Kathmandu. Bangladesh is set to sign a $3.7 billion mega deal with American aircraft manufacturer Boeing to modernise its national carrier in a bid to modernise its national carrier. Under this, 14 new aircraft will be purchased in the next decade, which is expected to significantly expand the country’s air service.

According to the state-run BSS news agency, the deal is an important part of the trade and tariff agreement with the United States. The plan will ensure the largest modern fleet expansion in the history of Bangladesh Airlines.

Under the proposed deal, eight Boeing 787-10 Dreamliners, two Boeing 787-9 Dreamliners and four Boeing 737-8 MAX aircraft will be procured. A formal signing ceremony is scheduled to be held in Dhaka on Thursday evening.

Bangladesh Airlines currently has a fleet of 19 planes, of which 14 are owned by Boeing. The new procurement is expected to enhance the company’s service capacity, efficiency and international competitiveness. Political and economic changes have also been added to the background of this purchase decision. After the political turmoil of 2024, the interim government agreed to the purchase in August 2025. A new government was elected in February 2026.

Bangladesh went ahead with the agreement to balance its trade with the United States and avoid potentially high tariffs. As the world’s second-largest garment producer, textiles and readymade garments account for 80 per cent of Bangladesh’s total exports, with the US accounting for about 20 per cent.

Dhaka had proposed to buy Boeing aircraft and increase US imports of wheat, cotton and oil after US President Donald Trump threatened to impose higher tariffs on Bangladeshi goods. Initially, it was proposed to buy 25 aircraft, but later it was reduced to 14.

The decision affects a potential deal with European aircraft manufacturer Airbus. Ongoing talks with Bangladesh for the sale of Airbus aircraft have been affected after the deal.

The Trump administration had threatened to impose tariffs of up to 37 percent on Bangladeshi cotton products, which has been reduced to 20 percent after a recent agreement. This has given some relief to Bangladesh’s export-oriented economy.

The agreement is also expected to stabilise Bangladesh’s garment industry, which is in the process of reviving after the 2024 unrest.