From the Cockpit with Bismillah Airlines’ Arafat

Bangladesh-based Bismillah Airlines is set to introduce the latest generation of narrowbody conversions to the country by taking on A321 freighters . The carrier previously told Cargo Facts that it intends to replace its fleet of three Hawker Siddeley HS 748s and capture a larger share of the cargo market. [caption id="attachment_56865382" align="alignright" width="450"] Bismillah Airlines intends to replace its three HS 748s. (Photo/Bismillah AIrlines)[/caption] Cargo Facts caught up with Arshal Arafat, vice president of planning and development at Bismillah Airlines, to discuss narrowbody and turboprop freighters, and the Bangladeshi market. What follows is an edited version of the conversation. Cargo Facts : What led you to select the A321? Arshal Arafat: We used to operate widebody aircraft in our early days through wet-lease arrangements. We had 747s, DC-8s, L-1011s, and we had the 747 for almost nine years. But what happened during the pandemic was our wet leases ended and the carrier didn’t renew because they started to fly the aircraft for themselves on longer routes, like China to the U.S., China to Latin America, and China to Europe, flying PPE and other things. So then we were thinking how we should go about it because at the time the 747 was a very hot item, and for at least two or three years, it was very hard and there was no availability of any widebody freighters and there was no belly space either. We decided to get our own aircraft and we actually signed up for a 757. Unfortunately, there was a big setback for us because we’re in arbitration with the lessor on the aircraft, but hopefully by next year we will have resolved this. But since we had selected the 757, the aircraft with the closest payload and range is the A321. In Bangladesh and this region, we don’t have many 757 operators, but in India, there are more than 300 A320 family aircraft, and also in Indonesia, Malaysia and Thailand. So, Airbus is very strong in their support and the pooling of this region. All this helped us in our selection of the A321. Airbus never had any footprint in Bangladesh until 2021 or 2022. They then grew their presence and added an office and a team her, and they’ve been helping us with our business plan and many other aspects. CF : Did you also consider the 737NG? AA: Here in Bangladesh, there are many 737 operators and it would have been easier to get a 737-800 freighter but with the -800, on routes like Hong Kong-Delhi, Hong Kong-Dhaka and Shanghai-Dhaka, the payload penalty is very high. We have to compete with 747s, A330s, 767s — all widebodies — and the best way to start for us as a new operator is with the A321. For crew support, engineering, simulator training, all of that is in India which is very close and accessible. CF : You previously told us you were looking at the ATR 72 and potentially the new SkyCourier. Are you still evaluating these two types, and do you have a preference? AA: We have already finished our business plan and model for the ATR. In Bangladesh, the ATR is very popular and we have more than twenty here. In terms of local support of crew, engineers, spare parts, Sabena Technics works with us very closely, so that’s not difficult. We have done the business and feasibility plan, so it’s just a matter of time before we go ahead with this project. On the SkyCourier, we are in discussions with the manufacturer trying to get all their performance data, and we have to prepare our business plan, so this will be a bit later and take around another year to finish. This is a very good aircraft for Bangladesh, because our internal road system is still not very well-developed, and we have so many ports. What we are planning to do is connect all the ports with the main warehouses and airports. The SkyCourier is going to help, especially with high-end valuables and electronic items like cellphones, iPads, power banks and batteries that are coming in via ship. CF : Do you plan to deploy the A321s both domestically and internationally? AA: In Bangladesh there are two or three airports that are very good for cargo but they are still not ready for a narrowbody. Those are fine for turboprops and they are where we have been operating our HS 748 aircraft which we plan to upgrade to the ATR 72 within the next one or two years. We carry a lot from Cox’s Bazaar in the south to Jashore in the southwestern part of the country and this cargo is very high-yield and seasonal. We have been operating since 2002 with our HS 748s, but we had some crew shortages because after the pandemic a lot of our crew went out of currency and crossed the age limit of sixty-five. That’s why we had to park those aircraft but we plan to launch our turboprop business after the A321. CF : How would you describe the airfreight market in Bangladesh, and how has it changed in the past two or three years? AA: Bangladesh is one of the top exporters of readymade garments to the West. But these exports are also heavily supported by imports from China, like fabrics, accessories and other raw materials. So these days, we have heavy loads coming from the East to Bangladesh, and then after the readymade garments are prepared, they are being transferred to Europe and the U.S. Usually these garments are transported by sea but what happens during times when there’s urgency or there’s a delay, or some production fallback, they use airfreight. You have to make the price very competitive. Actually, before the pandemic it was going quite well. Now the cargo market is down everywhere in the world, but every ten or fifteen years the market goes down and then recovers in two or three years. I think Bangladesh is going to be steady because our imports and exports are both important. There are more and more electronics factories coming up here and they are growing. The supply chains for these factories are from China, South Korea and Vietnam. At the same time, our pharmaceutical industry is also growing and we have those raw materials coming in. In terms of exports, readymade garments are still going to be the strongest because nobody can offer the same capacity and cost. India and China are expensive. There are other countries like Vietnam, Laos and Cambodia, but their capacity is not as high. Compliance is also very high now in Bangladesh, compared to Cambodia, Laos and Vietnam. CF : So overall you’re pretty optimistic? AA: Yes. We have been a cargo airline since 1997 and worked with the Gulf carriers. Once they grew their fleets, they started coming into Bangladesh with their own freighters and that’s partly why the carriers in Bangladesh could not grow. Our 747 operations were a very successful project but that was through wet lease. We don’t want to do wet leases anymore because the challenge is that the lessor is also an operator and that could hurt us directly. We hope that when we have the A321 it is going to do a lot for us. There is just over a month to go until Cargo Facts Symposium, taking place Oct. 25-27 at the Omni San Diego. Learn more about the essential event for stakeholders in the freighter and air cargo industry, and register today .

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