Bangladesh Biman will two aircraft next year

Two new Boeing aircraft will join Biman fleet next year, as most of the planes of the national carrier are more than 15 years old and reaching the end of their economic life. A meeting of the cabinet committee on economic affairs yesterday approved a proposal for giving Biman Bangladesh Airlines the sovereign guarantee to take loans from local banks for purchasing the airliners. Finance Minister AMA Muhith chaired the meeting. In line with an agreement with US-based Boeing Company, an aircraft will join Biman fleet in November 2011 , while another plane will be added in December the same year, Civil Aviation and Tourism Secretary Shafique Alam Mehedi told The Daily Star yesterday. A syndicate of nine local banks will give Biman a loan of $ 114.75 million for purchasing the two aircraft from Boeing. This is for the first time after the country's independence that local banks are giving such a big amount of loan to a government entity in foreign currency. The national flag carrier is taking the loan from the local banks' syndicate led by Eastern Bank Ltd at a low interest rate of 4.57 percent. The civil aviation and tourism ministry had earlier sought approval of the cabinet committee on economic affairs for waiving the conditions of Public Procurement Act for the pre-delivery payment to Boeing. The ministry also sought waiver of the suppliers' credit rules for taking commercial loans in foreign currency. Biman signed the agreement with Boeing in 2008 to purchase 10 aircraft for $1.31 billion to strengthen its fleet. In line with the agreement, Biman has already paid Boeing $11.96 million for buying the planes. Boeing is supposed to supply the two aircraft in 2011 for $424 million. The syndicate of the local banks also includes BRAC Bank, National Bank, IFIC Bank, The City Bank, AB Bank, Prime Bank, Premier Bank and Citibank NA. Biman has eight aircraft in its fleet -- four DC- s, two Airbus and two F-28 s. Of those, two have been taken on lease.