The Bangladeshi Government has agreed to give up majority control of loss-making Biman Bangladesh Airlines in a bid to revive stalled privatisation efforts.
Under the revised plan, 40% will be offered to strategic foreign partners, 11% to non-resident Bangladeshis and 9% to airline employees, leaving the government with 40%.
Original planning envisaged the government holding 51%. The carrier says the plan was revised after only one airline - competitor Gulf Air - filed an expression of interest for the 40% on offer. This was rejected.
Bangladesh's government has meanwhile agreed to allow the 40% on offer to be sold to a foreign financial institution or several institutions, instead of just to an airline as was initially required.
Biman is in desperate need of cash to carry out an operational restructuring, including a revamp of its fleet.
The sale was to have been completed earlier this year, but the carrier will now accept new expressions of interest until 15 July.
Source: Flight International
