Biman Bangladesh Airlines:

Founded: 4tn January,1972Hubs: Zia International AirportSubsidiaries: Biman Flight Catering Centre Biman Airlines Training CenterFleet size: 12 (7 in active service)Destinations: 23Company slogan: Your home in the skyHeadquarters: Dhaka, BangladeshWebsite: www.Bimanair.com

Introduction: Biman Bangladesh Airlines is the national airline of Bangladesh, based at Zia International Airport in Dhaka. It provides domestic as well as international service to Asia and Europe, but derives most of its revenue from flights to Osmani International Airport Sylhet. It has Air Service Agreements with 42 countries; it maintains flights to 18. Until July 2007 the airline was owned by the Government of Bangladesh; on 23 July 2007, it was transformed into Bangladesh's largest Public Limited Company by the then Caretaker government of Bangladesh. Created in February 1972, Biman operated an internal monopoly in Bangladesh until 1996. Dogged by corruption and accidents, the airline suffers from an ageing fleet, with some of its long-haul aircraft banned for safety reasons from the US and EU member states. Annual Hajj flights, labor migrants as well as Biman's subsidiaries, form an important part of the carrier's business. Biman has a 2 star ranking out of 5 by Skytrax a United Kingdom-based consultancy.

Recently, Biman turning into a public limited company is a major decision. But Govt. must have ensured that these steps will be fruitful. Otherwise its not too far when our national flag carrier will be just worthless.All previous attempts to bring about changes didn’t bear effective because of resistance from within the organization. So, we are giving consideration at first on Biman’s present problems, possibilities, abilities and lastly how to do these things.

Opportunities of Biman Bangladesh:

The airline was wholly owned by the Bangladesh government through the Bangladesh Biman Corporation since its inception. In 1977, Biman was converted into a public sector corporation which afforded Biman limited autonomy, governed by a board of directors appointed by the government, from July 31, 2007.

• Biman Bangladesh Airlines is the largest PLC in the country with an authorized capital of Tk 15,000 crore divided into 150 crore ordinary shares of Tk 100 each. The new PLC has acquired all movable and immovable assets and liabilities (about Tk

2,000 crore) of Biman Bangladesh Airlines through the previous agreement on july31, 2007. Now the government wants to retaining 51% shares in its own hand.

• According to that report- we have still the opportunity to eliminating the prevailing situation. TIB suggested eliminating the prevailing ‘dual policy’ in Biman’s operational structure and not appointing any bureaucrats as the chairman of the Biman’s board of directors.

• The ministry of Civil Aviation and Tourism has issued an official invitation for Expression of interest from airlines interested in becoming a “Strategic Partner” of Biman. It is a wise move that may help Biman to get its acts together and be more competitive in the global airline industry.

• We have the opportunity to start Biman new journey as a public limited company with zero liability. It has to enhance its efficiency & competitiveness as an organization. It’s also necessary to give punishment to the responsible for corruption and irregularities in Biman.

• It’s difficult to make the Biman a profitable organization by owning 51% share in government, Rather government can sell 49% the shares in the market in the beginning. Authority can make device partnership with any other experienced airline by giving them the total power to operate this organization. We have also the opportunity to find out how many flight it have to be operate per day and for that how any and what type of aircrafts we need.

So finding out all these opportunity we can make Biman profitable.

Strengths of Biman Bangladesh:

Biman Bangladesh has several strengths that can help them to achieve their goal. It has highly skilled & professional workforce & strong infrastructure. Some points are given below:

• Biman Bangladesh Airlines, which began as a government-owned national carrier in 1972, became Bangladesh's largest public limited company in 2007.

• Annual Hajj flights, transporting non-resident Bangladeshi workers/migrants as well as Biman's subsidiaries, form an important part of the carrier's business.• Biman Bangladesh Airlines and Boeing announced the airline's order for four 777-300ER and four 787-8 Dream liner airplanes at a signing ceremony in Dhaka, the capital of Bangladesh.

