Biman Bangladesh Airlines Must Strengthen Its Boeing Partnership and Develop Indigenous MRO Capabilities

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Biman Bangladesh Airlines, the national flag carrier, is once again at a strategic crossroads. The recent European proposal to modernise Biman’s fleet with Airbus passenger aircraft—supported by the European Union and the embassies of France, Germany, and the United Kingdom—has reignited debate over the airline’s long-term fleet strategy, industrial alignment, and strategic orientation.

During a high-profile event held in Dhaka on 3 November 2025, European representatives formally proposed the sale of a range of Airbus passenger aircraft, accompanied by offers of credit facilities, technology transfer, and industrial cooperation. The pitch represents part of a broader European effort to expand its aerospace footprint in South Asia and to counterbalance the dominant U.S. and Boeing presence in the region.

While such a proposal is both timely and economically attractive, Bangladesh’s aviation policy decisions must be guided by strategic foresight, national capability development, and balance in external trade relations—rather than short-term convenience or political inclination.

Current Fleet Composition and Modernisation Context

Biman Bangladesh Airlines currently operates a mixed fleet of Boeing aircraft, primarily consisting of 787 Dreamliners, 777-300ERs, and 737-800s, supported by a small number of Dash-8 Q400 turboprops for domestic and regional routes. The 787-8 and 787-9 Dreamliners—inducted under the Vision 2021 fleet modernisation programme—remain the backbone of Biman’s long-haul operations, connecting Dhaka with key destinations such as London, Jeddah, Toronto, and Kuala Lumpur. The airline’s operational fleet as of late 2025 comprises approximately 21 aircraft, including four Boeing 787-8 Dreamliners, two Boeing 787-9 Dreamliners, four Boeing 777-300ERs, six Boeing 737-800s, and five De Havilland Dash-8 Q400s.

While the Boeing wide-bodies offer superior performance and fuel efficiency for intercontinental routes, the 737-800s have served the regional and short-haul network reliably. Over the past decade, Biman’s fleet strategy has tilted heavily towards Boeing platforms, reflecting both operational familiarity and a strategic partnership between Dhaka and Washington. This alignment has been instrumental in enabling Biman to expand long-haul connectivity while standardising maintenance, training, and operational logistics around Boeing systems.

The U.S. Connection and Trade Balance Considerations

Bangladesh’s government has already announced its intention to purchase 25 Boeing passenger aircraft from the United States as part of a broader effort to reduce the trade deficit between the two nations. The order would represent one of the largest commercial aerospace transactions in South Asia in recent years and a major gesture of goodwill towards Washington—Bangladesh’s largest single-country export destination, accounting for roughly 20 percent of its total exports, primarily in garments and textiles.

Such a purchase would not only bolster bilateral trade balance but also deepen Bangladesh’s economic and technological engagement with U.S. industries. Moreover, it would serve a broader diplomatic purpose—demonstrating Dhaka’s strategic intent to preserve balanced relations between the United States and major European powers amid intensifying global competition in the aviation and defence sectors.

However, Boeing currently faces production bottlenecks and an order backlog extending well into the late 2020s. The company’s manufacturing lines for both the 737 MAX and 787 Dreamliner remain under heavy demand following the post-pandemic recovery. Consequently, even if Bangladesh finalises the purchase, immediate delivery of all 25 aircraft is unlikely.

A Pragmatic Path Forward: Limited Deliveries, Long-Term Capability

In light of these realities, Biman should adopt a dual-track approach. The airline can proceed with limited deliveries in the short term while simultaneously initiating a long-term programme to develop domestic Maintenance, Repair and Overhaul (MRO) capacity and aerospace manufacturing infrastructure.

Establishing an FAA and Boeing-certified MRO facility in Bangladesh would transform the country’s aviation sector. Such a facility would not only maintain and overhaul Biman’s growing fleet but could also attract regional carriers from South and Southeast Asia seeking cost-effective, high-quality maintenance services.

This concept is not new. Al-Salam Aircraft Company of Saudi Arabia previously proposed a $5 billion investment to establish a comprehensive MRO complex in Lalmonirhat, utilising the infrastructure of what was once the second-largest airbase in Asia. Although the proposal did not materialise, its strategic logic remains sound. Lalmonirhat’s geographic position, existing runways, and logistical accessibility make it ideally suited for a large-scale aviation industrial complex.

Revisiting this idea—potentially under a Boeing–Bangladesh joint venture model—could enable the creation of a self-sustaining aviation ecosystem encompassing maintenance, component manufacturing, and technical training.

