Executive Summary:

Biman is the national flag carrier, which is fully owned and operated by the Government of
Bangladesh. The corporate body of Biman, namely ‘Bangladesh Biman Corporation, is doing
business as Biman Bangladesh Airlines under the Ministry of Civil Aviation and Tourism.
Biman was established as of a corporation on 27 October 1972 with a vision to protect Biman
Bangladesh Airlines ltd. in the aviation market as a world-class airline.

Biman has experienced man power that it is really a good strength though the
management of Biman cannot work independently because of government intervention.
At the same time considering the global standard of International Airlines, Biman is lagging
behind. The labor passengers have an extreme attraction for the national flag carrier for its home
like hospitality. The corporate background of Biman, its history of inception when it first starts
its journey to the international route, the company’s management structure, its vision, mission
and goals clearly summarized here. Fleet details, executive directors and present manpower
situation of the company are enumerated to give pragmatic information of Biman.

The main business of Airlines Company is to provide services to its valuable customers. Biman
involves providing two types of services such as passenger service and cargo services. It operates
its flight both in domestic and internationally. It provides various services such as hajj flight to
Saudi Arabia, ground handling operator, e-ticketing and passenger Intelligence Services to
customers. Biman has some profitable subsidiaries such as BFCC and BPC. These subsidiaries
provide catering services its own and other local and foreign airlines companies. Biman has its
own training center that provides training employees to a greater extent.
Introduction
Bangladesh Biman, the national Airlines of Bangladesh could never create any significant impact
in its business, either locally or globally. As a series of failure causes, number of domestic
destination either have been closed, or on the verge closing; where those "closed destination" are
being well utilized by some private airlines like GMG. Same is the case with regional or
international destination also. Biman the national flag carrier of Bangladesh has started its
journey from scratch virtually with no aircraft, no ancillaries. It came into operation immediately
after the war of independence. Despite many odds on its journey towards a long and challenging
way to progress. Biman has been able to establish its reputation as an airline of welcome smile
and an ocean of hospitality. Biman now carries the nation's flag to 8 South Asian destinations, 6
South-East and Far-Eastern destinations, 9 destinations to Gulf and Middle-East region and 6
European and North American points. A steady progress has been made with better services
ensuring increased passengers. To make Biman passengers feel "once Biman always Biman" the
airline has recently brought in some qualitative changes in its service concept. Biman has been
aiming in achieving the goal of being truly international commercially viable airline of the region
with its warmth and friendliness, care, safety record, traditional hospitality and comfort of the
services it offered. Biman in now flying even higher with great pride around the globe with the
bicolor, the nation's

The primary customers in the aviation sector are the government-owned Biman Airlines and the
Civil Aviation Authority of Bangladesh (CAAB), also government entity. Biman has a fleet of
about a dozen aircraft, including DC-10sand Airbus 310s for mid to long-haul flights. Biman
performs much of its own maintenance, presenting opportunities for sales of spare parts,
including engines. Two Airbus A310-300 aircraft (with U.S. engines) are operating on Biman's

Middle East routes. To transport pilgrims to Mecca from Bangladesh, Bimanleases at least two
aircraft annually. Biman has been planning to buy additional long-haul aircraft since FY1997, as
well as a variety of aircraft for shorter routes, but funding constraints have delayed the addition
of the much-needed aircraft.
Present condition of Bangladesh Biman

According to various top-level managers, Pilots & Engineers they think lack of strategic
planning, unskilled administration and severe corruption involve in the selling & purchasing,
also leasing air craft. For this reasons The Bangladesh Biman falls into a great losses. From the
last four years Biman Bangladesh Airlines facing problem and some employees are involved in
corruption about 348 taka for purchasing & selling air bus taking Liz and repairing engine and
purchasing other machineries. Biman Bangladesh Airlines bought two focal F-28 air plans a cost
of more than 6 corer 60 lakhs from Indonesian Haibard Company. Where 625 faults were found
in two F-28 plans before in comes to the country, still these two air plans are serving to
Bangladesh Biman. In 2001 Biman Bangladesh lease two DC-10 from USA Pegasus Company
by Spending 60 corer taka having fault with this two DC-10.Though Biman Bangladesh have 50
- 60 qualified pilot, they lease air plan with pilot. For those pilots they have to spend a large
amount of money for their salary and other compensation. In 2003 Biman Bangladesh leases two
Bowing - 737 from Singapore with pilots. Generally Airlines do not lease Air Plan with pilots
because if they lease Air plan with pilot, their own pilot have to seat and they bound to spend a
huge amount of money for those pilots.
Mission & vision analysis

Biman Bangladesh Vision

To establish Biman Bangladesh Airlines Ltd. in the aviation market as a world-class airline.

