By I.H.Sharif :
Bangladesh’s national flag carrier, Biman Bangladesh Airlines Limited, has got the distinction of flying the world’s smallest fleet of aircraft with the world’s biggest workforce in the public sector. Even if the private sector airlines of the country are taken into consideration, Biman’s position remains unchanged, as the operator of the smallest fleet of aircraft with the largest workforce behind it-the aircraft-employee ratio remaining biggest still.
In its present fleet, Biman has four Boeing 777-300s with configuration of 419 seats (35 business class and 384 economy class) each, one 319-seated (all economy class) Airbus, two 262-seated Boeing 737-800s (112 business class and 150 economy class) each, two 319 seated (35 business class and 284 economy class) each Boeing 777-200s and two 72 seated DASH-8 aircraft.
To run this small fleet of aircraft Biman has a workforce of around 3,500 employees in the payroll -the aircraft-employee ratio being an unprofitable 1:318 (plus) which is considered to be the biggest workforce behind an aircraft in the world. To be profitable, an airliner’s optimum aircraft-employee ratio should be 1:200 or less. All the four private sector airlines in the country have economically viable aircraft-employee ratios. United Airways has eleven aircraft and to operate this fleet it has a workforce of about one thousand employees-the ratio being 1: 90 plus. Regent Airways has five aircraft in its fleet and to fly this fleet it has a workforce of about 300 employees-the aircraft employee ratio being 1:60 (having the scope of employing some more people to provide better service to passengers). NOVOAIR has three aircraft and to run this fleet it has a workforce of about 400 employees-the aircraft-employee ratio being 1: 133 (plus) and the country’s latest airliner US-BANGLA airlines has a fleet of three aircraft. To fly this fleet this airliner has a workforce of about 600 employees-the aircraft-employee ratio being 1:200– the optimum ratio for profitability and good service of an airline.
The fleets of aircraft of all the foreign airlines operating air services to and from Bangladesh are much bigger compared with Bangladeshi airlines including Biman Bangladesh airlines. Compared with Biman, the sizes of their fleets are treble, quadruple, quintuple or even bigger and their aircraft-employee ratios are much smaller for profitability.
About a decade ago, Biman management retrenched about 3,500 employees through golden handshake as per suggestion of the World Bank-thus halving the total workforce of about 7,000 employees and saving about 50 crore Taka that used to be paid to excess employees.
Following the event of retrenchment through golden handshake, there were some interesting labor court cases filed by some of the retrenched employees. Filing cases in the labor court, they argued that after retrenchment they were unable to run their families because of financial stringencies. They argued that the money they got through golden handshake retrenchment had been spent unscrupulously by their families. Some cases are still going on in the labor court.
“The amount of salary and allowances an employee of a foreign airline gets is ten times more than what we in Biman receive” said a General Manager of Biman while talking to me in the afternoon on September 3 (Thursday). It means Biman management has to pay ten times more when it employs a foreign professional. The immediate past and the present Managing Director of Biman Bangladesh Airline are British nationals. Asked why Biman management employs high salaried foreign professionals when locals could be employed at a low rate of salary and allowances, he replied, “You better ask this question to the management.”
In reply to a written question in Parliament by an MP from Rajshahi-4 constituency on September 2 (Wednesday), Civil Aviation and Tourism Minister Rashed Khan Menon said “Biman incurred a loss of Taka 11 crore 39 lakh in the domestic flights whereas in the international flights it earned a profit of Taka 233 crore five lakh in the last fiscal.”
Earlier, in reply to a question of an MP in Parliament, Rashed Khan Mentioned that Biman incurred loss of more than one lakh thirty four thousand crore Taka in five years between 2009-10 and 2013-14 fiscal years which has been mentioned in a vernacular daily on the 30th of August (Sunday) last.
Thus if an overall calculation is made, it will be seen that Biman has not been able to earn any profit even in the last fiscal year.
Like the Civial Aviation and Tourism Minister, all Biman high-ups are aware that Biman owes Civil Aviation Authority of Bangladesh (CAAB) an incredible amount of more than Taka 15 billion (1500 crore) as charges for using airports.
It is worth mentioning here that unlike Biman and two private sector airlines like United Airways and Regent Airways, foreign airlines operating air services to and from Bangladesh and two private sector Bangladeshi airlines like NOVOAIR and US-BANGLA airlines do not owe any outstanding dues of charge to CAAB.
In fact, unless more retrenchments are made or Biman’s fleet of aircraft is enlarged to bring down the aircraft: employee ratio to 1: 200 in place of the present 1: 318 plus it will never be possible for Biman to earn any profit ever.
