Inside Airbus’s mega plan to develop the aviation ecosystem in Bangladesh

The French aerospace firm plans to assist aviation centered greater schooling establishments, promote cooperation in air site visitors administration and airport operations to enhance air site visitors companies, and far more

29 Might, 2023, 09:00 am

Final modified: 29 Might, 2023, 02:38 pm

Infographic: TBS

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Infographic: TBS

Whereas native air operators wrestle to recruit aviators, the European plane producer Airbus has give you a mega plan to develop the native aviation ecosystem. They may arrange an ab initio faculty for the primary time in Bangladesh to supply business pilots and mechanics, saving overseas forex for the nation within the course of,  as air operators at current prepare pilots overseas. 

Ab initio refers to airline profession pilot programmes that soak up college students with little or no or no flight expertise and create competent, skilled airline pilots by offering ATPL (Airline Transport Pilot License) in 18 months. 

Airbus has already signed an settlement with Bangabandhu Sheikh Mujibur Rahman Aviation and Aerospace College (BSMRAAU) to arrange the college in Lalmonirhat within the northern a part of Bangladesh. 

Infographic: TBS

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Infographic: TBS

The French aerospace firm has been working on this regard for the final two years, pursuing the federal government to allocate land to construct the infrastructure and eventually, they introduced up the difficulty within the just lately signed MoU (memorandum of understanding) titled ‘Aviation Commerce and Funding Partnership’ between the Bangladesh authorities and the UK authorities. 

On 5 Might throughout the prime minister’s go to, the MoU was signed in London over buying 10 wide-body plane, together with two cargo and eight passenger planes, the place Airbus supplied a long run plan for creating aviation infrastructure. 

The aerospace firm got here up with a complete bundle which incorporates supporting aviation centered greater schooling establishments, selling cooperation in air site visitors administration and airport operations to enhance air site visitors companies, delivering Airbus capability to construct initiatives to reinforce expertise of civil aviation personnel and tackling environmental challenges, together with discount of aviation emissions. 

In line with the signed settlement, Airbus will present strategic recommendation and advertising and marketing companies to Biman Bangladesh Airways to help in its operations. On the similar time, the aerospace firm will construct a fleet plan as much as 2030, corresponding to how Biman can maximise the utilisation of plane, which routes they need to go for growth to generate extra income, advertising and marketing plan and so on.  

Because the deal was signed between two governments, there isn’t a possibility of a 3rd social gathering receiving fee, and it’ll reinforce Bangladesh’s bilateral commerce with Germany, France, Spain and the UK, that are shareholder nations of Airbus, stated a senior govt of the aerospace firm.  

“The commerce and aviation partnership shouldn’t be solely restricted to plane, but additionally to the event of the native aviation {industry}, to upskill human capital and to assist Biman in its ambition to turn into a high airline,” he stated. 

“It’s a win – win partnership to spice up an {industry}, which has been slowed down by the monopoly of Boeing,” he added.

At current, the UK and the European Union altogether account for 60% of Bangladesh’s whole exports. 

The signed MoU additionally features a clause on exploring the potential for additional improvement of commerce, enterprise and tourism between the UK and Bangladesh. Airbus may even assist the holding of an annual aviation summit in Bangladesh as per the MoU. 

The Civil Aviation and Tourism Ministry, in collaboration with the UK and France, organised the ‘Bangladesh Aviation Summit-2023’ for the primary time in Dhaka in March this 12 months. 

Within the summit Prime Minister Sheikh Hasina stated Bangladesh ought to formulate a roadmap contemplating its geo-strategic benefit, to make the nation an aviation hub.

“Reaping the dividend of our geo-strategic benefit, we must always create a roadmap as to how we will make our nation an aviation hub,” she stated in a video assertion aired throughout the inaugural session of the aviation summit.

The prime minister additionally described the summit as very important for Bangladesh.

The summit will assist the Bangladesh authorities and air operators perceive the actual alternatives within the aviation enterprise to make the nation an aviation hub, the Airbus govt advised The Enterprise Commonplace when sharing their curiosity to enter the Bangladesh market.

Referring to Worldwide Air Transport Affiliation (IATA) knowledge, he stated that Bangladesh’s aviation {industry} has solely a 0.3% contribution to the GDP, when the common contribution of different creating nations is 4%. 

When contacted, European Union (EU) Ambassador to Bangladesh Charles Whiteley advised The Enterprise Commonplace that “the affirmation by the Bangladesh authorities of the acquisition of 10 Airbus plane illustrates the constructive trajectory of commerce and funding relations between Bangladesh and the EU and the UK.”

“Airbus is taking an modern and complete strategy to assist the event of Bangladesh’s aviation ‘ecosystem’, at an vital second when there may be a lot potential within the aviation sector. This might  embrace pilot coaching, logistics and organisational experience,” he stated. 

“The EU is exploring methods to assist this modern strategy. Our International Gateway programme is prioritising assist to infrastructure and connectivity. Bangladesh is a precedence accomplice nation for International Gateway engagement,” he added. 

“Airbus stands able to assist the growth of Bangladesh’s civil aviation sector, for passenger and freighter operations, which can be a key driver of the nation’s accelerated financial progress,” stated Remi Maillard, president, Airbus South Asia. 

