Uganda seeks USD340m For Uganda Airlines Planes

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The Uganda government has said it needs 340 million U.S. dollars to purchase six passenger aircrafts as the country pushes to revamp the national carrier before the end of this year.

Bageya Waiswa, permanent secretary ministry of works and transport, told reporters late on Wednesday that the government has already paid a commitment fee of 1.2 million dollars to the manufacturers, Bombardier and Airbus.

“We have been to Bombardier to look for short range aircrafts and also we have been to Airbus to look for two long range aircrafts,” Waiswa said, noting that the short range aircrafts will be four.

The government said in May it will purchase four Bombardier CRJ900 passenger planes from the Canadian Bombardier Aerospace and two wide-body Airbus A330-200 aircraft.

“We have made our request to the ministry of finance to start the process of securing loan financing for the aircrafts and once the arrangements are in place, we shall go ahead to negotiate the purchase agreement,” he added.

Uganda Airlines, the national carrier, has been grounded for nearly two decades after racking up debts of more than 6 million dollars.

The country’s President Yoweri Museveni has argued that it is a shame for the country not having a national airline.

There has been debate over the commercial viability of revamping Uganda Airlines in the face of stiff competition from other airlines operating in the region.

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6 thoughts on “Uganda seeks USD340m For Uganda Airlines Planes”

  1. There is no quick returns on Airline business even for aggressive companies and not the Uganda airlines that failed to repay the 6m$ it owed to its debtors. US$340m is just to feed few jobless clans and families to the detriment of the bigger population.

  2. The government of uganda does not need to invest in an airline. The era of national flag carriers is gone. All the country needs now is to establish international airports and private or foreign airlines will bring services even much cheaper than we see today. I can discuss more if given opportunity.
    Stephen Rugumambaju
    MA Tourism Management (University of Westminster London)

  3. As already mentioned by actual experts, this move is insanity. They don’t have any practical processes in place, no experience and what about Uganda’s CAA? The failure of the Ugandan CAA in eyes of the ICAO was the reason why Air Uganda ended operations in 2014. Were those issues even addressed by now? How about using that money to create better airport infrastructure, so government officials can use cheap flights to get places in Uganda, instead of relying on expensive helicopter rides?

  4. ITS OK TO HAVE THEM BUT NOT ON BORROWED MONEY ,IT WILL END UP IN A MESS,TRUST ME . ANM GOOD AT THINGS TO DO WITH AIRCRAFT.CAA HAS STANDEREDS THAT THEY HAVE TO FOLLOW MY DEAR AS WISE ITS WASTED MONEY ON THE EXPENSE OF TAX PAYER.

  5. IT DOESN’T MATTER WHAT IT TAKES BUT ALL WE NEED AS UGANDANS IS TO HAVE OUR OWN AIRLINE SERVICES TO EASE THE BURDEN UGANDANS HAVE GONE THROUGH TRAVELING ABROAD LEAVE ALONE THE EXTORTIONS WE HAVE UNDERGONE THROUGH

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