Biman takes cost-cutting measure to cut loss

DHAKA: Biman Bangladesh Airlines has taken an initiative to cut the cost operation as the national flag carrier is apparently making a nosedive into a financial crisis.
 
In a bid to cut down the huge financial loss, the state-run airline in a major decision opted not to pay any more overtime bill, to reduce transport cost, hotel expenditures and irregularities, according to sources.

“As part of the cost-cut drive the management will go for trimming its manpower, if necessary,” said an official source.
 
The Board of Directors, the highest policymaking body of the aviation company, discussed the austerity measure in a meeting at Balaka (head office of Biman) on Tuesday night.

Chairman of Biman Air marshal (retd.) Jamaluddin Ahmed presided over the meeting.
 
Biman has been in the red for the last three and a half years, allegedly for a lavish run, although it had earlier accumulated Tk 510 crore in cash reserves in February 2008.
 
The national flag carries is now in a “near-bankrupt situation,” said a top Biman official, on condition of anonymity.
 
Biman`s earnings from ticket sales fell by more than Tk 100 crore in-between January 17 and April 30 this year.
 
Of late, the company needs more than Tk 20 crore to pay monthly salary of the employees while its London office—to name one--is in debt amounting to over Tk 49 crore.

BDST: 1810 HOURS; 20 JULY, 2011