EU Raises Transparency Concerns Over Aircraft Deal

The European Union has raised concerns over the transparency of Biman Bangladesh Airlines’ aircraft procurement process, while the national carrier insists its decision to purchase Boeing aircraft followed a fair and transparent evaluation.

In a letter sent last Wednesday to the Ministry of Civil Aviation and Tourism, Biman Managing Director and CEO Kaiser Sohail Ahmed said the airline had adhered to a competitive and transparent assessment process in selecting Boeing.

The issue surfaced during a meeting last month between Bangladesh and the European Union on resolving non-tariff barriers (NTBs) to trade. According to the meeting minutes, chaired by the Commerce Adviser to promote trade and investment, the EU requested Bangladesh to ensure a fair and transparent evaluation of technical and commercial proposals submitted by both Boeing and Airbus.

In response, Biman said proposals from both manufacturers were evaluated by a Techno-Financial Evaluation Committee (TEC), comprising subject matter experts and representatives from external organizations.

The airline said the evaluation process complied with directives from the Ministry of Civil Aviation and Tourism, recommendations of the Bangladesh Public Procurement Authority, and Biman’s own procurement policy and delegation of financial authority. The framework was approved at the airline's 324th board meeting on Dec. 30, 2025.

According to Biman, negotiations were conducted by a committee formed under the previous interim government. The final agreement then underwent legal vetting by law firm Syed Ishtiaq Ahmed & Associates (SIAA), while the Attorney General’s opinion was also obtained before the current government gave final approval for the Boeing purchase.

The airline maintains that the entire procurement process was carried out within established institutional and regulatory frameworks, leaving no room for questions over fairness or transparency.

On April 30, Biman signed a deal with Boeing to purchase eight 787-10 Dreamliners, two 787-9 Dreamliners, and four 737-8 aircraft at a total cost of Tk 45,000 crore.

As part of the agreement, Biman has already paid 0.5% of the 1% signing money on May 5. The remaining 0.5% is scheduled to be paid by December.

The airline is now seeking international financing to cover approximately $965.65 million (about Tk 11,600 crore) in pre-delivery payments. The amount will be paid in 98 installments before deliveries begin in November 2027.

Meanwhile, despite the Boeing agreement, European aircraft manufacturer Airbus has continued efforts to secure a deal with Bangladesh.

In a follow-up letter to the government, Airbus expressed interest in reopening discussions and signing a memorandum of understanding. Rafael Gomez Noa, Airbus’ representative in Bangladesh, said the company hopes to conclude negotiations in early July under competitive commercial terms while continuing discussions based on its previous proposal.

Under Airbus’ offer, the company would initially supply four A350-900 aircraft, with deliveries scheduled between 2034 and 2035. Airbus also proposed substantial discounts that could reduce the net price of each aircraft to around $165 million.

The proposal includes pilot and engineer training, a phased payment structure, and a clause requesting that Bangladesh refrain from negotiating purchases of comparable aircraft from other manufacturers for a specified period.