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Uganda to borrow heavily to revive national airline

Watchdog Uganda by Watchdog Uganda
7 years ago
in News
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By our reporter

Last week, Uganda Airlines, the national carrier of Uganda signed a firm order with Airbus and Bombardier Commercial Aircraft for two A330-800neo and four new bombardier CRJ900 regional jets respectively.

Uganda Airlines plans to use the A330-800neos to build its international long-haul network with the aircraft offering cutting-edge technologies. The aircraft will feature a three-class cabin layout comprising 20 Business, 28 Premium Economy and 213 Economy seats.

The bombardiers will be used for regional air travel and they will be operated upon in dual-class configuration with 76 seats, including 12 first class seats.

However it has come to our understanding that government is planning to borrow from Canada and European Credit Agencies in order to procure the six aeroplanes.

According to Bloomberg.com, Uganda will liaise with manufacturers to access credit at concessional rates.

Uganda’s working figure for each Bombardier jet including training its crew is $27.7 million, while that for each Airbus is $108 million, he said.

The country will get credit for the Bombardier jets from a Canadian agency, while Airbus purchases will be financed by agencies in France, UK and Germany, said Bageya Waiswa, the Works and Transport Ministry Permanent Secretary

Works and Transport Minister Monica Ntege Azuba told the press on Tuesday that delivery of the first CRJ900 jet is expected in January and the rest by the end of April whereas Long-haul Airbus craft will be ready in 2020.

Uganda Airlines started operations in 1977 and was liquidated in 2001 under heavy debt. The government says its revival is aimed at cutting travel costs for Ugandans by improving connectivity and boosting tourism.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
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