• Biman currently connects Bangladesh with 18 countries around the world, and has agreements in place that will allow it to serve a total of 42 countries. Biman’s current fleet includes five DC-10-30 aircraft, providing 1,373 seats in total. • Biman also operates a cargo service using the cargo holds of its passenger aircraft to ship freight to international destinations. It has established a Cargo Village at Zia International Airport where the cargo is packaged and labelled before being loaded onto its aircraft.• Douglas DC-10s and Airbus A310-300s make up most of Biman's international fleet. Fokker F28s make up the remainder of the fleet for the domestic and regional sectors.

Weakness of Biman Bangladesh:

Past few decades Biman faces massive corruptions. When political government changed they gave promised that they will do their best for the betterment of this organization. But anybody done nothing for betterment of Biman.

• There are huge numbers of different unions in this organization. These unions have developed political lines and corruption which is bad for Biman.

• All over the world airlines company use the latest software but Biman stay behind & information is not always available

• The service quality is another important part. Where we are very poor.

• Biman could not buy new generation aircraft so far. Limited resource, bureaucracy are the main problem.

• Biman employees are not qualified. The remuneration of the employees are very low.

• If we compare Biman with other airlines, we found the poor picture. An airline’s biggest asset is its image. Our image damaged for the low workforce, remuneration, safety, administration, corruption and other factors.

Threats of Biman Bangladesh:

• Different international airports including Heathrow Airport strongly criticised Bangladesh Biman for its repeated failures to maintain flight schedules and warned of not granting slots if it failed to be punctual.

• The workplace needs a complete change. The private sector airlines have profited from Biman’s weakness. The foreign airlines have increased frequencies and cut deep into Biman’s market share.

• Biman is usually not the first or even second choice. Because Biman has been a loosing concern for most of its life, it does not even generate enough interest among the board members, with the exception of a few. They have little time for a full, detailed review of Bimans activities.

Organization Development Intervention:

From above discussion we know continued corruption of over more than two decades because these effect on Biman. Now we try to identify some of other problems and then try to figure out the possible OD interventions. Expert created an theory of interventions to help organization members address specific problems effectively. It addresses a wide range of specific problems & opportunities. Interventions are just one component of the OD formula. OD interventions are set of structural activities in which selected organizational units engage in a task or a sequence of tasks with the goals of organizational improvement and individual development. Behind every program is an overall game plan or intervention strategy. This plan integrates the problem or opportunity to be addressed, the desired outcomes of the program, and the sequencing & timing of the various interventions. We know that different interventions have different dynamics. They do different things because they are based on different causal mechanisms. It’s important to know the underlying causal mechanisms of interventions to ensure the intervention fits the desired outcomes. Examples are given below:-

•Discrepancy intervention, •Theory intervention, •Relationship intervention •Perspective intervention etc.

The four areas we will hereby focus on, keeping the options being evaluated in consideration for Biman are:

1. Management2. Fleet3. Service4. Man power

Management: Many of the members of Biman’s board actually took their first flights on an airplane when they were “gifted” with the job of running Biman. Many never went past school but were members of the parliament, and were relied upon to guide the airline. In its 35 years of operation, Biman has had 24 managing directors. Whatever way Biman is to be restructured, certain fundamentals should change. The board of directors should not have more than two representatives (from 2 ministries—finance, & civil aviation & tourism) from the government. All others on the board should be from different areas of commercial aviation (airlines, finance org. travel agencies etc.) this will ensure knowledgeable guidance, with overseeing from different areas of commercial

aviation. After an early period of expansion and growth, Biman entered an era of nose-diving profits and slow growth, exacerbated by incompetent and corrupt management; with padding of purchases, falsified repair bills and unprofitable routes kept in operation for political reasons. In 2007, the caretaker government launched an anti-corruption drive.

