Biman signs $2.5b deal with Boeing for 10 aircraft: US Congressman favours duty free treatment for Bangladeshi products

Biman Bangladesh Airlines Ltd on Wednesday signed the final deal with US aircraft manufacturing company Boeing to procure 10 new generation aircraft--four 777-300ER, four 787-8 and two 737s at a cost of 2.5 billion dollars (Tk 17,250 crore).

The deal signed at the US Department of Commerce in Washington DC also included an option of buying six more planes--two 777-300ER, two 787-8 and two 737s.

This is the first time Biman independently decided to buy aircraft without any political and government interference since its birth in 1972. Biman became a public limited company in July last year.

Mahbub Jamil, Special Assistant to the Chief Adviser and Chairman of Biman Board of Directors, and Dr MA Momen, Managing Director and Chief Executive Officer of Biman, signed the agreement on behalf of the Biman while Senior Vice President (Sales) Marty Bentrott signed the agreement on behalf of the Boeing.

The deal includes a $320 million deal for the purchase of two Boeing 737-800 aircraft, plus purchase rights for two additional 737s.

The agreement is the part of a total deal of $2.5 billion for the purchase of four 787, four 777 and four 737 aircrafts to be supplied to Biman by the Boeing company.

During the signing ceremony of the deal, US Congressman James McDermott (D-WA) called for ending of unfair duty treatment on the products from least developed countries like Bangladesh.

Congressman McDermott, who sponsored the bill 'New Partnership for Development

Act' (NPDA) (HR 3905) in the US Congress proposing duty free entry of all products from all least developed countries including Bangladesh, congratulated Biman for this historic deal and assured of his best possible effort for the passage of NPDA.

The Congressman also expressed his deep satisfaction, as this bill will be of immense benefit to the people of his constituency in Seattle.

Mahbub Jamil termed this deal as 'new era' in the aviation history of Bangladesh and hoped that this business deal will work as a strong pillar of friendship between Bangladesh and USA.

Donald Camp, Principal Deputy Assistant Secretary of the Department of State termed this business deal as an evidence of potential of the growing economy of Bangladesh and stated that this deal will go a long way to further strengthening commercial relations between the two countries. Sharing his optimism of a democratic Bangladesh, Mr. Camp commented that the 'people of Bangladesh look forward to the forthcoming general election in Bangladesh by December 2008, where 80 million Bangladeshi citizens are expected to exercise their franchise in order to install a new democratic government'.

Terming the aircraft 787 as composite dream machine, Dr MA Momen, Managing Director and CEO of Biman Bangladesh Airlines stated that the deal with Boeing Company is a milestone in the history of Biman and termed this as a 're-birth of Bangladesh Biman' today.

US Under Secretary for International Trade Christopher A Padilla, who welcomed the guests in the ceremony, congratulated Biman and the Boeing Company for this historic deal.

He further stated that this deal has been possible due to 'creative restructuring and visionary changes' made by the Government of Bangladesh in the management of Biman Bangladesh Airlines.

The ceremony was attended by good number of business people from USA and Bangladesh, members of the media, congressional aides, members of think tanks, high officials from Department of State, Department of Commerce, Federal Aviation Administration, US Trade and development Agency, Department of Transportation and a cross section of the members of Bangladesh's expatriate community.

Sheikh Mohammed Belal, Chargé d'affaires of Bangladesh Embassy in Washington DC and other high officials of the embassy were also present during the occasion.

It may be noted that Ambassador M. Humayun Kabir could not be at the ceremony as he is presently in Bogota, Colombia in connection with the presentation of his credential to the Colombian President as concurrent Bangladesh Ambassador to Colombia