Corporate affairs Biman Bangladesh Airlines

1 corporate affairs

1.1 key people
1.2 ownership
1.3 privatisation

1.3.1 1980s
1.3.2 1990s
1.3.3 2000s
1.3.4 public limited company
1.3.5 2010s


1.4 subsidiaries

corporate affairs
key people

a biman bangladesh airlines boeing 777-300er on short final london heathrow airport in 2013.

as of june 2016, chairman position held air mshl muhammad enamul bari; a. m. mosaddique ahmed managing director (md) , chief executive officer (ceo).

kevin john steele, served md , ceo of biman march 2013 april 2014, first foreign national in airline s history appointed ceo , md of biman. chosen pool of 42 local , foreign candidates after competitive selection process. steele british citizen has many years of experience working in management , administrative positions @ british airways , other airlines around world. steele resigned biman s md , ceo positions in december 2013 (2013-12) citing health issues. steele left office on 19 april 2014 (2014-04-19). kyle haywood took office biman s md , ceo on 5 january 2015 (2015-01-05). british national, haywood second foreign national hold airline s ceo position after kevin steele.

ownership

the airline wholly owned bangladeshi government through bangladesh biman corporation since inception. in 1977, biman converted public sector corporation afforded biman limited autonomy, led government-appointed board of directors. authorised share capital increased bdt 2 billion in 1987, , biman transformed public limited company, largest in bangladesh, in 2007.

privatisation
1980s

during late 1980s, hossain mohammad ershad, president of bangladesh @ time, served president of biman. after period of expansion , growth, biman entered era of nose-diving profits , slow growth, exacerbated incompetent , corrupt management, padded purchases, falsified repair bills, , kept unprofitable routes in operation political reasons. research conducted in 1996 found biman had 5,253 non-flying personnel, 30 percent more singapore airlines, carrier operated fleet ten times size of biman s. report described biman poorly managed, overstaffed, undercapitalized, , subject excessive political interference in day-to-day management.

1990s

biman bangladesh airlines f28-4000 fellowship @ bangkok-don mueang airport in 1995. biman received first aircraft of type in 1981.

in 1992–93 fiscal year, accounts under ministry of civil aviation , tourism revealed bdt 22 million in tax not paid government. audit carried out in 1999, showed biman owed bdt 2.2 million travel agents proceeds of ticket sales, collusion of biman officials. additionally, bdt 2.4 million overpaid incentive commissions sales agents in violation of biman policies. in 2007, caretaker government launched anti-corruption drive. shortly followed forced retirement of 35 other employees , officials, of whom close aides of shamim iskander. in 2008 iskander, younger brother of former premier khaleda zia, sent jail on charges of concealing information regarding wealth , not connection biman.

faced growing losses late 1990s onwards, government offered 40 percent of biman foreign airlines in 2004, hoping buyer take on management of carrier. however, proposal demanded many decision-making rights remain within bangladesh government, , offer ignored outside airlines. similar initiative in 1998 cost biman $1.6 million in consultancy fees no positive results.

2000s

in 2005–06 fiscal year, biman carried 1.15 million passengers, growth of 70% on previous decade. rise of private domestic carriers in bangladesh, however, biman s market share domestic passengers dropped 35% on previous ten years average, 162,000 passengers travelling biman in domestic sector in 2005–06 fiscal year. during same period, biman reported biggest annual loss of on us$120 million (bdt 8.3 billion of 2010), us$100 million (bdt 6.9 billion of 2010) loss reported following year. biman fell behind on millions of dollars in payments fuel supplier, bangladesh petroleum corporation (bpc), debts rose bdt 15.64 billion in late december 2006 (2006-12).

public limited company

in may 2007 (2007-05), caretaker government approved plans turn biman public limited company shareholdings split between 7 public sector organisations. part of restructuring, government put in place voluntary retirement scheme (vrs) reduce man-equipment ratio (mer) of 367:1 (ratio of manpower aircraft). industry average @ time 200:1, , other asian airlines operated mers of 150:1. vrs provided compensation based on length of service, @ cost government of on bdt 2.97 billion borrowed world bank. biman management expected reduce workforce 1,600, 2,162 applications received, many employees expected dismissed little or no severance pay if quota not met. biman accepted between 1,863 , 1877 applications, , affirmed key personnel not allowed leave organisation via vrs.

on 23 july 2007, biman bangladesh airlines became largest public limited company in bangladesh. earlier suggestions airline should renamed bangladesh airlines rejected. government sole shareholder of 1.5 billion shares, intends offer 49 percent private sector while retaining majority ownership. previous managing director, dr. abdul momen, appointed chief executive officer (ceo) , managing director of new organisation. 6 directors appointed ministries of energy, commerce, finance, civil aviation, foreign affairs, , cabinet division, cabinet secretary taking on role chairman of board of directors. 6 secretaries , joint secretary civil aviation ministry made 7 shareholders of new plc. in september 2008 (2008-09), government appointed air commodore zahed kuddus (retd) replace dr. momen ceo. 2002 2005 kuddus had been chair of civil aviation authority of bangladesh (caab), before had held various posts in bangladesh air force.

following privatisation, initiative launched ex-biman employees, left organisation via vrs, set competing airline. names proposed airline included air bangla international, biman employees airlines , balaka. joined previous managing directors of biman, along former president of bangladesh airline pilots association. however, nothing further heard of regarding proposed venture.

the airline made profits in fy 2007–08 (bdt 60 million) , fy 2008–09 (bdt 150 million); in fy 2009–10, however, carrier incurred in net loss of bdt 800 million.

2010s

in fy 2010–11 made losses of bdt 2 billion, despite government exempting debt of bdt 11.94 billion , bdt 5.73 billion owed bpc , caab, respectively. in fy 2011–12 made loss of bdt 6.06 billion (us$75 million); in fy 2012–13 unaudited figures show loss of bdt 2 billion. airline plans profitable fy 2014–15. of december 2013, biman owed bdt 15.60 billion different sources; of bdt 3676.2 million caab , bdt 8.50 billion padma oil company, fuel supplier. biman made profit of bdt 2.72 billion in fy 2014–15.

subsidiaries

biman s subsidiaries associated aircraft ground handling, aviation engineering, aviation training , flight catering. there 5 wholly owned subsidiaries, including:

since 1972, bgh provides ground-handling services airports in bangladesh; company reported profit of bdt 4.5 billion fy 2011–12. wholly owned subsidiary bfcc set in 1989 provide in-flight meals. 1 of biman s profitable operations, supplying food saudia, etihad, malaysia airlines, thai airways, emirates, dragon air, china southern airlines , regent airways, along casual orders other airlines operating bangladesh. bfcc consumes 90% of eggs , chickens bpc, profit-making subsidiary of biman formed in 1976 , put operation in november 1980 rear poultry @ farms in dhaka. bird flu detected @ 1 of farms in march 2007, , many of birds culled. first incident of bird flu in bangladesh.