Frequency before expansion : Strategic imperative for Biman

Dhaka : In the airline business, success is not measured by the number of destinations displayed on a route map. It is measured by how effectively an airline serves those destinations. Yet many airlines, particularly state-owned carriers, often fall into the temptation of announcing new routes as a symbol of growth while overlooking a fundamental principle of commercial aviation: frequency drives profitability.

Aviation experts have long used a simple but powerful expression: "A once-a-week flight is no flight, twice-a-week is a ferry service, three flights are manageable, and four or more frequencies begin to create a commercially viable market." Though informal, this saying reflects decades of experience in airline network planning and route management.

As Biman Bangladesh Airlines celebrates more than fifty-five years of operations, it may be time to revisit its network strategy and ask a critical question: Should the national carrier continue expanding its route network with limited frequencies, or should it focus on strengthening services in markets where it already enjoys substantial passenger demand and a natural competitive advantage?

Value of frequency

Passengers today demand flexibility. Whether they are migrant workers travelling to the Middle East, students heading to Europe, business executives flying to Japan, or expatriate Bangladeshis visiting family from Canada and the United Kingdom, they want options.

A passenger rarely chooses an airline simply because it serves a destination. More often, the decision is influenced by schedule convenience. Daily or near-daily flights allow travelers to depart and return according to their needs. Conversely, an airline operating only once or twice a week forces passengers to adjust their plans around the airline's schedule.

• ·       This is why frequency matters.

• ·       Higher frequencies provide:

• ·       Greater flexibility for passengers.

• ·       Stronger market visibility.

• ·       Improved customer confidence.

• ·       Better connectivity.

• ·       Increased corporate and business travel.

• ·       Higher passenger retention.

• ·       Enhanced cargo opportunities.

In many markets, frequency is a stronger competitive advantage than price.

Biman's captive market advantage

Few airlines enjoy the natural market strengths available to Biman Bangladesh Airlines.

Millions of Bangladeshis live and work abroad. Large expatriate communities are spread across Saudi Arabia, the Uni-ted Arab Emirates, Qatar, Oman, Kuwait, Bahrain, the United Kingdom, Italy, Canada, Malaysia, Singapore, and many other countries.

These communities create a steady stream of traffic throughout the year. Unlike many foreign airlines that must compete aggressively for passengers, Biman already enjoys a strong brand connection among Bangladeshi travelers.

This captive market should theoretically provide a strong foundation for sustainable growth.

Yet the airline has often struggled to translate this advantage into dominant market share.

One reason may lie in its frequency strategy.

Recent route developments

In recent months, Biman has relaunched or expanded services to several important international destinations.

The airline has resumed:

• ·       One weekly flight to Tokyo.

• ·       Two weekly flights to Manchester.

• ·       Three weekly flights to Rome.

• ·       Three weekly flights to Toronto.

The return of these destinations is undoubtedly welcome. However, questions remain regarding the commercial viability of operating such strategically important routes with limited frequencies.

Tokyo is one of Asia's largest business and economic centers. Bangladesh's economic relationship with Japan continues to expand through trade, investment, infrastructure development, education, and tourism.

Manchester serves a large Bangladeshi population concentrated in northern England.

Rome has become one of the most important European gateways for Bangladeshi migrant workers and expatriates.

Toronto serves one of the fastest-growing Bangladeshi communities in North America.

In each of these markets, passenger demand appears capable of supporting additional services. Yet limited frequencies may prevent the airline from fully capturing available traffic.

Hidden cost of  low-frequency operations

At first glance, operating one or two flights a week may appear financially prudent. Fewer flights should mean lower costs. However, airline economics are rarely that simple.

Many of the costs associated with operating an international route remain virtually unchanged regardless of frequency.

Station costs

Every overseas destination requires a local operational presence.

An airline typically maintains:

• ·       Airport offices.

• ·       Sales and reservation facilities.

• ·       Administrative support.

• ·       Station management.

• ·       Customer service personnel.

• ·       Marketing and promotional activities.

Whether Biman operates one flight a week or fourteen flights a week, most of these costs remain the same.

Consider a hypothetical station with annual operating expenses of USD 1 million.

If the route operates only once a week, the station supports just 52 flights annually. The station cost alone amounts to approximately USD 19,000 per flight.

