Editorial
Biman sees profit at last
Transformation of national flag-carrier gives us reason to hope
After four years in the red and decades of mismanagement, the fact that Bangladesh Biman has posted an operating profit of Tk 19 crore for the 2007-2008 fiscal year is welcome news and deserving of congratulations all around.
There is no reason why Biman, under dynamic management and leadership, and with modern and efficient practices and procedures, could not be a profitable entity, as many experts and commentators have observed over the years.
Always, what held Biman back was too much interference from the civil aviation authorities and indeed from any politically connected party, up to and including heads of government.
The key to turning this all around was Biman's transformation into a public limited company in 2007 which paved the way for the management to operate independently and without political interference.
The steps taken to bring Biman back to profitability, from greater efficiency in route planning, to better internal discipline, aircraft maintenance, to slow but steady replacement of old aircraft with newer ones, to arrangements to retire long-standing debt and retrench workers, have been bold and decisive, and have all paid dividends.
Now we have a lean and profitable national flag carrier that is poised to further improve now that the initial difficult decisions have been taken and are being implemented. Indeed, the fact that Biman has done so well as the airline industry is in the doldrums world-wide only points to the possibilities in the future.
With ever-growing numbers of migrant workers and NRBs who prefer to travel on Biman, there is a huge niche that the airline can fill. If it manages to fill this niche efficiently, the health of the airline looks promising for many years to come.
This should be the model for our other state-owned or quasi-governmental enterprises. There should be no government interference and the enterprise should be put under professional management, with an eye towards best practices, competitiveness and efficiency, and providing a valuable service to the people of the country.
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