US embassy cable - 05DHAKA3177

UNCLAS DHAKA 003177 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, PGOV, BG 
SUBJECT: BIMAN CRASH PROMPTS BDG APPROVAL OF NEW AIRCRAFT 
PURCHASE 
 
REF: DHAKA 02988 
 
1. Summary:  A Biman Bangladesh flight, inbound from Dubai 
carrying 215 passengers, crash landed and skidded off the 
runway in Chittagong on July 1.  Mechanical and pilot error 
have been alleged as cause.  No one was seriously injured 
but, according to Biman officials, the airplane is completely 
destroyed.  The pilots have since been suspended from their 
jobs at Biman pending the conclusion of the investigation. 
Civil Aviation Minister Nasiruddin subsequently met with 
Finance Minister Saifur Rahman to discuss purchase of ten new 
planes.  Rahman has reportedly signed off on the purchase of 
four airplanes - two each from Boeing and Airbus.  End 
Summary. 
 
2. The airplane bound for Dhaka experienced mechanical 
problems with its landing gear forcing a crash landing.  The 
plane caught fire and the passengers had to be evacuated. 
Six passengers suffered minor injuries.  A five-member 
inquiry committee headed by Biman's technical safety director 
is investigating the cause of the accident.  Blood samples of 
the pilot to check for alcohol were collected and allegations 
persist regarding his lack of experience and drinking prior 
to taking off from Dubai.  International flights from the 
Chittagong airport were suspended for the week but domestic 
flights resumed the next day. 
 
3. Civil Aviation Minister Mir Muhammad Nasiruddin met with 
Finance Minister Saifur Rahman on July 6 to discuss purchase 
of new planes and stressed the immediate need for new 
aircraft following the accident.  The Finance Minister 
officially agreed to the purchase of four aircraft initially 
and left the door open for further purchases.  Rahman said 
Biman's operations have to be overhauled before more aircraft 
are purchased. 
 
4. According to local media, he asked the Civil Aviation 
Ministry to submit a "cost-effective plan" outlining ways to 
streamline the national airline.  He cited lack of funds as 
the primary reason for not approving the purchase of ten 
planes at this stage.  Civil Aviation Minister Nasiruddin 
told local reporters that they have been offered short-haul 
Airbus aircraft for $90 million each and long-haul Boeing 
777s for $129 million each. 
 
5. Rahman told reporters that the decision to go with Airbus 
or Boeing will depend on price.  The Civil Aviation Minister 
told the Ambassador at a late June meeting that the 
Cabinet-level Purchase Committee was reviewing the decision 
to purchase 10 new aircraft. (Reftel).  The ultimate decision 
to purchase would be made by the Finance Minister and hinged 
on securing adequate financing.  The Finance Minister told 
reporters that the BDG is prepared to provide sovereign 
guarantee for a maximum of $400 million to secure financing 
for the airplanes.  This concession is definitely a big step 
in moving forward with the purchase of the new aircraft. 
 
CHAMMAS