Kampala- Dubai-based fuel supplier MixJet Flight Support has issued an ultimatum to Uganda Airlines, demanding partial payment of at least $6 million out of the $10 million (approximately UGX 37 billion) owed for fuel supplies. The airline now faces the risk of legal action if it fails to meet the 48-hour deadline set by the fuel provider.
The national carrier’s debt to MixJet reportedly 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.
In response to the ultimatum, Uganda Airlines is reportedly evaluating options to resolve the matter and avert potential litigation. The airline has yet to issue an official statement regarding the situation or outline a payment schedule that might satisfy the Dubai-based supplier’s demands.
MixJet Flight Support’s demand underscores the financial strains faced by national carriers in the region, particularly with fluctuating fuel prices and increasing operational costs. Should the issue proceed to court, Uganda Airlines may face legal and operational complications that could impact its future growth.
The aviation sector in Uganda is keeping a close watch on the situation, as any outcomes could set a precedent for other airlines managing supplier debts and maintaining essential service agreements.
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