Government eyes 10 Airbus jets after taking Boeing orders to 25

The government expects to move towards an agreement next month to purchase 10 Airbus aircraft for Biman Bangladesh Airlines, days after the national flag carrier placed an order for 11 more Boeing jets, Civil Aviation and Tourism Minister M Rashiduzzaman Millat said on Tuesday.

Speaking to journalists at the Secretariat, Millat said the proposed Airbus purchase would be in addition to 25 Boeing aircraft now covered by two agreements signed this year.

If the Airbus deal goes ahead, Biman would have 35 new aircraft in its acquisition pipeline — a fleet expansion considerably larger than the airline’s current operational capacity.

Biman presently has 19 aircraft, according to the minister. Two are almost grounded, leaving the airline effectively operating 17 planes.

The latest expansion follows Biman's supplementary agreement with Boeing in New York last week for 11 aircraft — five Boeing 787-10 Dreamliners and six 737-8 jets.

That agreement was signed on the sidelines of the 81st United Nations General Assembly and followed Biman's $3.7 billion purchase agreement with Boeing in April for 14 aircraft.

The April order comprises eight Boeing 787-10s, two 787-9s and four 737-8s. The latest order therefore takes Biman's planned Boeing acquisitions to 25 aircraft: 15 wide-body Dreamliners and 10 narrow-body 737-8s.

The first batch is scheduled for delivery between 2031 and 2035, although the government is seeking earlier delivery of at least one aircraft.

“These aircraft will not arrive in the country all at once,” Millat told reporters. “We have requested that at least one aircraft be delivered in 2027 or 2028.”

He said Biman would not have to pay the entire purchase price upfront and would seek to service aircraft costs from revenue generated after the planes enter commercial operation.

Airbus remains in the plan

The proposed Airbus package would add another manufacturer to Biman's future fleet.

Airbus submitted a revised proposal earlier this year for four A350-900 wide-body aircraft and six A321neo narrow-body jets. Biman's techno-finance committee has been evaluating the proposal.

The European manufacturer had earlier pursued a larger aircraft package before revising the proposal to 10 planes following Biman's first Boeing order.

French Ambassador to Bangladesh Jean-Marc Séré-Charlet said last week that negotiations over the Airbus purchase remained underway. He said Biman's consideration of Airbus was based on technical factors rather than politics and called for a level playing field for European companies competing for business in Bangladesh.

The competition between the two manufacturers has nevertheless acquired a diplomatic dimension.

The previous Awami League government had announced a policy decision to purchase Airbus aircraft, but Biman subsequently moved towards Boeing following the political transition and renewed negotiations with the United States.

The government has maintained that it intends to buy aircraft from both manufacturers. State Minister for Foreign Affairs Shama Obaed Islam said in July that Bangladesh needed both Boeing and Airbus as part of a sustainable mixed-fleet strategy.

The Boeing purchases have also formed part of broader Bangladesh-US economic engagement.

Reuters reported ahead of the latest Boeing agreement that Dhaka's additional aircraft purchase was being pursued as Bangladesh sought closer trade relations with Washington amid negotiations over US tariffs affecting its export-oriented economy.

US Ambassador Brent Christensen described the latest Boeing agreement as a “win-win” for Bangladesh-US relations.

The New York signing was attended by senior officials from both countries, including US Commerce Secretary Howard Lutnick and Deputy Secretary of State Christopher Landau.

Fleet shortage before new aircraft arrive

The immediate problem for Biman is that most of the new aircraft will not arrive for several years.

Millat said a significant portion of the existing fleet would also age considerably over the next decade, making fleet renewal necessary alongside expansion.

The government has therefore moved to lease at least 10 aircraft as an interim measure.

A committee headed by the finance secretary has been formed to accelerate the leasing process, according to the minister, who said the procurement would be conducted transparently.

Biman's existing fleet is centred on Boeing aircraft alongside Dash 8 turboprops. Its fleet has included Boeing 787-8 and 787-9 Dreamliners, Boeing 777-300ERs, Boeing 737-800s and Dash 8-Q400 aircraft.

The airline's expansion plan is aimed partly at increasing its share of Bangladesh's rapidly growing international aviation market.

Millat said foreign airlines carry the overwhelming majority of passengers travelling to and from Bangladesh, while Biman accounts for only around 20%.

A larger fleet, he said, would allow the carrier to increase frequencies on existing routes and open additional international destinations.

Airports also being expanded

The aircraft purchases come alongside a broader government programme to expand Bangladesh's aviation infrastructure.

The Ministry of Civil Aviation and Tourism has been allocated 1,884 crore taka in the FY2026-27 budget, up from the revised allocation of 1,300 crore taka for the previous fiscal year.

The government has also outlined plans for a national air-connectivity grid, with Dhaka, Chattogram and Sylhet being developed as integrated passenger and logistics hubs. Rajshahi, Cox's Bazar, Jashore and Saidpur are also earmarked for development as international gateways.

The largest aviation infrastructure project remains the third terminal at Hazrat Shahjalal International Airport in Dhaka, which is still being prepared for full commercial operation.

The terminal is expected to substantially expand the country's main international gateway. Government and airport estimates have put the additional passenger-handling capacity at roughly 12 million or more passengers annually, while cargo-handling capacity will also increase substantially.

The government has previously said it aims to bring the third terminal into full operation around the end of 2026.

Hazrat Shahjalal International Airport already handles more than 12 million passengers a year and serves more than 40 airlines connecting Bangladesh with over 60 destinations, according to airport data.

The expansion of airport infrastructure and Biman's fleet are therefore moving on parallel tracks: one increasing the physical capacity to handle passengers and cargo, the other seeking to increase the national carrier's ability to compete for that traffic.

The government's FY2026-27 budget strategy also calls for modernising passenger services, strengthening cargo-management systems, improving aviation safety and expanding digital services.

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