TDS Desk:

As Bangladesh has planned to purchase 25 Boeing aircraft as part of a strategic move to persuade US to lower tariffs on the country, aviation experts have urged the government to prioritise economic and operational viability of the big purchase.

They find it as a government strategy to deal with the US pressure by deepening commercial ties with Washington as the US is set to impose a 35% tariff on Bangladesh’s export items from August 1.

“We have included Boeing aircraft in the list of products to purchase to reduce the trade deficit with the US. We plan to acquire 25 aircraft from Boeing, and the deal will be implemented gradually,” Commerce Secretary Mahbubur Rahman.

He said recent agreements to purchase wheat from the US have been concluded while talks to buy soybean and cotton are at the final stage.

Priority will also be given to acquiring military equipment from the US, he added.

Aviation experts, however, have warned against hasty procurement without assessing route viability and demand.

“Buying planes purely for diplomatic reasons without considering passenger flow or route viability could become a financial burden for the national carrier,” said ATM Nazrul Islam, a retired Wing Commander and aviation analyst.

Nazrul Islam added that ideally the airline itself should initiate such plans to ensure alignment with route planning and operational needs.

He also warned against relying solely on Boeing pointing out that leading global airlines operate both Boeing and Airbus fleets.

Ignoring alternatives may be risky, he added.

Nazrul Islam said the government is using the aircraft purchase plan as a “trade negotiation tool” to counter the US tariff hike.

Another aviation analyst and former Biman board member Kazi Wahidul Alam said the government’s announcement signals interest rather than a finalised deal.

“Biman does face an aircraft shortage, so the purchase could be done gradually based on 10-15 years’ demand,” he added.

Alam said aircraft model selection, routes and procurement methods must align with the airline’s strategic plans.

Purchasing from a single manufacturer warrants careful assessment of competitive pricing as buying from both Boeing and Airbus might yield better deals, he added.

The estimated cost of buying 25 Boeing aircraft could be around six billion US dollars.

Bangladesh Biman currently operates 19 aircraft, including 14 Boeing planes from the US and five Canadian-made Dash-8 Q400 turboprops.

The Boeing fleet consists of four 737-800, four 777-300ER, four 787-8 Dreamliners and two 787-9 Dreamliners.

Biman sources said Boeing recently offered 14 advanced aircraft models, including the 787-10 Dreamliner, for Bangladesh’s consideration.

Biman’s techno-finance committee is analysing the proposal taking into account routes, revenue, and passenger traffic.

Biman officials said they have not yet finalised any deal with Boeing or Airbus.

As Boeing’s proposal is under review and if the government decides on a diplomatic basis, the airline will carry out implementation.

In 2023, the previous government signed a Memorandum of Understanding with France to buy 10 Airbus aircraft with initial plans to acquire two A350 models.

Later, Boeing offered at least two 787 Dreamliners.

Meanwhile, a Bangladesh trade delegation is holding its third round of talks in Washington to negotiate the tariff issue with the US.

Bangladesh officials are still hopeful that the US may reduce the tariff to 18-20 percent or lower through dialogue.

The US administration has already indicated discussions on tariffs for Indonesia (19 percent) and India (20 percent), and also Bangladesh expects a similarly negotiated tariff rate.