Biman Bangladesh Airlines’ latest order for 11 Boeing aircraft will cost US$2.7 billion, a senior official with knowledge of the procurement has told Aviation Express, raising a fresh question over the national carrier’s multi-billion-dollar fleet expansion: why does the price again approximate Boeing’s historical catalogue value?

The question assumes particular significance because Biman’s first Boeing purchase this year, 14 aircraft ordered on April 30, was publicly valued at approximately US$3.7 billion at list prices.

Now, less than five months later, Biman has committed to another five Boeing 787-10 Dreamliners and six 737-8 aircraft. Yet neither Biman nor the government has disclosed the negotiated price, discount, financing structure, payment terms or delivery schedule.

A senior official familiar with the latest procurement told Aviation Express that the 11-aircraft package would cost US$2.7 billion.

That figure is strikingly close to the aircraft’s historical catalogue value.

Boeing no longer publishes current aircraft catalogue prices. Based on its last publicly available 2019 list-price benchmarks, a 787-10 was priced at US$338.4 million and a 737 MAX 8 at US$121.6 million.

On that basis, five 787-10s would have a historical list value of US$1.692 billion and six 737 MAX 8s US$729.6 million, a combined US$2.4216 billion, or roughly US$2.42 billion.

The comparison immediately raises a critical question: if the latest deal costs US$2.7 billion, what discount, if any, did Biman negotiate from Boeing?

Catalogue prices are not normally synonymous with final transaction prices. Large commercial aircraft orders are typically subject to confidential negotiations covering discounts, financing, support packages and other commercial concessions.

The historical benchmark alone therefore cannot establish that Biman is paying catalogue price for the latest aircraft. But with the government withholding the contract value and negotiated terms, the proximity of the reported US$2.7 billion figure to the roughly US$2.42 billion historical list value demands an explanation.

The issue is particularly important after the first 14-aircraft package was publicly valued at US$3.7 billion at list prices.

Together, the two Boeing packages represent aircraft carrying announced or historical headline values of more than US$6.4 billion.

For a state-owned airline undertaking one of the largest fleet expansions in its history, even a modest percentage difference in negotiated pricing could translate into hundreds of millions of dollars.

No extensive assessment

Questions over pricing are compounded by concerns over the assessment preceding the latest purchase.

Aviation Express has learnt that Biman’s techno-finance committee carried out only a limited assessment of the additional 11-aircraft proposal before the supplementary agreement was signed in New York.

A senior official familiar with the process, speaking on condition of anonymity because of the sensitivity of the matter, said:

“What I can say is that we did not go through any extensive assessment of Boeing’s additional deal.”

The disclosure contrasts with Biman’s public explanation that the aircraft were selected according to its fleet requirements.

“This order responds to specific requirements in our fleet plan,” Biman Chairman Rumee A Hossain said after the signing.

That leaves another important question: if the 11 aircraft represented a specific requirement under Biman’s fleet plan, why did a commitment of reportedly US$2.7 billion not undergo an extensive techno-financial assessment?

Why so many 787-10s?

The choice of aircraft is also being questioned within Biman.

Another Biman insider familiar with future route planning told Aviation Express that the airline’s projected network does not require so many 787-10s and argued that the smaller 787-9 would be sufficient.

“As per Biman’s future route planning, we do not need the 787-10. The Boeing 787-9 is sufficient,” the insider said.

Biman ordered eight 787-10s in April and added another five under the latest agreement, taking its commitment to 13 new 787-10s, compared with only two new 787-9s.

The two agreements together cover 25 Boeing aircraft — 13 787-10s, two 787-9s and 10 737-8s.

Boeing said the larger 787-10 provides additional capacity and lower seat costs while maintaining commonality with Biman’s existing Dreamliner fleet.

But the commercial advantage depends heavily on route demand, passenger loads and yields. Biman has not publicly released the route forecasts or aircraft-sizing studies supporting the decision to acquire 13 of the largest Dreamliner variant.

Commercial terms remain secret

The latest agreement was signed in New York on the sidelines of the 81st United Nations General Assembly.

Until shortly before the signing, neither Biman nor the government had publicly confirmed the aircraft mix, transaction value, financing arrangements or delivery schedule.

Even after Biman and Boeing announced the agreement, the commercial value remained undisclosed.

Boeing’s official announcement confirmed the five 787-10s and six 737-8s but did not disclose a price.

The lack of disclosure makes it impossible to independently determine whether the reported US$2.7 billion represents the aircraft purchase price alone, includes financing or support arrangements, or reflects another valuation basis.

It also prevents scrutiny of perhaps the most important commercial question: what price did Bangladesh actually negotiate?

35 aircraft potentially in pipeline

Biman is meanwhile considering a separate acquisition of 10 Airbus aircraft - four A350-900s and six A321neos.

If the Airbus purchase proceeds, Biman could have 35 new Boeing and Airbus aircraft in its acquisition pipeline, alongside plans to lease aircraft for shorter-term capacity requirements.

State Minister for Foreign Affairs Humaiun Kobir has rejected suggestions of any hidden agenda behind the Boeing agreement, saying Bangladesh would expand Biman’s fleet according to its needs as the country seeks to become an aviation hub.

The issue, however, extends beyond whether Biman buys Boeing or Airbus. It is about whether billions of dollars in long-term aircraft commitments are being subjected to rigorous commercial assessment and whether the national carrier is securing the best possible terms.

After a first 14-aircraft Boeing package publicly valued at US$3.7 billion at list prices, the reported US$2.7 billion cost of 11 additional aircraft puts the pricing question squarely back on the table.

What was Boeing’s offer? What discount was negotiated? And why have those terms not been disclosed?