Biman Bangladesh Moves to Finalize $3.7 Billion Boeing Deal Amid US Trade Pact Signing
Dhaka, Bangladesh — The Bangladeshi government is pushing to conclude a landmark aircraft procurement deal with Boeing valued between Tk 30,000 crore and Tk 35,000 crore (approximately $3.7 billion), as a reciprocal tariff trade agreement with the United States is set to be signed today in Washington, D.C. The order comprises eight Boeing 787-10 Dreamliners, two 787-9 Dreamliners, and four 737-8 MAX jets — a mix of widebody and narrowbody types designed to overhaul Biman Bangladesh Airlines’ aging fleet and dramatically expand its operational reach. Commerce and Civil Aviation Adviser Sk Bashir Uddin confirmed the development at a press conference, noting that a techno-financial evaluation had been completed following proposals from both Airbus and Boeing.
“This negotiation is still ongoing,” the adviser said. “The aircraft buying proposal that we are making may be valued between Tk 30,000 crore and Tk 35,000 crore.”
Payment would be structured over an extended timeline — potentially spanning up to 20 years — translating to annual installments of roughly Tk 1,500 crore to Tk 2,000 crore, according to Bashir Uddin. The government will provide a sovereign guarantee to the flag carrier to secure financing, officials at Biman confirmed earlier. First deliveries aren’t expected until Nov. 2031, with the final aircraft arriving by Oct. 2035.
Fleet Strategy and Airbus Rejection
The decision effectively shutters a competing bid from Airbus, which had waged a determined diplomatic campaign to win part of the order. European ambassadors from France, Germany, the United Kingdom, and the European Union had publicly urged Dhaka to consider Airbus aircraft on commercial merit. French President Emmanuel Macron, during a Sept. 2023 visit to the Bangladeshi capital, went as far as thanking the country for what he described as a commitment to acquire ten Airbus widebodies.But Biman’s technical evaluation committee ultimately found Boeing’s proposal more operationally suitable. The carrier already operates a Boeing-dominant fleet — 14 of its 19 aircraft are Boeing types. Standardizing on a single manufacturer simplifies maintenance, training, and parts logistics, an advantage Biman’s leadership appears to have weighed heavily.
Biman CEO Dr. Md. Shafiqur Rahman pushed back against suggestions that the decision was politically motivated, telling state media the procurement followed “detailed assessments of fleet compatibility, maintenance support, financing options, delivery schedules and long-term operational efficiency.”
Trade Calculus Behind the Jets
The Boeing purchase doesn’t exist in a vacuum. It’s deeply intertwined with ongoing trade negotiations between Dhaka and Washington over reciprocal tariffs that have rattled Bangladesh’s export-driven economy. Since Aug. 2025, Bangladeshi goods have faced a 20 percent reciprocal tariff imposed by the Trump administration — down from an initial 37 percent after earlier rounds of talks. A senior commerce ministry official, speaking on condition of anonymity, indicated the tariff could drop further to 18 percent under the agreement being signed today. The deal also reportedly grants duty-free access to garments manufactured in Bangladesh using American raw materials, particularly cotton.
Bangladesh exports roughly $8 billion in goods to the United States annually, while importing about $2 billion — a trade gap that Washington has pressed Dhaka to narrow. Pledging to buy Boeing aircraft, along with commitments to increase imports of American wheat, soybeans, cotton, and LNG, forms a central plank of that effort. The signing ceremony is being conducted in a hybrid format. Adviser Bashir Uddin and Commerce Secretary Mahbubur Rahman are attending virtually from Dhaka, while a five-member delegation led by Additional Secretary Khadija Naznin is present in Washington. The commerce adviser had already signed the documents in Dhaka, which were carried to the American capital by the delegation.
Timing Draws Scrutiny
The deal’s timing has not gone unnoticed. Bangladesh’s 13th National Parliamentary Election is scheduled for Feb. 12 — just three days after the trade agreement signing. Critics have questioned whether an interim administration should be locking the incoming elected government into long-term procurement and trade commitments of this magnitude. Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue, argued that signing the pact before the election effectively ties the next government’s hands. Industry groups have also expressed frustration over the agreement’s opacity; a non-disclosure agreement with Washington has kept the full terms from public view.
Bashir Uddin defended the timing, arguing that delaying the agreement could jeopardize Bangladesh’s access to its single largest export market. Competitor nations, he noted, were already moving to strengthen their own trade arrangements with the United States. India, for instance, recently secured a bilateral deal cutting tariffs on its goods to 18 percent.
Biman’s Capacity Gap
The fleet expansion addresses a glaring operational shortfall. Of Biman’s 19 aircraft, only 14 are currently flyable. Last year, some 16 million passengers transited through Dhaka’s Hazrat Shahjalal International Airport, but Biman carried just two million of them — a 25 percent domestic market share that underscores the flag carrier’s inability to compete with foreign airlines serving Bangladesh. The 787-10, the largest variant in Boeing’s Dreamliner family, will anchor Biman’s long-haul international operations. The 787-9s add range flexibility, while the 737-8 MAX jets are intended to bolster the carrier’s short-to-medium-haul network across South and Southeast Asia and the Middle East.
Whether this procurement, arriving years from now with first deliveries in 2031, can meaningfully transform Biman’s competitive position remains an open question. The carrier faces mounting pressure from regional rivals, an evolving global tariff landscape, and the reality that fleet orders placed today must anticipate a market that could look very different by the time the aircraft actually arrive.
Photo Credit: Bornil Amin
This article was produced in accordance with our editorial standards. Aviantics maintains strict editorial independence.
