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Politics lead to Air Uganda's demise

21 Sep 2016 - by Chana Boucher
Comments | 0

AFTER months of being

grounded, Air Uganda

has announced that it will

not be resuming operations,

signalling the end of its time in

Africa’s skies.

The airline’s flights were

first suspended in June by

the Ugandan Civil Aviation

Authority, which said the

carrier needed to reapply for

its Air Operator Certificate

before it could resume

flights. Now, however, more

than three months later, a

spokesperson for the airline,

Rod Murphy, told TNW that

Air Uganda’s shareholder (the

Aga Khan Fund for Economic

Development) had “had

enough of African politics”.

According to a statement by

Cornwell Muleya, ceo of Air

Uganda, an International Civil

Aviation Organization audit

revealed shortcoming in the

CAA’s oversight and regulatory

capacity, which resulted in

the organisation withdrawing

AOCs for all international

commercial air operators

registered in Uganda. He said

this required the airline to

cease operations and incur

“massive financial losses on a

daily basis”.

Further, he said the airline’s

aircraft lease agreements

required the airline to continue

flying for the aircraft to remain

on lease to Air Uganda.

“The extended period of the

aircraft remaining grounded

has thus, sadly, triggered

these covenants and Air

Uganda is now contractually

obligated to return the aircraft

to the lessors’ chosen facility

abroad,” Cornwell added.

According to media reports,

the aircraft were transported

to Paris in August.

Meanwhile, airlines outside

Uganda have benefited

from the suspension of Air

Uganda’s flights. Kenya-based

East African reports that, to

counter skyrocketing prices

out of Entebbe, the CAA

granted fifth freedom rights

to Rwandair and Ethiopian

Airlines for flights to Juba and

Kenya Airways was allowed

unlimited frequencies on the

Entebbe-Nairobi route.

Fastjet launched flights

between Dar es Salaam

and Entebbe in September.

When announcing the new

service it said fares offered

by other carriers for flights

into and out of Uganda had

steadily risen since Air Uganda

ceased flying. It said it was

confident that it had a strong

competitive advantage as it

was the only carrier offering

direct flights between Dar es

Salaam and Entebbe.

Air Uganda was launched

in November 2007 and

served a number of East

African destinations including

Nairobi, Juba, Dar es Salaam,

Mombasa, Kigali, Bujumbura,

Kilimanjaro and Mogadishu.

Shortly before the initial

grounding, there were reports

of the airline’s plans to

extend its network to central,

southern and north Africa. 

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