Uganda Airlines could be back in the sky by September 2018, as the government seeks to resurrect the national carrier. Already, a multi-million plan has been set up by the Parliament to ensure the carrier returns to its former glory. The company has had a rough time over the years, with plans to bounce back sooner than expected not proving to be fruitful.
The government is seeking some $388 million financial inclusion that will set the pace for the reviving process. A number of changes are forecast to take place that will facilitate the re-launch of the airline. With the aviation sector in Africa looking promising, Uganda must be in desperate need to revive its company to be a beneficiary of the industry.
The Cabinet has approved the national carrier’s proposal to kick off flights from Entebbe across the East African region, as a quick start. The green light would be accompanied by future flights to the international market, as per the details of the company. The former flag carrier of Uganda has not been able to make an impact at home in the recent years owing to business storms.
The chunk plunk of financial need will be split into a three-year era, with the government planning to raise $70 million in four stages. The first investment would come in handy from the financial budget that is set to be released soon. $318 million that is needed to add to the fleet of aircraft will be acquired with different financial avenues.
With an increase in the aircraft number, there will be a tight schedule for the company with considerable number of flights to and from the country. This will be good news to businessmen and women who could see an alternatively affordable transport means to catch up easily with their schedules.
This will open avenues for businesses to grow with the linked cities, improving the trading activities. Uganda can hope for growth in export receipts with a better economy to remain competitive both regionally and internationally. The currency would have an impetus to regain its strength in the foreign rates. Prices of goods and services would be affordable with a lower inflation.
Most of these funds would come from external sources as believed by the government to implement the plan. It could be a challenging plan that will increase the dependency of the country to the lender, which weakens the African Union bloc. The availability to payback the loans, of course, with added interest could be a mountain to climb with other projects in need of funds as well.
The airline was grounded fifteen years ago. The plan proposes an initial a fleet of four Bombardier CRJ900 and two wide-body A330-200 aircraft.