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Suspension of Air Uganda triggers air fare increases

Saturday June 28 2014
DreamlinerEntebbe5

An Ethiopian Airlines plane flies out of Entebbe. Carriers have increased fares after Air Uganda’s flying ban. Photo/Morgan Mbabazi

The cost of air travel within the region has risen following the suspension of operations of three airlines by Uganda’s Civil Aviation Authority (CAA).

Barely two weeks after Air Uganda was grounded pending reapplication for operation certificates from the regulator, air ticket prices have more than doubled on some routes and queues at bus terminals are longer.

The Cabinet and parliament have expressed concern over the suspensions that have led to cancelled trips and passengers seeking alternative means of transport.

The Civil Aviation Authority suspended Air Uganda, Transafrik Uganda Ltd and the Ministry of Defence-owned Uganda Air Cargo Corporation, on June 17. The airlines were suspended after a review of their systems, structures and operations by the International Civil Aviation Authority (ICAO).

READ: Three airlines suspend flights in Uganda over licences

Air Uganda chief executive officer Cornwell Muleya told The EastAfrican last week that his company was “doing everything possible to resume operations,” describing CAA’s action as unnecessary and putting an extra financial burden on passengers.

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He said last year Air Uganda passed the International Air Transport Association (IATA) operation safety audit programme, and received a certificate that is valid until September 30, 2015.

After certification, Air Uganda was recognised as an IATA member on May 22.

“They are just hiding behind the airline,” Mr Muleya said. “The problem can only be with CAA’s own failures and how Uganda fares in terms of safety regulation.”

He said a significant safety concern does not necessarily indicate a particular safety deficiency in the air navigation service providers, airlines, aircraft or aerodrome, but rather indicates that the state is not providing sufficient safety oversight to ensure effective implementation of applicable standards of ICAO.

CAA’s letter suspending Air Uganda partly admits the regulator’s failures. The letter, signed by CAA managing director Rama Makuza, points at “insufficient or lack of industry surveillance to enable the Authority to identify shortcomings and the operator to correct non-compliances.

“The industry was observed to be complacent and lacked commitment to effect and implement the terms of approval.”

On Friday, parliament summoned CAA, but the regulator did not turn up. We could not reach CAA for a comment.

A Cabinet document, which The EastAfrican has seen, shows that the government’s concern was triggered by an uproar at the steep rise in air fares the suspension of Air Uganda has caused.

The document shows that an economy class ticket on the Entebbe-Juba route, which Air Uganda operated three times on Wednesday and Friday, and twice on the other days (1,600 seats per week), has risen from between $578 and $678, to $1,335 on Kenya Airways, while RwandAir charges $803, up from $475, $505 and $535.

Air Uganda also operated the Entebbe-Dar route twice daily, in collaboration with Precision Air (1,400 seats.)

Economy class fares on this route have gone up from $519, $569 and $619 to $654 and $879 on Kenya Airways, and RwandAir has raised the fare for this route as well as Entebbe-Kilimanjaro by $50 on one of its three flights, previously at $426, the other two remaining unchanged at $446 and $466.

Passengers from Entebbe to Bujumbura, where Air Uganda operated five flights weekly (500 seats), will also dig deeper into their pockets to afford the air fare -- up from $515, $565 and $615 on Kenya Airways to $1,065 for economy class.

RwandAir has raised the fare from $417 and $447 to $461, with its third fare of $477 remaining unchanged.

On Entebbe-Mombasa, where Air Uganda offered 500 seats a week, KQ now charges $672 and $1067, up from $417, $477 and $527, while RwandAir charges $577, up from $367, $387 and $407.

Also stranded are passengers on the Entebbe-Mogadishu run, where Air Uganda operated four per week — or 400 seats.

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