US-Bangla set to lease 21 Boeing aircraft in $1.11b fleet expansion

US-Bangla Airlines is set to expand its fleet by adding 21 new Boeing 737-8 aircraft through leasing arrangements in 2027, in a move valued at about $1.11 billion that marks the largest fleet expansion undertaken by a private airline in Bangladesh.

The aircraft will be sourced from five of the world's leading leasing companies, according to Kamrul Islam, spokesperson for the airline, who confirmed the development to The Business Standard.

To formally announce the expansion, US-Bangla and Boeing will jointly host an event at Sheraton Dhaka on 29 July. The programme is expected to be attended by Boeing's vice-president, the US ambassador to Bangladesh, senior representatives of international aircraft leasing firms and leading figures from the country's aviation and tourism sectors.

According to a letter sent by the airline to Bangladesh Investment Development Authority Executive Chairman Chowdhury Ashik Mahmud Bin Harun, the induction of the new aircraft will support plans to develop Dhaka, Chattogram and Sylhet into regional aviation hubs.

Alongside expanding operations from Dhaka, the airline intends to launch international services from Chattogram and Sylhet to destinations across South Asia, Southeast Asia and the Middle East.

"This is not merely a business expansion. The addition of these new aircraft represents a landmark investment in Bangladesh's aviation industry," Kamrul said.

US-Bangla currently operates a fleet of 25 aircraft, making it the country's largest airline by fleet size.

Earlier in April, state-owned Biman Bangladesh Airlines signed a $3.7-billion agreement with Boeing to purchase 14 aircraft to expand its fleet to 47 aircraft by 2035.

Industry sees major boost for aviation sector

Kazi Wahidul Alam, an aviation expert and former Biman board member, described the move as one of the most significant fleet expansion decisions in Bangladesh's aviation history.

"No government or private airline in Bangladesh has previously undertaken such a large-scale fleet expansion at one time. This is a remarkable achievement for US-Bangla Airlines and clearly reflects its long-term vision," he said.

Wahidul added that a broader international network could have positive implications for the economy by boosting tourism, exports and foreign investment.

Industry observers say Bangladesh's international passenger market remains heavily dependent on foreign carriers, resulting in a considerable outflow of foreign currency each year. 

They believe that strengthening the capacity of local airlines could enable domestic operators to capture a larger share of international routes, reduce reliance on overseas carriers and retain more foreign exchange within the country.

Experts also noted that the additional aircraft would require a substantial workforce, including pilots, aircraft maintenance engineers, cabin crew, dispatchers, ground-handling personnel and other technical staff.

The expansion is therefore expected to create thousands of jobs and widen career opportunities for young Bangladeshis, particularly in pilot training and aircraft maintenance engineering.

Wahidul said operating the enlarged fleet would require a significant increase in skilled personnel and support staff, creating new employment opportunities across the aviation sector.