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Gov’t To Increase Uganda Airlines Budget To Shs120.9bn

Passengers boarding Uganda Airlines’ Airbus aircraft at Entebbe International Airport

Government is set to increase Uganda Airlines budget by Shs34.9 billion in 2024/25 Financial Year.

The budget increase is entailed in the report of the Committee on Physical Infrastructure on the National Budget Framework Paper for the Ministry of Works and Transport.

Tony Awany, the committee chairperson, presented the report before the budget committee on 16 January 2024.

“The Government intends to increase the airline’s funding by Shs34.9 billion, raising the budget to Shs120.9 billion. These resources will be used to cater for payments to the Uganda Civil Aviation Authority, wages, staff training, procuring aviation fuel, insurance cover for aircraft, In-flight catering, and others,” Awany said.

However, Members of Parliament on the Budget Committee asked government to justify the continuous capitalisation of Uganda National Airlines.

“We need to understand the Government investment in the airline; how many shares does the Government have? How much do they intend to invest in the short term, midterm, and long term, and which funding vehicle,” asked Hon. Dickson Kateshumbwa (NRM, Sheema municipality).

Citing the airline’s  alleged inefficiencies, members said government needed to demonstrate the airline’s likelihood of breaking even, as its basis for continuous funding.

“When you talk of flying to destinations such as Dubai, anyone can understand. We want to know what informed the airline to open flights to places such as Abuja,” said Hon. Remigio Achia, the Deputy Chairperson of the Budget Committee.

Achia complained of flight delays, saying he has had up to two hours of flight delays with Uganda Airlines.

It should be noted that Uganda Airlines flies to 13 destinations. Mumbai (India) and Lagos (Nigeria) are the airline’s latest routes having been launched in October 2023. Other routes Dubai, Johannesburg, Bujumbura, Nairobi, Mombasa, Zanzibar, Dar es Salaam, Kilimanjaro, Juba, Kinshasa and Mogadishu.

Taddewo William Senyonyi
https://www.facebook.com/senyonyi.taddewo
William is a seasoned business and finance journalist. He is also an agripreneur and a coffee enthusiast.

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