Biman Bangladesh Mission

To provide safe, reliable, efficient, adequate, economical and properly co-coordinated air
transport services and to satisfy customers’ expectations while earning sustainable profit and
continuing to be a caring employer.

Goal
To provide and develop Safe, Efficient, Adequate, Economical and properly coordinated air
transport services, internal as well as international.

Us Bangla Vision
Our vision is to be the most Preferred Airline of Asia offering a dependable, utmost safe and
ultimate comfortable service. We aim for absolute excellence in each and every aspect of our
operation, achieved with honest dedication.

Us Bangla Mission
 Expand internationally, providing cost-effective air travel options
 Provide an outstanding customer experience with the highest level of service provided
by well-trained and dedicated employees
 Maintain consistency in applying highest standards of safety and comfort
 Analysis on the basis of elements of mission Statement

Sl No Elements Biman IN numeric US Bangla IN numeric

Bangladesh Airlines
1 Customers yes 1 yes 1
2 Products or yes 1 yes 1
service
3 Market no 0 no 0
4 technology yes 1 yes 1
5 Concern for yes 1 no 0
survival,
growth &
profitability
6 Self-concept no 0 yes 1
7 Concept for yes 1 no 0
public image
8 Concern for no 0 no 0
employees
Total 5 4
Value in 62.5 50
percentage

Interpretation of mission statement

After analysis the mission statement of Biman Bangladesh & US Bangla Airlines is: On the basis
of various Para-meters like customers, product or services, market, technology, growth &
profitability, self-concept, concern for employees etc. We find that overall percentile/value of
statement of Biman Bangladesh is much better than the US Bangla Airlines. Which is clearly
shown in above table that Biman Bangladesh is having overall 62.5 avg. percentile and nice is
having 50 avg. percentile which is 12.5% greater than nice. So, it means that Biman Bangladesh
mission statement is much better than the nice.

For analysis the mission statement firstly, we convert the data into numeric form for getting the
output in percentage form.
Environmental analysis
Main Objective
To provide and develop safe, efficient, adequate, economical and properly coordinated air
transport services, internal as well as international.

Marketing strategy
Biman is far away from modern promotional activities. It has been coming up with all traditional
promotional activities. It has very poor budget on publicity and advertising. It has only some
publicity campaign through sports sponsorship. But these are not sufficient. It has some yearly
incentive plan for the agents. But the actual benefits of this incentive do not reach to the original
customer.

 Identifying the target market.

 Developing a clear insight into why a customer would choose Biman Bangladesh
Airlines.
 Distinguish the Brand
 Market position analysis
 Adopting the right diversification strategy for each market
 Increasing existing customer base
 Focusing on market penetration

Core Training Program:

Training and Development is a function of human resource management concerned with

organizational activity aimed at bettering the performance of individuals and groups in
organizational settings.

The employees and pilots of Biman Bangladesh get trained from domestic and foreign
institutions. Selected candidates will have to undergo training for a specified period at
Bangladesh Airline Training Center and any other institute approved by Biman.
The HRD department focuses on both training employees for their current jobs and developing
future roles and responsibilities.

 In house training
 Customer service training
 Panic attack training
 Behavioral training with the customers

Biman Bangladesh positioning:

“Reasonably safe aviation within your price range”

Reasonability: Exact price, exact service, positive response

External Environmental Factors

PESTLE ANALYSIS

To observe and analyze the external environment pest analysis can help any company to
understand the present and future situation.

Political Environment: Political Issues

Due to some political issues Biman is exploited in many different ways. Before it changed its
ownership Biman was fully government controlled. Government formulated their rules,
regulations and policies, which resulted into substantial losses for the company. According to
official sources.

 better provisions for the control of manufacture, possessions, use, operation, sale, import
and export of aircraft, the control and regulation of air transport services, and the control
and development of aerodromes in the country.
  The Aircraft (Removal of Danger to Safety) Ordinance, 1965 (XII of 1965) was
promulgated by the Government in the year 1965. It deals with flight safety.
 The Civil Aviation Rules, 1984 was made and promulgated by the Government in
exercise of the powers conferred by sections 4, 5, 7 and 8 of the Civil Aviation
Ordinance, 1960 (XXXII of 1960), section 10 of the Aircraft (Removal of Danger to
Safety) Ordinance, 1965 (XII of 1965), section 4 of the Telegraph Act, 1885 (XIII of
1885), and in suppression of the Aircraft Rules, 1937 and the Airport Obstruction
Clearance Rules, 1981.
This set of rules elaborately dealt with personnel (pilot, flight engineer, air traffic
controller, aircraft maintenance engineer etc.) licensing, airworthiness requirements,
operation of aircraft, rules of the air, air transport services etc. Much of today’s
operational responsibilities and functions of CAAB are defined and formulated in this
Rules.

