mokabbir Hossain told The Daily Star.

Biman's other major income from ground handling and cargo handling have also fallen flat as the government suspended air communications with all countries except for China from March 16 to April 30.

Biman is the only organisation that provides ground handling services to different airlines at Hazrat Shahjalal International Airport.

"We do not have any income for the last two months. Biman was forced to suspend all its routes one after another since January. In the last three months since then, Biman has been under financial pressure of around Tk 1,300 crore," the Biman CEO said.

Since March 30, Biman was forced to suspend flights to and from all its 17 international destinations, and had all 18 aircraft in its fleet remain in hanger.

"Although Biman is not running any flights, Tk 266 crore will be needed for maintenance of the aircraft," he said.

Besides, Tk 98 crore will be needed this month to pay for six aircraft in the Biman fleet which were procured on lease, he also said, adding "Biman will also need Tk 70 crore to pay loan installments to banks."

For meeting permanent operational costs, Biman will also need Tk 200 crore, he said.

The airliner will also have to refund several hundred crore taka dues for cancellation of air tickets that were booked earlier.

There are around 4,300 permanent staff working for the national flag carrier and paying their salaries on a regular basis will also become a challenge for Biman, said Mokabbir.

Meanwhile, sources at the Civil Aviation Authority of Bangladesh (CAAB) said the deadline of suspension of air communication may be extended even further.

Biman gets China's approval to operate Dhaka-Guangzhou flight

In a major development, Biman Bangladesh Airlines has got approval from the Chinese authorities to operate flights on Dhaka-Guangzhou route.

The national flag carrier of the country is planning to operate flights on this route from May, a top official of Biman told The Daily Star.

The Dhaka-Guangzhou route has been considered a profitable route as many Chinese and Bangladeshis are now travelling between the two countries for various purposes, including business and tourism, said the official.

China Southern Airlines and Bangladesh's leading private operator US-Bangla Airlines are currently operating flights on this route.