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[UPDATE] – The Airbus deal is, apparently, back on.
Here’s the source of this news. The numbers are odd—two A350-900s for $1bn? The negative cash flow in the deal is not surprising. This news follows earlier reports Biman was looking at up to ten A350s.
- Biman will have to pay a total of $900 million for the two aircraft by June 2027, which is 18.6% higher than the base price of $763.75 million offered by Airbus based on 1 January 2023.
- Of course, prices changed between 2023 and 2027! The entire market has changed as Airbus’ A350 orderbook has grown.
- What does the airline suppose a deal on 787s might cost? At least they already operate 777s and 787s.
- Biman will need to pay a $10 million non-refundable commitment fee upon signing the memorandum of understanding.
- This is not a shocker.
- Biman has a reputation. The airline was not a particularly good customer when it signed for three Q400s six years ago. Canadian Commercial Corporation supported the deal.
- Moreover, last year, Biman was behind on payments to the Civil Aviation Authority of Bangladesh.
- The airline claims it is profitable, but there are doubts about it.
- Moreover, in December, there was a report about Biman being cash-constrained and still considering two A350s.
- Boeing’s offer has been “on the table for months but it is yet to be taken up for evaluation.” sends an awkward signal.
- Politics, as usual, makes deals messy.
- The US sanctioning the airline for Iran overflights would stymie any Boeing offer.
- Head of State actions by France and Bangladesh muddies the waters more.
The non-refundable $10m commitment fee shows how Airbus views this deal. At least that fee would help cover the OEM’s time and effort in the back-and-forth. No media reports offer any details on Boeing’s offer other than types.
This long saga with a state-owned airline leads to the inevitable outcome. That non-refundable $10m commitment fee is now much easier to understand.
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