Economic Environment
 As a national company Biman Bangladesh helps our country to decrease unemployment
by increasing every year the number of the employees.
 A national company capable of international flight helps Bangladesh to earn international
remittance.
 It helps our country’s economy by providing domestic airlines service.

Socio Cultural Environment

 Biman Bangladesh provide their service in all ages and religion of people.
 For not everyone can afford plane tickets Biman Bangladesh has given them a chance by
many discounts, promotional offers so that everyone can travel to their destination.
 They focus on people who like traveling.
 By traveling to many other countries Biman Bangladesh increases ethical response of
other country people towards Bangladesh.
  The Foundation strives to promote social and economic equality by funding non-profit
organizations delivering programs aimed at inner-city youth and underserved groups to
empower youth to fulfill their potential – programs that provide youth with the tools they
need to lead healthy, happy and actives lives.

Technological Environment
 R&D teams started online ticket booking system to help the customers.
 Biman Bangladesh Airlines provides their flight information online so that customers can
get those information easily.
 The total infrastructure of Biman Bangladesh Airlines is technical depended.

Internal environmental factor

SWOT Analysis of Biman Bangladesh

Strength:
 Captive Market - created by government.
 Its infrastructure may attract people.
 Number of people.
 Long term Experience.
 Sufficient resources.

Weakness:

 Excessive number of Human Resources.

 Little salary.
 Corruption.
 Motiveless employees.
 No relation between Salary & Profit.
 No intention to implement strategies.
 CEO comes from non-business organizations
 Porter’s 5Forces Analysis

PORTER’S FIVE FORCE MODEL

SNO
PARTICULAR
. DEGREE

1) THREAT OF NEW ENTRANTS LOW

2) RIVALRY AMONGST EXISTING FIRMS HIGH

3)     BARGAINING POWER OF BUYERS - MODERATE

4) BARGAINING POWER OF SUPPLIERS MODERATE

5) THREAT OF SUBSTITUTES HIGH

Threat of new Entrants

The industry in which Biman operates, viz. airline industry, the threat of new entrants is low.
This is mainly due to the fact that barriers to entry are high. Organizations trying to enter the
airline industry are faced with a great deal of challenges, the biggest being the capital
requirement. To start an airline will require a number of aircrafts. Both the UK Country and the
Reservation managers do not believe that their airline face any real threats from new entrants.
They stated that the airline industry is already saturated and it is one of the most expensive
industries to operate in. To add to that, one has to fulfil the safety requirements that makes it
more expensive.

According to the questionnaire (See Appendix B), 48 % of the customers prefer Biman
Bangladesh Airlines for London-Dhaka flights. 8% of the customers prefer to fly with Kuwait,
Emirates and British Airways Airlines. Air India is preferred by 16% of the customers and Qatar
Airlines preferred by the rest of the customers. From the pie chart given above it can be stated
that Biman prospers from healthy customer loyalty. Lots of customers choose Biman repeatedly
and this adds to the fact that the threat of entrants is low.
Bargaining Power of Suppliers
Power rests with the suppliers in the form of price and quality of supplies. Suppliers can increase
the price or lower the quality of their goods and services. In the airline industry there are mainly
two suppliers of airplanes, namely Boeing and Airbus. The demand for their planes is very high
due to the fact that there are lots of airlines and the manufacturers can only produce so much.
Therefore, the power of suppliers is quite high and they have a firm grip on the market.
Moreover, the price of oil is one of the major factors of cost for all the airlines and Biman
following a cost focus strategy is more vulnerable to changes in oil prices. Thus, the bargaining
power of suppliers is quite high for Biman.

Bargaining Power of Buyers

Buyers are usually customers and customers if powerful have the ability to reduce prices, ask for
high quality products and services. In the airline industry, the bargaining power of buyers is high
and is increasing as there are lots of airlines to choose from and there are hardly any switching
costs. Moreover, there are lots of travel agents and customers can now buy ticket online from
even intermediaries. Therefore, they do not really have to stick to one airline and this increases
the power of the customers.

