The government will provide a sovereign guarantee to Biman Bangladesh Airlines to buy 14 aircraft from US planemaker Boeing, as the two sides are likely to sign a deal within this month, sources at the national flag carrier said.
The first aircraft from Boeing for Biman is scheduled for delivery in November 2031, with the remaining aircraft expected to arrive by October 2035, Boshra Islam, general manager of Biman, told The Daily Star yesterday.
A sovereign guarantee is a commitment by the state to cover the debt or financial obligations of another entity if it defaults, reducing risk for lenders and improving access to financing for large or strategic investments.
“The government will give a sovereign guarantee to Biman to get the loan for buying aircraft from Boeing,” Boshra said.
Asked about financing, she said Biman will issue a request for proposal to get the loan. “We will get the loan from those organisations that will offer the lowest interest rate,” she added.
Biman has posted profits for the fifth year in a row. The state-owned carrier recorded a net profit of Tk 785 crore in the fiscal year 2024–25, a rise of 178 percent from the previous year.
At its annual general meeting on December 30 last year, Biman decided in principle to purchase 14 aircraft from Boeing to expand its fleet and modernise operations. The meeting was chaired by Aviation Adviser Sk Bashir Uddin, who is also the chairman of the national carrier.
Biman currently operates a fleet of 19 aircraft, 14 of which are Boeing-made. Under the new plan, the carrier will buy eight Boeing 787-10 Dreamliners, two Boeing 787-9 Dreamliners and four Boeing 737-8 MAX aircraft.
The interim government earlier pledged to buy 25 aircraft from Boeing as part of efforts to reduce the trade deficit with the United States. Following further evaluation, Biman finalised its decision.
The decision ruled out a competing proposal from Airbus to sell aircraft to Biman.
Under the previous Awami League government, a policy decision was announced to buy 10 Airbus aircraft, Boeing’s European challenger. After the fall of Sheikh Hasina’s government in the 2024 mass uprising, and amid pressure related to US reciprocal tariffs, the interim government shifted in favour of Boeing.
Board members said the move reflects the need to expand aviation capacity, strengthen international connectivity and meet future passenger and cargo demand.
The final contract with Boeing is likely to be signed within this month, followed by phased delivery of the aircraft, the sources said.
The board reviewed Boeing’s proposal dated November 24, 2025, along with a revised draft agreement submitted on December 20, 2025, before granting policy-level approval on December 30.
Biman has faced a severe fleet shortage in recent years after failing to manage aircraft availability through leasing, disrupting existing routes and delaying the launch of new services.
Aviation analyst and former Biman board member Kazi Wahidul Alam said aircraft purchases usually require a down payment of about 10 percent of the total price, usually arranged through banks.
“Only after the down payment is made and the aircraft purchase agreement is signed does the order become officially confirmed,” he said.
Recalling Biman’s 2007 deal with Boeing, he said the signing process was complex. “Initially, the plan was to sign the agreement in Dhaka. Later, we were required to go to the US Department of Commerce to finalise it,” he said.
Alam, however, said, “Relying solely on a single manufacturer undermines commercial competitiveness.”
Airbus, Europe’s largest aerospace company, has urged Biman to assess aircraft purchases based on commercial and technical merit rather than political considerations, amid reports that Bangladesh has agreed to buy Boeing aircraft as part of a trade arrangement with the United States aimed at easing additional tariffs.
Wouter van Wersch, executive vice-president for international at Airbus, told The Daily Star in December last year that Biman’s aircraft decision should be based on offers, not politics.
“We want Biman to take the decision based on fact, based on commercial, technical and capacity-building value,” he added.
In November last year, ambassadors and high commissioners from France, Germany, the United Kingdom and the European Union also urged the government to consider Airbus aircraft for Biman at a joint press conference in Dhaka.