Fleet: Biman Bangladesh Airlines was established on 4 January 1972 to be Bangladesh's national airline under the Bangladesh Biman Ordinance (Presidential Order No. 126). The initiative to launch the national flag carrier, was taken by 2,500 former employees, including 10 Boeing 707 commanders and 7 other pilots, of Pakistan International Airlines, who submitted a proposal to the government on 31 December 1971 following the independence of Bangladesh. The airline was initially called Air Bangladesh International but was soon renamed Biman Bangladesh Airlines. Biman is a Bengali word meaning airplane; it originates from the Sanskrit word vimana, a name given to a flying machine mentioned in ancient Vedic literature. The logo, painted on the tail, is a stylished white stork (Balaka in Bengali) inside a red circle. The initial livery was a dark blue line extending across the aircraft along the windows and engulfing the tail section. This was replaced in the 1980s by dark green and red lines, matching the colours of the Bangladesh flag, and has remained in place for over two decades. The Balaka has also given its name to the Biman headquarters, the Balaka Bhaban (Balaka Building) and a landmark sculpture in Dhaka depicting storks is in front of Biman's former headquarters. On 4 February 1972, Biman started its domestic service on the Dhaka–Chittagong, Dhaka–Jessore and Dhaka–Sylhet routes with a World War II vintage Douglas Dakota and Douglas DC-3, both gifts from the Bangladesh Air Force. On 10 February 1972, Biman experienced its first accident when the Douglas DC-3 crashed near Dhaka during a flight test, killing all five crew members. A Douglas DC-6 was immediately leased from Troll Air, a Norwegian airline to keep the domestic service running. On 4 March 1972, Biman started its international operations with a once-a-week flight to London using a Boeing 707 chartered from British Caledonian. The short haul fleet was supplemented by a Fokker F27 from India on 3 March 1972 which saw the start of a daily flight between Kolkata (Calcutta) and Dhaka on 28 April 1972. Three additional Fokker F27s were acquired during March and September of the same year bringing the number

of Fokker F27 aircraft to four. In the first year of operation, Biman operated 1,079 flights carrying just over 380,000 passengers. Four additional Fokker F27s, purchased from Australia and the Netherlands, joined the fleet in 1973 enabling Biman to double the frequency of the Kolkata flight to a twice daily service. A Boeing 707 was added to the fleet in September and the flight to London became twice weekly, while a Chittagong-Kolkata flight also began operating at the same time. In 1974 operations were extended to Kathmandu (February), Bangkok (November) and Dubai (December). In 1976, Biman sold two of its Fokker F27s and bought another Boeing 707 to extend international services to Abu Dhabi, Karachi and Mumbai. Singapore was added to Biman's list of international destinations, when a third Boeing 707 was purchased in February 1977, followed by Jeddah, Doha and Amsterdam the following year which also saw the purchase of its fourth Boeing 707, from the United States. In 1977, Biman was converted into a public sector corporation to be governed by a board of directors appointed by the government. The airline broke-even for the first time in 1977–78, and made a profit the following year. International destinations expanded to include Kuala Lampur, Athens, Muscat and Tripoli in 1979, followed by Yangon, Tokyo and Dhahran in 1980. Planning a fleet for Biman is a tricky task. It would essentially depend on how much money it can have (from its own revenues, the government, donors, etc), and over what timeframe, to go shopping for airplanes.

