Despite marathon expansion drive to capture more routes, Uganda Airlines is not paying suppliers this website has learnt.
One such is Dubai-based fuel supplier MixJet Flight Support that has issued an ultimatum to Uganda Airlines, demanding partial payment of at least $6 million out of the $10 million (approximately sh 37 billion) owed for fuel supplies.
According to reliable information Uganda Airline now faces the risk of legal action if it fails to meet the 48-hour deadline set by the fuel provider.
Uganda Airlines debt to MixJet according to key information accumulated over a period of months, prompting the supplier to take a firm stance.
Sources indicate that Uganda Airlines had initially committed to making a partial payment of $2 million, which was expected to ease tensions and keep the airline’s operations unaffected by fuel supply interruptions.
However, the current demand for a more substantial payment comes amid ongoing efforts by the airline to manage financial challenges while striving to expand and streamline its operations. Industry experts believe that any disruptions in fuel supply could have serious implications for Uganda Airlines’ service delivery and reputation, particularly in a competitive aviation market.
Uganda Airlines has failed to respond and avert potential litigation from Dubai-based supplier’s demands.
Efforts to get a comment from yop officials were futile as their personal mobile numbers were switched off.
MixJet Flight Support’s demand underscores the financial strains faced by Uganda Airlines in the region, particularly with fluctuating fuel prices and increasing operational costs.
Uganda Civil Aviation Authority Board Chairman, Steven Kavuma reiterated its commitment to the growth and development of the aviation industry in Uganda.
Uganda Airlines operates thirteen (13) destinations namely: Dubai, Johannesburg, Nairobi, Mombasa, Dar es Salaam, Zanzibar, Kilimanjaro, Juba, Bujumbura, Kinshasa, Mogadishu, Lagos and Mumbai.
Uganda Airlines commenced scheduled operations to Harare, Lusaka and Abuja in September 2024.
“The Authority therefore encourages Ugandan licenced air operators serving domestic and international routes to synergize through airline cooperative arrangements like codeshare agreements and interlining with Uganda Airlines and other international air operators in order to increase air connectivity and stimulate the growth of air passenger and cargo traffic in Uganda,” said Kavuma
According to the acting Director General of the UCAA, Hellen Wenene, the Authority always strives to create a level playing field for all operators, while encouraging fair competition, innovation and consumer protection.
“As you all know, the Authority successfully completed two back-to-back international safety and security audits, the Universal Safety Oversight Audit Programme (USOAP) in September 2023 and the Universal Security Audit Programe (USAP) in Jan-February 2024. Uganda scored above the regional and global average in both audits, an indicator of compliance with the highest standards of safety and security. The Authority will, therefore, continue to urge licensees to be compliant, accountable and ensure that they meet to the required safety and operational standards to uphold the required service delivery,” she said.
In relation to traffic, Entebbe International Airport recorded a total of 226,795 more passengers in the first half of this year (January to June 2024) than was recorded in the same period of January to June 2023. The airport recorded a total of 1,069, 224 international passengers, 527, 692 arrivals and 541532 departures (Jan-June 2024) compared to a total of 842,429 (Jan-June 2023) which is an average of 5,886 passengers per day.