Bangladesh’s national flag carrier, Biman Bangladesh Airlines Limited, has got the distinction of flying the world’s smallest fleet of aircraft with the world’s biggest workforce in the public sector. Even if the private sector airlines of the country are taken into consideration, Biman’s position remains unchanged, as the operator of the smallest fleet of aircraft with the largest workforce behind it-the aircraft-employee ratio remaining biggest still.
In its present fleet, Biman has four Boeing 777-300s with configuration of 419 seats (35 business class and 384 economy class) each, one 319-seated (all economy class) Airbus, two 262-seated Boeing 737-800s (112 business class and 150 economy class) each, two 319 seated (35 business class and 284 economy class) each Boeing 777-200s and two 72 seated DASH-8 aircraft.
To run this small fleet of aircraft Biman has a workforce of around 3,500 employees in the payroll -the aircraft-employee ratio being an unprofitable 1:318 (plus) which is considered to be the biggest workforce behind an aircraft in the world. To be profitable, an airliner’s optimum aircraft-employee ratio should be 1:200 or less. All the four private sector airlines in the country have economically viable aircraft-employee ratios. United Airways has eleven aircraft and to operate this fleet it has a workforce of about one thousand employees-the ratio being 1: 90 plus. Regent Airways has five aircraft in its fleet and to fly this fleet it has a workforce of about 300 employees-the aircraft employee ratio being 1:60 (having the scope of employing some more people to provide better service to passengers). NOVOAIR has three aircraft and to run this fleet it has a workforce of about 400 employees-the aircraft-employee ratio being 1: 133 (plus) and the country’s latest airliner US-BANGLA airlines has a fleet of three aircraft. To fly this fleet this airliner has a workforce of about 600 employees-the aircraft-employee ratio being 1:200– the optimum ratio for profitability and good service of an airline.
The fleets of aircraft of all the foreign airlines operating air services to and from Bangladesh are much bigger compared with Bangladeshi airlines including Biman Bangladesh airlines. Compared with Biman, the sizes of their fleets are treble, quadruple, quintuple or even bigger and their aircraft-employee ratios are much smaller for profitability.
About a decade ago, Biman management retrenched about 3,500 employees through golden handshake as per suggestion of the World Bank-thus halving the total workforce of about 7,000 employees and saving about 50 crore Taka that used to be paid to excess employees.
Following the event of retrenchment through golden handshake, there were some interesting labor court cases filed by some of the retrenched employees. Filing cases in the labor court, they argued that after retrenchment they were unable to run their families because of financial stringencies. They argued that the money they got through golden handshake retrenchment had been spent unscrupulously by their families. Some cases are still going on in the labor court.
“The amount of salary and allowances an employee of a foreign airline gets is ten times more than what we in Biman receive” said a General Manager of Biman while talking to me in the afternoon on September 3 (Thursday). It means Biman management has to pay ten times more when it employs a foreign professional. The immediate past and the present Managing Director of Biman Bangladesh Airline are British nationals. Asked why Biman management employs high salaried foreign professionals when locals could be employed at a low rate of salary and allowances, he replied, “You better ask this question to the management.”
In reply to a written question in Parliament by an MP from Rajshahi-4 constituency on September 2 (Wednesday), Civil Aviation and Tourism Minister Rashed Khan Menon said “Biman incurred a loss of Taka 11 crore 39 lakh in the domestic flights whereas in the international flights it earned a profit of Taka 233 crore five lakh in the last fiscal.”
Earlier, in reply to a question of an MP in Parliament, Rashed Khan Mentioned that Biman incurred loss of more than one lakh thirty four thousand crore Taka in five years between 2009-10 and 2013-14 fiscal years which has been mentioned in a vernacular daily on the 30th of August (Sunday) last.
Thus if an overall calculation is made, it will be seen that Biman has not been able to earn any profit even in the last fiscal year.
Like the Civial Aviation and Tourism Minister, all Biman high-ups are aware that Biman owes Civil Aviation Authority of Bangladesh (CAAB) an incredible amount of more than Taka 15 billion (1500 crore) as charges for using airports.
It is worth mentioning here that unlike Biman and two private sector airlines like United Airways and Regent Airways, foreign airlines operating air services to and from Bangladesh and two private sector Bangladeshi airlines like NOVOAIR and US-BANGLA airlines do not owe any outstanding dues of charge to CAAB.
In fact, unless more retrenchments are made or Biman’s fleet of aircraft is enlarged to bring down the aircraft: employee ratio to 1: 200 in place of the present 1: 318 plus it will never be possible for Biman to earn any profit ever.
