Uganda cabinet approves plan to revive national airline

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Uganda’s cabinet had approved the proposal to revive the national carrier with keenness on getting a transactional adviser to guide the process and evaluate the project’s operational framework, according to a report by the Daily Monitor.

The transactional adviser will conduct a comprehensive study including evaluating the nearest routes the national carrier can fly, what resources are required and fully understand what it will take.

During his inaugural address to Cabinet last year, President Museveni said the lack of a national airline is “a big shame,” and told his new ministers that “in these five years, Uganda will encourage the setting up of a national airline.”

However according to the Daily Monitor report, the Uganda Airlines is not about to fly any time soon as had been hoped owing to financial setbacks and other structural challenges.

The National Planning Authority, which, together with ministry of Works, is spearheading the project, had last year indicated that the initial capital expenditure required to fly Uganda Airlines again is at $400 million.

Uganda used to have a national airline, established in May 1976 under the Idi Amin government. However, Uganda Airlines was liquated in 2001 over heavy debts that stood at a tune of more than $6 million (about Shs21 billion at today’s exchange rates).