Threat of Substitutes
In the airline industry, the threat of substitutes is only applicable for national airlines.
International airlines such as, Biman do not really have to worry about any substitute. The threat
of substitute is very low for Biman.
Rivalry within the Airline Industry
The competition within the airline industry is very intense virtue of the fact that there are so
many service providers. There are many airlines flying the same route and competing for the
same customers.

Biman, following a cost focus strategy faces competitions from a great deal of companies, such
as Air India, Emirates, Qatar Airways, and British Airways and so on. The rivals are always
trying to increase their market share by offering best prices for the services they offer, launching
promotional campaigns, advertising and many more. The Country Manager believes that it is
quite difficult to keep the prices down and do lots of marketing activities at the same time. He
stresses that competition is increasing day by day and more of their target customers, namely
Bengalis are slowly moving towards the other service providers. Almost all airlines face tough
competition and an airline like Biman who follows a cost focus strategy are more vulnerable to
competition

It can be seen from the above table that Biman has twelve competitors in this route. We can say
that it is highly competitive route. They are in an immense pressure to reduce the prices and
improve quality. The business is getting more unattractive now as most of the airlines runs on
very low profit margins. Biman has to come up with good service and decent planes in order to
survive in this industry.
 COMPETITOR ANALYSIS OF Biman Bangladesh

BIMAN US BANGLA Novo Air

BANGLADESH

KEY SUCCESS FACTOR Weight Rating Wt’d score Rating Wt’d score Rating Wt’d score
0.0 to 1.0 1 to 4 1 to 4 1 to 4
DOMESTIC MARKET 0.1 4 0.4 2 0.2 3 0.3
POSITINING
INTERNATIONAL MARKET 0.1 4 0.4 3 0.3 3 0.3
POSITIONING
CUSTOMER LOYALTY 0.08 3 0.3 3 0.24 3 0.24
0.1 4 0.4 4 0.4 4 0.4
BRAND RECOGNITION
0.09 3 0.27 3 0.27 4 0.36
PRICE COMPETITIVENESS
0.07 4 0.28 4 0.28 3 0.21
PRODUCT QUALITY
RELATIONSHIP WITH 0.07 3 0.21 4 0.28 3 0.21
MANUFACTURERS AND
SUPPLIERS
0.1 4 0.4 3 0.3 3 0.3
PRODUCT R&D
0.1 4 0.4 3 0.3 2 0.2
PRODUCT DIVERSITY
0.07 3 0.21 3 0.21 2 0.14
FINANCIAL POSITION
0.08 4 0.32 4 0.32 3 0.24
MARKETING
0.04 3 0.12 3 0.12 3 0.12
ORGANIZATIONAL
STRUCTURE
1 3.71 3.22 3.02
TOTAL
CONDITION(RATING SCALE)

1 LESS THAN AVERAGE

2 AVERAGE

3 MORE THAN AVERAGE

4 STRONGLY
Interpretation
After competitive analysis of Biman Bangladesh & US Bangla, we conclude that the Biman
Bangladesh faces fierce competition from all sides. The athletic shoe industry is quite large and
very competitive. Biman Bangladesh receives most of its competition from US Bangla Which is
clearly shown in above table, that Biman Bangladesh is having better market then US Bangla &
other competitors in the shoes industries. And Biman Bangladesh has been capturing 4.5%
market more than that of US Bangla. The EPS of Biman Bangladesh in FY2011 is $ 4.26, which
is higher than the FY2010 that is $ 3.5.

Conclusion
Biman Bangladesh Airlines Limited is 100% owned national airline of Bangladesh. They always
try to improve the organization, aircraft & facility with modern policies. The chief of this
government-owned organization is by designation the Minister of the Aviation Ministry. This
corporation is operated through a Board of Directors. Usually, this Board of Directors is headed
by a Chairman who is supposed to be accountable to a higher authority. Management practice is
made up of many different individual parts. But organizations create success for each of these
parts through a broad continuous improvement strategy. By focusing on individual departments
or having each department create its own initiative, businesses facilitate change at a larger and
more organized way. The outcomes from this study show Biman’s management practices have
faced a number of problems.

Information on mismanagement and corruption in the organization has run out in recent years.
Such incidents include mismanagement in management processes such as lack of adequate
planning, poor passenger service, corruption in purchasing or leasing aircrafts, and lack of
planning with regard to scheduling, fleet planning, and human resource management and so on.
Biman can try to develop its management activities in some areas, such as financing & planning,
leadership behavior, flexible communication medium etc. Although, in many aspects Biman lags
behind, But It is one of the first choices for fly to many customers. Therefore, the following
recommendations are made to be considered for future improvement and development of sound
operation system within Biman Bangladesh Airlines.