Controversial Airbus Order To Be Finalised

The controversial and long-awaited Airbus order with Biman Bangladesh Airlines is on the brink of being finalised, with 10 aircraft set to become a reality.

From Political Courtship To Now An Order

For years, Airbus has been striving for a chance to be part of Bangladesh’s future, following Biman, the national carrier, pushing to renew and grow its commercial fleet.

With Biman heavily favouring Boeing despite pushes from Airbus, the European planemaker felt that it was at a disadvantage, not because of its proposal, which lacked, but because of the political advantages Boeing held being in the United States.

As such, Airbus began lobbying hard to break down the near monopoly that Boeing was set to win in Bangladesh and with Biman. Emmanuel Macron visited Dhaka in 2023 and referenced the relations between Boeing and the national carrier, as well as his frustrations.

Despite pushes from Airbus, Biman would go on to purchase Boeing jets and, for that period, seemingly leave its competitor out of the equation, with politics being the big winner. That was until Biman put Airbus back into the framework.

Bangladesh has now formally begun the process to acquire 10 aircraft from Airbus and aims to sign an agreement by 31 August 2026 with the national airline, writing to the planemaker to express its intention to meet the deadline.

The notice represents the first clear commitment received after years of back-and-forth and much political frustration from the planemaker over decisions made by the country in the best interests not of its national carrier but of politics and trade ties.

What’s Involved In The Airbus Order?

The shape of the Airbus deal still needs to be finalised, with Biman having already signed a $3.7 million agreement with Boeing in April for 14 aircraft, including Boeing 787s and 737 MAX jets.

As a result, the revision from Airbus was more noticeable in the units removed from the initial proposals. The current deal put forward covers 10 aircraft, reportedly with four A350-900 widebodies and six A321neo narrowbodies.

The mix mirrors what Boeing has been able to put forward, with single-aisle and widebody needs covered, but now allowing Bangladesh to diversify its mix and add more fleet types. Some analysts have drawn on that complexity with operators, while others hail it as a safer bet.

Irrespective of whether Airbus or Boeing provides the jets, the need for planes ultimately aligns closely with Biman’s long-term fleet roadmap, with an emphasis on renewal and growing the fleet by FY2034/35.

As part of the requirement, building the fleet for future replacement efforts needs to happen first in order to bring down the average age and remove older types. However, the other component is growth, with planes strictly being purchased to bring new route opportunities to the map.

Why Has This Deal Been So Controversial?

While all new commercial aircraft orders have their roadblocks, the pushback for Airbus and Boeing’s contracts with Bangladesh has been heavily frowned upon by many parties close to the nation and airline. Analysts hold the view that while necessary, it’s also irresponsible given other current problems close to home.

Controversy extends beyond the angle of Bangladesh being irresponsible with the purchase, but rather to how outspoken Airbus has been about this contract through the years. Rarely does the planemaker speak out on deals, instead putting forward a proposal if needed and allowing the airline to decide.

In the case of Bangladesh and the first deal being signed with Boeing, Airbus executives repeatedly fronted the media and expressed their disappointment with the manner in which the nation was deciding on its fleet mix.

This rare occurrence in the industry immediately put the spotlight on the European planemaker and how it approached the deal. Now it’s part of the contract, looking to become firm in the coming weeks after much disagreement and negotiations.