Uganda Airlines : Have we learnt any lessons?

After 15 years without a national carrier, it is delightful to learn that government now has a master plan to revive Uganda Airlines after a weak financial muscle forced it to collapse in 2001.
However, critics – citing examples of the struggles Kenya Airways and RwandAir, are facing have already expressed fear that the Shs1.4 trillion venture could be a waste of time.

Having a national carrier comes with a number of benefits.
The Shs1.4 trillion venture won’t be in vain since it would put Uganda’s export sector at a vantage point.

A national carrier provides direct and indirect employment; it promotes tourism by facilitating transportation for tourists from across the world, and fosters foreign exchange and foreign direct investment.
Also, having a national airline complete with the country’s flag up in the sky paints a picture of a strong sovereignty and national pride.

Given all the above, it is obvious that a national airline is important. However, let’s not forget to ask tough questions about what actually killed Uganda Airlines and why today, national carriers such as Kenya Airways find themselves flying in turbulent financial weather.
According to a report this newspaper has seen, the government is counting on raising passenger numbers passing through Entebbe International Airport. The estimate is that at least 1.6 million passengers used Entebbe International Airport in 2015 and of these, 60 per cent were considered to be Ugandan citizens. Additionally, the two airbuses are expected to transport cargo, which would boost Uganda’s cargo haulage and exports.

Besides the speculation, studying the dynamics of the aviation industry is vital. It would be prudent to find out why, for example, Ethiopian Airlines is making strides. A research report – Why Ethiopian Airlines became successful and the lessons for other public companies - presented to the Addis Ababa University in 2012, hints on the tricks. It cites the credibility of Ethiopian Airlines training facility, the proper utilisation of information and communication technology at organisational level, the safety record of the airline and a dedication of the human resource, and promotion and discipline in financial management, among others, as some of the factors for the great performance of Ethiopian Airlines.

As we move to resurrect the national carrier, we must arm ourselves with better strategies for managing such an ambitious venture or else we will plunge back into the embarrassing failure of 2001 and again, waste taxpayers’ money.

The issue: Uganda Airlines.
Our view: As we move to resurrect the national carrier, we must arm ourselves with better strategies for managing such an ambitious venture or else we will plunge back into the embarrassing failure of 2001 and again, waste taxpayers’ money.