Taskforce recommends splitting ‘inefficient’ Biman Bangladesh in two

“Other airlines in Bangladesh are profitable—why is Biman in such distress?” Advisor Wahiduddin questions

Labelling Biman Bangladesh Airlines an “inefficient” organisation, Planning Advisor Wahiduddin Mahmud has indicated that proposals to bring in foreign management or entities to manage the state-owned airline to turn it commercially profitable are now under consideration.

At a press conference on Monday, held at the National Economic Council, or NEC, conference room in Dhaka’s Sher-e-Bangla Nagar, the government’s taskforce on economic strategy reform suggested splitting Biman into two divisions—one of which would be managed by a foreign company.

Wahiduddin emphasised the urgency of the matter and said: “If we need to act quickly and demonstrate results, we must address Biman, which is consistently loss-making. This situation cannot continue.”

He questioned, “Other airlines in Bangladesh are making significant profits. Why is Biman struggling so severely?”

According to the advisor, the interim government has been considering appointing a foreign managing director to turn Biman into a profitable entity within a short timeframe.

“We must take action and see results. The goal is to transform Biman into a modern, commercially viable airline.”

Wahiduddin stressed the need for structural reforms in Biman, recommending that half of its assets, workforce, and fleet be placed under foreign management to improve efficiency and profitability.

At the press conference, he highlighted a significant proposal: “Biman’s current state demands urgent intervention. A well-thought-out recommendation suggests splitting its resources in half, with one section fully managed by foreign professionals.”

Addressing the longstanding practice of appointing Air Force officials as Biman’s top executives, he remarked: “There is a persistent misconception that the airline must be led by someone from the Air Force. But Biman is a commercial entity—an industry in itself. It is not about flying or operating fighter jets; this is a specialised business requiring deep expertise, which is currently lacking in our country.”

He reiterated the importance of hiring a foreign managing director and restructuring operations to ensure profitability.

Wahiduddin also praised the taskforce’s recommendation, calling it a “very strong and well-founded proposal”.

An economist, Wahiduddin suggested: “Biman’s vested interest groups may resist change, so splitting the airline into two—one managed by foreign professionals—would reveal inefficiencies.”

The government’s economic strategy taskforce has proposed a significant restructuring of the flag carrier, recommending that half of its operations be handed over to a foreign airline—potentially Singapore Airlines or Qatar Airways—while the other half remains under local management.

Explaining the rationale behind the proposal, the planning advisor said: “Rather than battling vested interest groups, it would be more effective to divide Biman and allow a foreign entity to manage one half. The other half would continue as Bangladesh Biman.

“This would provide a direct comparison of performance with identical resources, exposing weaknesses and inefficiencies.”

He called it a “strong and practical proposal” that could be integrated into existing reform plans, though he was uncertain about its feasibility within a short timeframe.

PROPOSAL FOR EXTERNAL OVERSIGHT OF NBR

The taskforce also recommended forming an External Oversight Committee to enhance the efficiency and fairness of the National Board of Revenue, or NBR.

The committee would consist of representatives from the private sector, civil society, and government, with a mandate to evaluate NBR policies, reduce discriminatory regulations, and advise the chief advisor on tax reforms.

The taskforce report on equitable and sustainable economic development has been officially submitted to Chief Advisor Muhammad Yunus. Planning Advisor Wahiduddin handed over the report on Thursday.

The interim government, formed following the civil uprising that led to Sheikh Hasina’s overthrow, has prioritised structural reforms to build a more equitable Bangladesh.

As part of these efforts, a taskforce to redefine economic strategies for equitable, sustainable development and secure necessary resources was established on Sept 10 to guide sustainable economic development.

The 12-strong taskforce is chaired by KAS Murshid, former director general of the Bangladesh Institute of Development Studies, or BIDS, with Md Kausar Ahmed, member of the General Economics Division at the Planning Commission, serving as Member Secretary.