AN ANALYSIS OF FLEET MODERNIZATION PLAN OF BIMAN BANGLADESH AIRLINES

Abstract

Airline is a competitive industry and the competition is increasing day by day. So in this competitive market Biman needs some strategies that make them alive in this market. As airlines struggle to gain market share and sustain profitability in todays fiercely competitive and economically demanding environment, so Biman must develop new ways to manage their customer relationships to optimize customer loyalty and revenues. So the biggest challenge for them is what tactics Biman should use to acquire, develop and retain customers with greater precision and improved results The report is about “Analysis of Fleet modernization plan of Biman Bangladesh airlines”& is prepared based on the fleet operation of the Biman Bangladesh airlines. The report has three parts front matter is introduction, background of the study, objective, scope of the report, limitations and methodology, description of the different section under the accounts department and their accounting policy. The middle matter is about the present fleet situation, and an analysis on future fleet operations. Finally the back matter is followed by recommendations and conclusion. Biman aging fleet with average age of 25 years needs immediate replacement of DC 10-30 and F-28 aircraft that are 30 years old. Moreover, all 3 types of aircraft of Biman’s fleet are out of the production for a long time. Due to aircraft shortage, Biman is currently operating to a reduced network with very poor schedule regularity and the market share reduced in 31.6% in 2007. Biman has a huge captive market, which is being exploited by the third carriers due to the shortage of capacity of Biman. Induction of new generation aircraft is an immediate requirement for Biman’s survival as an airline. For the above reason 3 types of aircraft might be suitable for the new fleet – ü Long range, high capacity (350+seats) ü Medium to long range, Medium capacity (275 seats) ü Short to medium range (150-180 seats)