Why is Bangladesh Buying 25 Boeing Jets in a Tk 35,000 Crore Deal?

The government of Bangladesh has announced a major plan. It will purchase 25 new aircraft from US aerospace giant Boeing. The deal is valued between Tk 30,000 crore and Tk 35,000 crore (approximately $3.7 billion to $4.3 billion). Civil Aviation and Tourism Adviser Sk Bashir Uddin confirmed the plan. He said the agreement is scheduled for signing soon. The purchase is a strategic move. It aims to consolidate Bangladesh's nearly Tk 1 lakh crore export market in the United States.

Aviation Deal Linked to US Trade Tariffs

The aircraft purchase is directly tied to ongoing trade negotiations. Bangladesh seeks to reduce tariffs on its key exports to the US. The main export is ready-made garment (RMG) products. Adviser Bashir highlighted the tariff issue. Exports to the US were initially subject to a 37 percent tariff. Through negotiations, this rate was reduced to 20 percent.

Dhaka is now pushing for a zero-duty rate on RMG exports. The large Boeing order is seen as a diplomatic gesture. It aims to narrow the trade imbalance with the US. This is a common strategy in global trade diplomacy. Other countries, like India and Vietnam, have made similar large orders. These orders were also linked to reciprocal tariff discussions.

Fleet Expansion for Biman Bangladesh Airlines

The new aircraft are intended for the national flag carrier, Biman Bangladesh Airlines. The airline needs to expand its fleet capacity. Biman's current fleet requires urgent modernization. The government initially considered 47 aircraft. They opted to proceed with 25 for now.

While the specific models for the full 25-aircraft order were not immediately disclosed, reports suggest the initial tranche of 14 aircraft includes:

• Eight Boeing 787-10 Dreamliners
• Two Boeing 787-9 Dreamliners
• Four Boeing 737-8 MAX jets

This mix of wide-body and narrow-body jets will support both long-haul and regional routes. The first delivery of a widebody aircraft is reportedly expected by 2029.

Political and Financial Context

The interim government is finalizing this major transaction. Adviser Bashir stated this ensures the incoming elected government can operate without additional pressure. The decision follows a techno-economic feasibility study. This study compared proposals from both Boeing and Airbus.

However, the deal has drawn attention from industry observers. Critics note the interim administration is committing the country to a multi-billion-dollar sovereign guarantee. This commitment is being made just before an election. The purchase is an "order, not yet a purchase." It still requires formal clearance from key government committees.

Adviser Bashir also noted that public disclosure of agreement details complicated prior negotiations. He suggested a lower tariff rate might have been secured otherwise. The government continues to negotiate for further tariff reductions. The ultimate goal is to secure a competitive edge for Bangladeshi exports.

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