This blog has previously covered the parlous state of Bangladesh Biman and the hair-raising corruption that seems to be the defining feature of that organization. In spite of regular doses of bad news across many fronts - massive financial losses, horrible safety performance, nonexistent customer service, pukurchuri on the grand scale, defaults on international airport fees and fuel charges, etc etc - in spite of all that, none of our previous elected governments seemed to be much interested in pursuing any sort of reform. An attitude of “jemne choltese choluk” prevailed. Indeed, in the very recent past the mahouts of this white elephant had the audacity to ask both the Finance Ministry and the World Bank for large bailout packages. The lowest of many low points came two months ago when a Biman plane was responsible for shutting down Dubai airport, one of the world’s major aviation hubs. It has seemed to many that it’s only a matter of time before a major accident involving Biman happens somewhere, bringing both the carrier and our country into the headlines for all the wrong reasons.
It is therefore welcome news that the CTG government appears, at long last, to be trying to fix this broken-down company. (BBC story here). This morning, 1400 job cuts were announced as the first major step of a tentative privatization initiative. Details of the scheme are unclear and appear to be contradictory - for example, the government speaks of ‘public limited company’ status by middle of this year while at the same time it wishes to hold on to a 100% stake for now. That doesn’t add up. Other details should raise eyebrows even higher: the MD Mr MA Momen wants a USD 43-million parachute package for the laid-off employees, which translates to roughly 31,000 USD per employee.
Nonetheless, these baby steps are in the right direction. It is not that the loss of 1400 jobs is cause for celebration, especially in a poor country like Bangladesh. Rather it should be set in the context of Biman’s unrivalled record for corruption and waste. Our taxpayers are not obligated to provide life support for an indolent and inefficient state sector indefinitely. Far better that the outfit should be sold off promptly to the highest bidder and that the operation should be run on the same competitive principles that have seen private airlines thrive all across South Asia, including Sahara and Jet in in India and our very own GMG in Bangladesh.
Of course it must be remembered that in the past, many a proposed reform has come unstuck in the face of determined, even violent, union opposition. Here’s hoping that this is not another false dawn for our national carrier.