Biman Bangladesh Airlines holds nearly BDT 170 billion in assets, giving it a stronger financial base than several regional competitors. But that balance-sheet strength has yet to translate into operational efficiency or a better passenger experience.

The gap is reflected in its latest Skytrax audit. The state carrier received a three-star rating from the London-based aviation agency despite its vast assets and operating modern wide-body aircraft. Biman also carries BDT 137.33 billion in debt.

Skytrax defines three-star airlines as those that meet acceptable standards but have clear shortcomings and inconsistent operations. Its assessment of Biman cited weaknesses in ground operations at Dhaka airport, poor cabin cleanliness and maintenance, and uneven staff performance. For passengers, those failings have left the experience well below what the size and capability of the fleet should deliver.

The problems extend beyond day-to-day operations. Biman has gone through 44 managing directors and chief executives in its 54-year history, making it difficult to sustain a long-term strategy.

Aviation experts say plans to expand the fleet and route network, reduce costs, manage debt and improve passenger service have often stalled with changes in leadership or been restarted under new models. Successive administrations have abandoned or revived initiatives, while frequent appointments of senior executives with little or no airline-management experience have made it harder to build institutional expertise. Biman has consequently struggled to capitalise on its substantial assets and market potential while keeping pace with competitors on operational efficiency and passenger service, according to experts.

“Assets alone do not guarantee profitability or competitiveness,” Kazi Wahidul Alam, an aviation analyst and former Biman board member, told Bonik Barta.

“Biman’s primary deficit is a lack of professional management,” Alam said. “Cycling through 44 chief executives over 54 years, often by appointing individuals with no background in airline management, has failed to build a stable, effective management. Higher-ranked carriers maintain far greater operational discipline. Biman holds substantial assets, an established passenger and cargo market, and expanding demand. But without professional management to exploit those advantages, the carrier continues to lose ground.”

The airline now operates 19 aircraft: two Boeing 787-9s, four Boeing 787-8s, four Boeing 777-300ERs, four Boeing 737-800s and five Dash 8s. Together, they generated a net profit of BDT 7.85 billion in the 2024–25 fiscal year.

But the profit has not erased Biman’s liabilities to state-owned bodies including the Bangladesh Petroleum Corporation for fuel and the Civil Aviation Authority of Bangladesh for aeronautical fees. Its 2024–25 audit report put total debt at BDT 137.33 billion.

The contrast with some regional carriers is stark. Several airlines with similar or smaller fleets hold four-star Skytrax ratings. Royal Brunei Airlines operates 12 aircraft and has a four-star rating. It generated BDT 18 billion in revenue in FY 2024–25 from an asset base of more than BDT 80 billion.

Bangkok Airways, which also holds a four-star rating, operates 23 active aircraft. It reported total assets of about BDT 185 billion and annual earnings of BDT 13 billion in 2025.

Luxair, the Luxembourg-based carrier, operates 24 aircraft and likewise holds a four-star rating, despite having an asset base comparable to Biman’s.

Although Biman recorded the highest profit in its history in FY 2024–25, industry experts have raised questions over the airline’s asset management and operational efficiency.

KM Mozibul Hoque, chairman of Total Air Services Ltd, told Bonik Barta: “Biman’s recent profit is welcome, but balance sheets and earnings alone don’t measure an airline’s structural capability. The real metric is how effectively aircraft, ground services, international slots and supporting assets generate returns relative to total debt and capital deployed.”

Biman’s 2024–25 financial disclosures show fixed assets of BDT 107.16 billion. Aircraft and flight equipment accounted for 88 percent of that, or BDT 94.57 billion. The rest comprised real estate, ground-support machinery, furnishings and spare-parts inventories. Including current holdings, total assets stood at BDT 169.61 billion.

The asset base is expected to grow further. Biman recently signed a deal with Boeing to buy 14 aircraft, comprising 10 787 Dreamliners and four 737 Max jets, for about $3.7 billion. Deliveries are due to begin in November 2031 and run through October 2035. The airline is also considering a separate Airbus proposal for 10 aircraft. That expansion will add to Biman’s capital base and increase the pressure on management to generate higher returns from its assets.

“Aviation is capital-intensive, and simple asset accumulation doesn’t equal operational strength,” Wing Commander (retd) ATM Nazrul Islam, an aviation consultant, told Bonik Barta. “What matters is how efficiently those assets are used to generate revenue and profit.”

The challenge, he said, is to make the existing fleet work harder and generate more revenue without allowing costs to rise with it.

“Sustaining last year’s BDT 8 billion profit requires maximising flight hours, optimising fleet-route matching, trimming administrative overhead and driving up unit revenue. Biman’s primary operational flaw remains the lack of a functional ‘hub-and-spoke’ network, leaving long-haul wide-body aircraft underutilised. Excess staffing and operating costs are also adding to the pressure,” Islam said.

He said Biman must do more than show a profit on paper and strengthen its operating cash flow. With large debts and instalment obligations, steady cash generation is critical to the airline’s long-term viability. The aviation consultant urged Biman to regularly analyse passenger numbers by route, seat occupancy on each aircraft and revenue from individual routes to guide fleet and route planning.

Biman generated a record BDT 7.85 billion net profit in 2024–25 from passenger, cargo and ground-handling operations. Yet arrears to Padma Oil Company for jet fuel and to the aviation authority for airport and navigation charges continue to weigh on its balance sheet. Debt servicing and cash-flow management therefore remain a major challenge despite higher revenue.

Biman executives, however, point to the record profit as evidence that the airline can operate commercially despite those constraints. The carrier has been profitable in four of the past seven financial years despite global industry headwinds and contributed about BDT 1.1 billion to the national treasury, they said. Officials added that Biman is clearing its arrears to the aviation authority and making scheduled payments on debt linked to fleet acquisitions.

“Biman carries no distressed debt burden. Regular debt repayments are bringing down its liabilities quickly and the organisation’s financial position remains positive,” Managing Director and Chief Executive Kaizer Sohail Ahmed told Bonik Barta.

Ahmed also pointed to the size of Bangladesh’s overseas diaspora as a long-term commercial advantage.

“With a 54-year operating history, Biman retains significant strategic advantages, chief among them Bangladesh’s massive overseas diaspora,” he said. “Beyond core Middle Eastern routes like Saudi Arabia, growing migrant communities in Japan, South Korea and Singapore represent major untapped demand. If Biman can capitalise on this market, it can expand its international business further. Its main priority now is to improve service quality and strengthen its position in international competition.”

But expanding that footprint will require changes beyond the fleet. Ahmed acknowledged that, despite being a public limited company, Biman’s state ownership limits its operational autonomy.

“Major global airlines such as Qatar Airways can make commercial decisions far more freely. We are doing our best within the constraints of the current structure,” he said.