Biman to suspend Dhaka-Narita flight amid losses
- Biman cites Hajj operations, aircraft shortage, financial loss
- Airline incurred over Tk 84cr loss on the route
- Around Tk 4cr lost each month since resumption
- Flights often operated with nearly half the seats empty
Amid much fanfare, Biman Bangladesh Airlines resumed flights to Japan's Narita in September 2023.
Within 21 months of restarting the much-anticipated service, Biman yesterday announced the suspension of operations on this route, effective from July 1.
For all latest news, follow The Daily Star's Google News channel. The national flag carrier said the decision was based on three factors: the ongoing hajj operations, shortage of aircraft in its fleet, and financial viability of the route.
However, insiders said the airline was compelled to take the decision as it has been incurring heavy losses since resuming the service.
Officials told The Daily Star that Biman has so far incurred losses of over Tk 84 crore on the route, averaging around Tk 4 crore per month.
Biman had first launched flights on the Dhaka-Narita route in 1979. After a temporary suspension in 1981, the service was resumed, but it was again suspended in 2006 due to continuous losses.
Seventeen years later, on September 1, 2023, the route was reopened without a proper assessment of its commercial viability.
Since then, the relevant departments at Biman have reviewed passenger numbers, revenue, and operational costs.
Several officials, seeking anonymity, said the key figures behind the resumption of the Narita flight were then managing director Shafiul Azim and then acting director (sales and marketing) Salauddin Ahmed.
At the time, tensions were ongoing between the then Sheikh Hasina government and the United States. Biman's fleet primarily relies on Boeing aircraft, manufactured in the US.
During that period, European aircraft manufacturer Airbus offered to sell planes to Biman. Salman F Rahman, who is now behind bars and was then the PM's adviser, reportedly supported the Airbus proposal.
In this context, Biman launched flights to destinations such as Narita, Rome, and Toronto, without assessing commercial viability, in what officials said was an attempt to justify the purchase of new aircraft.
The move was promoted as an achievement of the then Sheikh Hasina government.
Biman operates the Narita route with Boeing 787-800 aircraft, which have 271 seats. Insiders said nearly half the seats remained vacant on most flights.
Data from Hazrat Shahjalal International Airport shows that Biman is the only carrier offering direct flights between Dhaka and Narita. Eight other airlines operate connecting flights on the route via third countries.
Asked about the suspension, Biman spokesperson ABM Raoshan Kabir said the airline had been incurring losses on the route.
"Biman suspended operating this flight due to poor cabin factor," said Raoshan, who is also general manager (public relations) of Biman.
In aviation, cabin factor or load factor is a key metric that reflects how efficiently an airline fills available seats on its flights.
Contacted last night, Shafiul Azim, who was made secretary to the Election Commission while serving as Biman MD and CEO in May 2024 and is now an OSD, said the allegation of not assessing financial viability was baseless.
"We had further plans centring the Narita flight. We had plans to go to Los Angeles and Vancouver through code-sharing agreements with All Nippon and Canadian airlines," he said.
In aviation, code-sharing is an arrangement where one airline sells seats on a flight operated by another carrier under its own flight number and code, allowing airlines to expand their route networks.
"We resumed the Narita flight with the approval of the then Biman Board," he added.
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