Biman Bangladesh nears completion of dramatic fleet renewal, but its outlook remains challenging

Biman Bangladesh Airlines has significantly improved its position as it nears the finishing line in its long overdue fleet renewal programme. But the carrier continues to face several challenges and will need network and strategic adjustments if it is to complete a turnaround.

Biman added four 777s in 1Q2014, allowing it finally to phase out its ageing DC-10 fleet. The flag carrier plans to complete the renewal of its fleet in 2015 as it takes two new 737-800s, enabling the phase out of its ageing A310 fleet.

Biman is now looking at potentially leasing two more 777s in 2015, which would be used to launch services to New York. Sydney is also under consideration but network adjustments including the possible suspension of Frankfurt would be necessary. Biman will also need to leverage its improved product to boost yields and attract partners.