Bangladesh to sign $3.7 bn deal with Boeing: state media

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DHAKA: Bangladesh is set to sign a landmark $3.7 billion agreement with Boeing on Thursday to acquire 14 new aircraft over the next decade.

This deal, described as the ‘biggest modern fleet expansion’ for national carrier Biman Bangladesh Airlines, was negotiated as part of a strategic trade arrangement with the United States to reduce heavy tariffs on Bangladeshi garment exports.

The acquisition includes a mix of long-haul and short-haul jets: eight Boeing 787-10 Dreamliners, two 787-9 Dreamliners, and four 737-8 MAX jets. While the initial proposal involved 25 aircraft, the final number was scaled back to 14.

This move has caused friction with European competitors, as Bangladesh had previously been in talks with Airbus. By choosing Boeing and increasing imports of U.S. commodities like wheat and cotton, Dhaka successfully lowered threatened U.S. tariffs from 37% down to 20%.