“Airbus is aligned with Bangladesh’s Imaginative and prescient 2041 and is able to contribute to develop an area aerospace ecosystem that may give wings to the 2041 ambition. The imaginative and prescient of 2041 will draw additional investments into the nation from numerous components of the globe that may propel the necessity to develop long-haul passenger and cargo operations,” he added.

Director of Commerce and Funding at British Excessive Fee, Dhaka, Dan Pasha, stated, “The signing of the Aviation Commerce and Funding Partnership demonstrates the UK’s dedication to strengthening Bangladesh’s aviation {industry}, serving to to create jobs in each nations, driving financial progress and boosting bilateral commerce. We assist Bangladesh of their goal of changing into the subsequent aviation hub in South Asia, serving to to proceed to spice up financial progress.” 

How Airbus entrance will develop aviation {industry} 

Amid an industry-wide extreme disaster of pilots, the biggest personal airways US-Bangla despatched a gaggle of scholars to the USA, to coach them as first officers, at their very own price. Beneath this programme, the airways would require to spend at the very least $65,000 per head. They intention to coach greater than 20 pilots below this initiative, because the provider goes to develop its fleet. 

Although the demand for pilots is rising amid the doorway of latest air operators and fleet growth of current operators, there isn’t a pipeline for pilot manufacturing within the nation. It’s as a result of just one academy – the Galaxy Flying Academy – is in operations and that too, with poor capability. 

The nation’s nationwide provider can be operating at a 50% scarcity of pilots, forcing it to function its fashionable fleet in wanting utilisation capability and inflicting income loss. 

Biman shouldn’t be getting enough functions even after promoting jobs for pilots, in keeping with the provider. 

It’s on this state of affairs that Airbus is planning to enter Bangladesh, to develop the aviation infrastructure and ecosystem by coaching pilots, mechanics, and engineers. 

When contacted, CEO Captain Lutfor Rahman stated that the entry of Airbus is nice information for Bangladesh’s aviation {industry} as they don’t seem to be solely promoting plane, but additionally creating the infrastructure. 

Citing the pilot demand of the {industry}, he stated US-Bangla alone wants at the very least 30 pilots in a 12 months and if the whole {industry} is included, the demand is 60. If Airbus units up the college, it’ll assist the {industry} meet the demand and scale back pilot coaching price. 

He stated US-Bangla can be including two vast physique A330-300 plane by August this 12 months. One other slender physique ATR can be added by the top of 12 months. Because of this, the variety of the fleet will stand at 21 by this 12 months. The provider may even take 4 Airbus subsequent 12 months taking the quantity to 25, the most important fleet in Bangladesh, when presently Biman has 21 plane. 

That is the primary time US-Bangla goes so as to add an Airbus airplane to its fleet, he stated. At present, it has seven Boeing in its fleet, he added. 

He stated Airbus is offering them coaching for pilot, cabin crew and engineers at their very own price. So, including Airbus to their fleet is not going to add additional price for them, he added. 

He stated although Bangladesh aviation {industry} has been dominated by Boeing within the final three many years, they didn’t develop any coaching facility or ecosystem for the {industry}.    

If Airbus provides simulator coaching to their faculty, will probably be extra useful, as there may be none within the nation. Because of this, operators should ship current pilots overseas to take the coaching, he added. 

The potential of the passenger and cargo marketplace for Bangladesh

The Air Journey Market in Bangladesh is roughly between $600 million to $700 million for passengers, with common progress of 8% to 10% every year, in keeping with IATA statistics. 

IATA forecasts air transport in Bangladesh will develop by 168% within the subsequent 20 years below the “present traits” state of affairs. This might end in an extra 12.1 million to 30 million passenger departures by 2038.

If met, this elevated demand would assist roughly $2.1 billion to $3.2 billion of GDP and round 140,000 to 222,000 jobs.

In line with Airbus world projection introduced on the aviation summit in March, each the passenger market and air cargo market from Bangladesh will proceed to develop close to the highest of the world for the subsequent 20 years. 

The passenger market will develop at 6% whereas the air cargo market will develop at 8% per 12 months, or triple the world common. The expansion is pushed by Bangladesh’s GDP progress and rising openness of its financial system. 

Growing a devoted nationwide cargo operation coupled with rising Biman’s passenger fleet can be very important in boosting the nation’s GDP and gaining the standing of the excessive earnings nation as per the nationwide strategic plan, Imaginative and prescient 2041, in keeping with the Airbus presentation. 

On the passenger facet, Asia-Pacific and the Center East will lead progress within the worldwide sector with passengers set to extend over 300% and 230% respectively by 2041. 

Europe and North America each pose glorious alternatives to develop Biman’s community and repair, as every market forecasts to develop passenger site visitors by over 150% within the subsequent 20 years. 

Air freight cargo site visitors from Bangladesh is forecasted to proceed to develop at a staggering fee for the subsequent 20 years from 400,000 tonnes in 2019 to 1.1 million tonnes by 2041, in keeping with the Airbus presentation. 

To accommodate the stress of air travellers, particularly within the Asia Pacific area, the third terminal of Hazrat Shahjalal Worldwide Airport is moving into form and by 2023, it’s anticipated to be useful, and three operational worldwide airports, together with one in Cox’s Bazar, will be a part of the record quickly.