Economic and Industrial Benefits

The economic and industrial benefits of such an initiative would be wide-ranging and transformative. A Boeing-certified MRO facility would generate thousands of skilled and semi-skilled jobs across engineering, avionics, materials management, and logistics disciplines, thereby fostering a new generation of Bangladeshi aviation professionals. Retaining heavy maintenance and component overhauling within Bangladesh would also save tens of millions of dollars annually in foreign exchange that Biman currently spends sending its aircraft abroad for scheduled overhauls.

Beyond direct cost savings, a domestic MRO capability would position Bangladesh as a regional aviation maintenance hub, servicing aircraft from neighbouring countries such as Nepal, Bhutan, Myanmar, and even parts of eastern India. Given Bangladesh’s cost competitiveness and emerging industrial infrastructure, this positioning could rapidly evolve into a lucrative export service sector. Simultaneously, investment in spare parts and component manufacturing could integrate Bangladesh into the global aerospace supply chain, allowing local industries to manufacture certified components under Boeing’s supervision and quality standards.

The establishment of such capabilities would also have a diplomatic dimension. Long-term industrial cooperation with Boeing would reinforce Bangladesh’s strategic and economic alignment with the United States, complementing existing trade relations in textiles, pharmaceuticals, and ICT. By combining industrial growth with strategic engagement, Bangladesh could secure both economic leverage and geopolitical goodwill in an increasingly competitive global aviation market.

The Broader Aviation Growth Outlook

Bangladesh’s civil aviation sector is poised for remarkable expansion over the next two decades. According to projections by the Civil Aviation Authority of Bangladesh (CAAB), national passenger traffic is expected to triple by 2040, driven by rising disposable income, increased expatriate movement, and expanding connectivity with the Middle East and Southeast Asia.

The newly inaugurated third terminal at Hazrat Shahjalal International Airport, capable of handling up to 20 million passengers annually, symbolises Dhaka’s ambition to emerge as a major regional hub. Complementary upgrades in Chattogram, Sylhet, and Cox’s Bazar will further enhance capacity to support tourism and regional trade.

Given this growth trajectory, Biman’s fleet expansion is both necessary and inevitable. Yet quantity alone will not ensure progress. The airline must address systemic inefficiencies, governance failures, and management opacity that have long hindered its ability to perform competitively against regional peers.

Institutional Challenges and Governance Issues

Despite successive modernisation efforts, Biman continues to suffer from entrenched cronyism, bureaucratic interference, and mismanagement. Procurement decisions often reflect short-term political calculations rather than sound business judgment. Without substantial reform, even the most advanced aircraft or facilities will fail to deliver meaningful progress.

The airline must therefore adopt corporate governance frameworks aligned with international standards—ensuring transparency, merit-based appointments, independent audit mechanisms, and data-driven operational planning. Only through structural integrity can Biman realistically transform into a commercially viable and globally competitive carrier.

Strategic Alignment and Policy Coherence

Bangladesh’s broader aviation and industrial strategy must seek to synchronise national capability development with international partnerships. Boeing’s collaboration could extend well beyond Biman, aligning with the Lalmonirhat Aerospace and Aviation Zone proposed by the Bangladesh Economic Zones Authority (BEZA). This would facilitate the creation of a complete aerospace cluster encompassing pilot and technician training, composite materials production, avionics servicing, and drone research and development.

Moreover, integrating civil aviation industrialisation with Bangladesh’s Defence Industrial Development Policy could yield valuable synergies—especially in maintenance training, precision manufacturing, and logistics support, which are equally relevant to military aviation.

Assessment

Bangladesh’s aviation future depends not only on acquiring new aircraft but also on developing a sustainable domestic capability base. The government’s plan to purchase 25 Boeing aircraft represents more than a commercial transaction—it is an opportunity to anchor a long-term framework of trade, technology transfer, and industrial cooperation with the United States.

While Boeing’s full order book may delay immediate deliveries, this interval provides a crucial window for Bangladesh to build MRO, supply chain, and training infrastructure that will secure long-term self-reliance. If implemented strategically, this initiative could elevate Bangladesh from a mere aviation consumer to an emerging aerospace industry participant, capable of servicing, manufacturing, and eventually designing aircraft components within its own borders.

However, the transformation will require bold leadership, transparent governance, and institutional discipline. Without addressing Biman’s internal inefficiencies, no amount of foreign cooperation will yield sustainable progress. But with the right reforms, Bangladesh stands poised to evolve into a regional aviation powerhouse—bridging the East–West air corridor, deepening economic ties with the United States, and nurturing a modern aerospace ecosystem supporting both civil and defence aspirations.