Biman is already on the lookout for Airbus A300s and A310s (sharing the same type of rating for crews) to keep its mid-haul operations going, and for high-density configured Boeing 747s to dedicatedly operate to the Middle East. We think this is a fairly good plan for operations for the next 4-5 years. Biman should also consider selling off two of its four McDonnell Douglas DC-10-30 aircraft, and use the money to convert the other two into freighters. The volume of cargo traffic into and out of Dhaka has more than doubled in the last 5 years, most of which is carried by international scheduled carriers and charters. Biman can deploy two DC-10-30s for the cargo market to and from the Middle East and Europe, and earn lucrative cargo revenues while having to spend less on maintenance for freighter operations. In a maximum of 5 years from now, Biman should have 3rd generation aircraft for its passenger fleet, for which the planning and ordering should be done now. Its long-haul aircraft choice should be between the Boeing 777-200ER and the Airbus A330-200; mid-haul aircraft between Boeing 737-800 and the Airbus A320; and for domestic operations the Bombardier Q400 and the ATR 72-500. In our opinion, a fleet composition of B777-200ER, B737-800, and ATR 72-500 would be most appropriate for Biman. The A330-200 is one of the best aircraft ever built by Airbus, but the extra range and capacity of the B777-200ER would allow Biman to operate long-haul flights, with headroom to increase capacity, while benefiting from lower cost-average per statute mile (CASM). For flights across the Atlantic to the US, if they are resumed, Biman would also benefit from the better Extended Twin-Engine Operations (ETOps) performance of the B777-200ER over the A330-200.

A choice between the B737-800 and the A320 should actually be made depending on the choice made between the B777-200ER and the A330-200, simply because an order for both requirements from the same manufacturer would yield a better price offering from the manufacturer. In terms of performance these two aircraft are nearly identical, and

since both types are operational in large numbers in the Asia-Pacific region more maintenance facilities are available for them. Between the Bombardier Q400 and the ATR 72-500, there is a clear difference in favour of the ATR 72-500 for Biman's needs. While both types seat approximately 70 passengers, the direct operating cost (DOC) of the ATR 72-500 is significantly lower than that of the Bombardier Q400. While the Q400 is a better performer in tough weather conditions and high-altitude airports, the ATR 72-500 performs perfectly up to the mark in the weather conditions of this region. The fact that hundreds of ATR 72-500s are in operation with numerous carriers in Southeast Asia alone is a testament of the superiority of the aircraft itself.

Service: Biman is notable for poor customer service and regular disruptions to its flight schedule including lengthy delays and cancellations which is reflected in its Star ranking from Skytrax, a United Kingdom-based consultancy whose research is used by the UK government in formulating air transport policy. The 2 star ranking (out of 5) is indicative of the poor standard of service provided by the airline which falls below the industry average. In 2007, Biman faced strong criticism from major international airports including Heahthrow and Dubai International Airport for its failure to maintain flight schedules. Heathrow Airport operator BAA, wrote to Biman providing evidence which showed Biman had not achieved the minimum 80% usage of its allocated landing slots at Heathrow, as required by EU and IATA regulations, during summer 2007. Biman should therefore not expect slot allocations at Heathrow for summer 2008 and should look to Stunted or Gatwick airports if it wished to continue serving London. However, following discussions with BAA, Biman obtained landing slots for the summer 2008 period on condition that it achieved 80% usage. A two-class service (J & Y) is operated on its wide-body airliners and a single class service on the smaller aircraft. The Maslin Executive Class cabin on its Airbus A310s is setup in a 2-3-2 configuration while the setup on the Douglas DC-10-30s is a more roomy 2-2-2 configuration. The economy class cabins are setup in a typical 2-5-2 configuration. In-flight entertainment aboard Biman aircraft is

rated "very poor" by Skytrax.

Manpower: It is theoretically and practically impossible for any airline to operate with such a high manpower-to-aircraft ratio. Biman should immediately cut the manpower number down to 2,000, while scaling up the fleet size to at least 20 aircraft, which would then give it a manpower-to-aircraft ratio of 100 employees for each aircraft. Biman should also get rid of unnecessary subsidiaries (poultry farms, fisheries and press, for example) and outsource to competitive suppliers. Perhaps only then can efficient and competent management of operations make the airline sustainable. Biman had 13 aircraft in service (including the one that crashed at Dubai on March 12 and 5 more aircraft which have remained grounded over the past few months). And the airline still has 5,000-strong manpower, which gives a manpower-to-aircraft ratio of about 380 employees per aircraft.