However, if the same station supports daily operations, the cost drops to less than USD 3,000 per flight.

The station infrastructure remains identical. The difference is simply the number of flights sharing the expense.

This is one of the key reasons why low-frequency routes often struggle financially.

Crew layover costs

Crew utilization is another area where low-frequency operations become expensive.

A long-haul flight may require:

• ·       Flight deck crew.

• ·       Relief pilots.

• ·       Cabin crew.

After arrival, crew members often need mandatory rest periods before operating the return sector.

When flights are infrequent, airlines frequently incur:

• ·       Hotel accommodation expenses.

• ·       Daily allowances.

• ·       Transportation costs.

• ·       Administrative support costs.

The problem becomes more significant when crew members remain idle during extended layovers.

An airline pays salaries, allowances, and accommodation expenses while generating no revenue during that period.

Higher-frequency operations allow more efficient crew scheduling, shorter layovers, and better productivity.

In simple terms, airlines earn money when aircraft and crews are working-not when they are waiting.

Aircraft utilization: Key to profitability

Perhaps the most expensive asset owned by an airline is its aircraft.

A Boeing 787 Dreamliner, for example, represents an investment worth hundreds of millions of dollars.

Aircraft ownership, lease payments, insurance, depreciation, and financing costs continue whether the aircraft is flying or parked.

Every hour spent on the ground reduces earning potential.

Successful airlines therefore strive to maximize aircraft utilization.

Higher frequencies create more efficient rotations, stronger connectivity, and improved revenue opportunities.

Low-frequency operations often produce scheduling inefficiencies that reduce overall fleet productivity.

Marketing costs do not decline

Another common misconception is that fewer flights reduce marketing expenses.

In reality, airlines launching a route must still invest heavily in:

• ·       Travel trade engagement.       

• ·       Advertising campaigns.           

• ·       Digital marketing.

• ·       Corporate sales activities.

• ·       Public relations.

• ·       Airport branding.

The promotional effort required to support one weekly flight is often similar to that required for daily service.

As a result, marketing expenditure per flight becomes substantially higher when frequencies are limited.

Revenue loss through passenger leakage

Perhaps the most damaging consequence of low-frequency operations is lost revenue.

Suppose a passenger wishes to travel from Dhaka to Toronto on a specific day. If Biman's flight schedule does not meet that requirement, the passenger will simply choose another carrier.

The same applies to business travelers flying to Tokyo or expatriates travelling to Manchester.

Competitors such as Emirates, Qatar Airways, Turkish Airlines, Etihad Airways, Saudia, and others offer daily or multiple daily departures through their hubs.

While Biman may possess the advantage of nonstop service, insufficient frequency often pushes passengers toward alternative carriers.

In aviation terminology, this phenomenon is known as "passenger leakage."

Every seat lost to a competitor represents lost revenue that is difficult to recover.

What successful airlines do differently?

The world's most successful airlines generally follow a common strategy.

Before launching new destinations, they strengthen frequencies on routes where demand is already proven.

Emirates did not become a global airline by opening hundreds of destinations with one weekly flight. It built its network by increasing frequency in profitable markets and creating schedule convenience.

The same principle applies to Qatar Airways, Turkish Airlines, Singapore Airlines, Lufthansa, and many other successful carriers.

Their philosophy is clear: Frequency first. Expansion second.

Strategic opportunity for Biman

For Biman Bangladesh Airlines, the opportunity is obvious.

The airline already has a strong presence and substantial passenger demand in:

• ·       Saudi Arabia.

• ·       United Arab Emirates.

• ·       Qatar.

• ·       Oman.           

• ·       United Kingdom.

• ·       Italy.           

• ·       Canada.

• ·       Malaysia.            

• ·       Singapore.

The infrastructure is already in place. The brand is established. Passenger demand exists.

Instead of spreading resources across numerous low-frequency routes, Biman could potentially achieve stronger financial performance by increasing frequencies in these proven markets.

Additional services to London, Manchester, Rome, Toronto, Jeddah, Riyadh, Dammam, Dubai, Doha, Muscat, Kuala Lumpur, and Singapore would not only improve passenger convenience but also reduce unit operating costs by spreading fixed expenses across a larger number of flights.