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Uganda goes shopping for planes in bid to revive national carrier

Friday December 23 2016
airline

Uganda plans to lease at least six aircrafts, four for short-haul regional flights and two for long-haul, in bid to revive the national carrier. GRAPHIC | The EastAfrican

Uganda is determined to have its national carrier flying again in 2017. Government officials have set August as the month Uganda Airlines will flap its wings again after more than 16 years of being rendered inoperable and in some kind of “abeyance”

The Africanreview has learnt that negotiations with Canadian aircraft manufacturer Bombardier and France’s Airbus for lease of planes to make the initial fleet were in advanced stages.

“Reviving the national carrier is a process, so we must move carefully and follow every step properly, but I can assure you, a decision was made and our plans are now in advanced stages. Uganda Airlines will be flying again next year,” Works and Transport State Minister Aggrey Bagiire said on Thursday.

Sources privy to the planning say the government will initially lease at least six aircraft, four for short-haul regional flights and two for long-haul.

Loss of revenue

Regional carriers, particularly Kenya Airways which has for the past 15 years operated Entebbe like a domestic hub, are likely to suffer loss of revenue as Uganda seeks to claw back regional routes to kick-start an ambitious global outreach.

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Others likely to be affected are RwandAir, Ethiopian Airlines and South African Airlines.

“We are going through the protocols, processes and now a Cabinet paper has been developed. Once Cabinet adopts it, the paper will be presented to Parliament for approval and financial appropriation. We intend to lease and start (flying) once people know that we are flying again, then in a period of about two years, we shall purchase our own aircraft,” Mr Bagiire said.

Easier option

He added that leasing was cheap, but only in the short-run. “It becomes expensive in the long-run, but to start us off, that is the easier option.”

Captain Francis Babu, an aviation expert says there are two types of leases which Uganda can look at: Outright purchase and lease purchase. “In this case I would suggest a lease purchase because it’s affordable.”

“Lease purchase requires between Ush200 to 300 million ($56,000 to $84,000) and there is an option of changing the fleet every after three or five years, which I’m certain Uganda can afford at the moment,” he added.

But Captain Mike Mukula says though lease is convenient in the short term, it becomes expensive long-term. He added that leasing should only be used as a stop-gap measure while a more lasting solution is found.

Team of experts

“We have gone to Airbus and Boeing; we are going to all of them so as to prepare and also budget accordingly,” said Mr Bagiire.

But a knowledgeable source said Bombardier’s CRG 900 Generation Next, fitted with modern amenities like on-board Wi-Fi and the Airbus A320/200 are early favourites, with the Boeing 737 Generation Next being considered later.  

The government is in the first quarter of next year expected to announce a launch team of experts and a board for the national carrier, which will be charged with establishing a management team.

“We want to ensure that politics is totally out, I want to travel Uganda Airlines not as a minister but like you a journalist,” Mr Bagiire said.

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