Organization Development Model & Theory

Preferable OD model:Organizational development is planned change in an organizational context. The development of models of planned change facilitated the development of OD. Models and theories depict, in words or pictures, the important features of some phenomenon, describe those features as variables, and specify the relationships among the variables. Planned change theories are rudimentary as far as explaining relationships among the variables, but pretty good for identifying the important variables involved. Several recent theories show great promise for increasing our understanding of what happens & how it happens in planned change. Here we provide a suitable framework with a theory for Biman.

There are several models of OD given by different experts. We choose, “The Congruence Model Showing the Organization as a system”, which was given by- David Nadler & his Associates.This identifies organization as an input-throughput-output system. & it’s for understanding organizational dynamics & change. The three major input factors are:

1. The environment- which impose constraints & opportunities about what the organization can & can not do; for example in existence for 35 years it has achieved lots like its providing 1,373 seats in total and its current competitors are divided both externally and internally.

2. Resources – that are available to the organization, such as capital, Biman’s Authorized Capital is Tk 750 crore, of which so far approximately Tk 382 crore has been paid up by the government, and the airline still has 5,000-strong manpower, which gives a manpower-to-aircraft ratio of about 380 employees per aircraft knowledge & technology and so on.

3. History- which consists of memories of past successes, failures, important events & critical decisions that still influence behavior today. Biman was established on 4th January 1972 under the Bangladesh Biman Ordinance.

To make change in Biman we need to look at first about the input factors. Because these factors are contains all necessary information. If we can make change of these factors then it will be easy for us to develop organization easily. We want to develop a plan which will be start from the input section and will be end in output section. Here at first we will try to explain how to develop in input section.

DESCRIPTION OF MODEL:

The Congruence Model by- David Nadler & his Associates.

We discuss the major factors below:

Environment: First of all the authority should give concentration on restrain ting corruption. Because, our National Flag Carrier was occurred loss especially for corruption. Our government legislature plays a silent role in case of developing. Rather they were always willing to get extra privileges from the authority. And for getting better privileges they had set their supported person who will help to get that so called-“privileges”. Most of those people were uneducated and unskilled. To save our Biman we need to make a well structured environment. We can deregulate environment can allow competition. Until recently, Biman enjoyed exclusive use of the international

air traffic rights of Bangladesh as governed under the Air Service Agreements (ASA) with other nations. With this exclusive privilege, Biman were given an illusive 'protection' by the government. Through over a decade, the airline passenger traffic growth in Bangladesh was averaging around 6 percent annually, whereas Biman has experienced a steady decline in its market share over its lifetime. Since no private airlines of Bangladesh were allowed to operate in international routes where Biman had a scheduled service, the growth of traffic were all taken away by the international carriers whom neither Biman nor the government had any way to stop. The environment of any organization consists of both internal & external environment. And in this model as well as theory the authors are claimed that environment is - which creates opportunity & problems about the ability to do something or not of the organization. If we think about the constraints of Biman Bangladesh Airlines those are comes from environment are: corruption in each level, poor safety and image, government rules & regulations etc

Recourses: Second important factor is resources. We should make a comprehensive audit for finding out the actual amount of resources having the organization. Then we should find out the amount of resources we need and the way of proper utilization. We need to generate a huge number of cash, which is impossible from our internal resources. Biman urgently needs money, a lot of that actually. In the year 2007, according to different newspaper article, Biman needs to pay $7.5 million for the engines lying with KLM and MTU so two grounded DC-10s, out-station fuel bills amounting to approximately TK 20 crore, and last but not least, for the people who keeps Biman flying. What resources we are having and what amount resources we need for the betterment of this organization. If the government truly wants to make the Biman as a profitable pool then first of all it should try to exempt Biman from PPR (Public Procurement Regulation)-2003. The Public Procurement Regulation of 2003 prepared by the World Bank for the government to follow for public procurement activities has turned out to be a nightmare for Biman. It has 'encouraged' corruption at Biman, and has crippled the airline's fleet modernization efforts. The airline should be immediately exempted from having to conform to the PPR-2003 as far as aircraft and aircraft spares procurement is concerned. The government should take a bold and determined initiative to do this favour for Biman. Of course, all aircraft and spares purchases should be fair, transparent, and accountable to the Board of Directors.Let the government removes all the barriers by taking the liabilities, so that shares can be offered to viable business partners. The government should leave off the plan to keeping 100% share on its own hand. In 2007 the World Bank is assisting with nearly Taka 300 crore for the golden handshake being executed in the form of VRS. This will help the airline streamline its manpower structure, which provides a great start. But it is the plan of action thereafter that lacks sense. Subject to security by more knowledgeable professionals from the airline industry, we have following set of four suggestions:

The government should move all accumulated liabilities of Biman into a block account, and sell 51% shares of the airline to the highest- bidding, and eligible, investors.

1. The government will gradually offload up to 49 per cent shares of the airlines to the private sector and retain 51 per cent shares. But we want to suggest that the

government should sell 51% shares to the private sector instead of 49% shares, & retaining 49% shares in their hand.

2.While selling off the 51% shares, and therefore allowing absolute legal control of management to the new investor, the government should also commit in advance that once it receives dividends equivalent to the amount of liabilities transferred to the block account, it would give away the remaining 49% shares to the investor as well.

3. The government would get the money back, & the investor would be motivated to maximize profits to allow it to buy out the remaining 49% stakeholding at the soonest.

4. The government should amendment the Air Service Agreements with other countries, to allow the airline to operate more competitively. The airline should be entitled to preferential use of the ASA rights for a predefined stipulated period of time. This would ensure a failsafe, sustainable, business plan for the airline.

Biman should not only prepare a survival plan, but also a sustainability plan. It should lose much of its manpower weight by means of mutual agreement with the employees. It should also find a way to pay off, over a period of time, the outstanding fuel bills with Bangladesh petroleum Corporation amounting to approximately TK 1000 crore. We have told that Bimans Authorized Capital is TK 750 crore, of which so far approximately TK 382 crore has been paid up by the government. We have also told that the government owes Biman an amount to the tune of TK 600 crore as subsidies for the operation of VVIP flights over the years. But mostly is that the government did not keep their promise.

History: With just four of the nine wide-body aircraft operational, Biman is faced with severe capacity shortage, which is allowing international carriers to take away whatever passenger market Biman is left with. The airline should immediately be allowed to lease four Boeing 777-200ER/300ER or Airbus A330-200/300 aircraft for operations to the Middle-East and Europe, and three Boeing 737-800 or Airbus A320 aircraft for domestic and regional routes. Sticking with either one of the manufacturers would be beneficial for negotiating prices. These leased aircraft should serve Biman until 2014 when the new-generation aircraft such as the B787 or the A350XWB should replace the B777 or A330s. The orders for the new-generation aircraft should be placed now in order to receive them in time in 2014, and both Boeing and Airbus would be glad to arrange at least 80 percent of the financing required if the government is convinced to issue a sovereign guarantee in their favor. The remaining 20 percent can come from nationalized commercial banks as well as from private commercial banks.

Developing process: It contains five factors. These are as follows:-

1. Strategy2. Work3. People4. Formal organization5. Informal organization

Strategy: Strategy mean the long term planning. And long term planning is better for organization. Because in doing long term planning we get the scope of accessing future condition. Biman should adopt a long-term business plan. Biman should be able to prepare a sustainable business plan for itself for the next 20 years. Once that is in hand, the government should transfer all liabilities up to that point of time into a block account. It should then release at least 51 percent shares for offering to all capable airline investors locally and internationally, or release the 51 percent shares through IPO after turning Biman into a public limited company. The government should also be determined to let go the remaining 49 percent of the shares once the airline can demonstrate self-sustainability without any more government support, until which time the government shall also be entitled to the dividends for its 49 percent stake holding.

Work: The tasks people perform to create products & service markets. Here, in case of our Biman the work contains the task that people are usually conduct to develop there services and earning profit through strong organizational framework. Workings are include restructuring routes & pricing & streamline marketing processes, dividing all the works into different sector & expatriate one.

People: Management needs a large number of people and they must be skilled, knowledgeable, experienced about the related task. We hear so much about national security these days; especially about the National Security Council & Civil aviation & air transportation are the part of national security. At times when the RMG industries require urgent shipment to meet the deadline, air transport is the obvious choice.

Formal organization: Biman was always with the ministry of Civil Aviation & Tourism while the managing Directors were appointed to take the daily heat, & simply execute decisions imposed by the ministry. This must change once and for all. The MD should be appointed for a minimum & renewable period of five years to achieve a practical set of objectives. Now at that moment the Biman board of directors now comprises secretaries of the Cabinet Division and the ministries of energy, commerce, finance, civil aviation, and foreign affairs. The six secretaries and a joint secretary to the civil aviation ministry have been made seven shareholders of the new PLC. Under the PLC arrangement, the cabinet secretary is the first chairman of the PLC and the present MD of Biman is its CEO as well as MD. The MD must try to maintain his transparency. His actions must be accountable to the restructured Board of Directors, and to the satisfaction of the board & upon acceptable success of attaining the objectives, He should not be wasting four hours a day on an average in going to and coming back from the ministry, which has been the case in Biman for long. The Ministry may only be furnished

with periodical reports on progresses made, and may only interfere and consulted with in case of significant issues where the government is or ought to be involved. A suitable strategy shoud take to compete with other airlines, and an overhauling of the top management. The management must have the freedom to plan and execute and, if Biman has to remain in the public sector, the board members should be carefully chosen so that they are committed and spare enough time to give policy guidelines, oversee the affairs and hold the management accountable.

Informal organization: An organization consists of management, employees, lots of rules and regulation with internal organizational politics. Internal politics can create a labor union. Basically these labor unions are developed for achieving the labors basic needs in a proper way and for entirely fulfilling all the needs. But the management should give emphasize also on controlling the labor unions in a better way. Management can restrict union activities for a stipulated timeframe. As of year 2000, Biman had as many as 10 labor unions with the Bangladesh Biman Employees Union acting as the collective bargaining agent. While we are not suggesting a complete ban on union activities, we firmly believe that certain rights should be restricted for the stipulated timeframe that it may take for Biman to go through the restructuring process. It includes the organizations culture, informal rules and understandings, & how things really work. It’s important to give concentration on informal organization while making plan for formal organization. Because, the informal organization consists of peoples understanding the things in a better way by making discussion about the topic and idea. People can their own view, perception, realization, working pattern etc with each other. And these things are important for each organization because it has a great as well as positive impact in development of organization. On 27th September 2005, Biman's employees went on a strike demanding a pay-hike, which had seized flight operations and handling in all of the country's airports for nine hours, leaving thousands of passengers suffering. While raising legitimate demands can be well within the rights of any labor union, we are strongly against the idea that they may be allowed to hold passengers and airlines as hostage, and damage the country's image internationally through such an appalling act of irresponsibility.

Conclusion: For Biman to be profitable airline, there has to a strategy suitable for Biman to compete with other airlines and a overhauling of the top management. The management must have the freedom to plan and execute and if it has to remain in the public sector, the board members should be carefully chosen so that they are committed and spare enough time to give policy guidelines, oversee the affairs and hold the management accountable. The rationalizing of the fleet, manpower strength and distribution and a corporate vision must be drawn up so that goals of departments can be drawn up. Any attempt to privatize Biman will face opposition but there is no second option. To create an efficient and dynamic airline, Biman has to reinvent itself; take advantage of IT to create a modern workplace conducive to efficient management and availability of real-time information. A system of accountability and flow of information throughout the organization is crucial for its wellbeing and Biman is lacking in this regard. We just tried to give a suggestion what will be truly effective for our Biman.