Uganda Airlines has no money for ground handling

Last year, Parliament recommended that the national carrier expedites the process of setting up structures for self-handling and managing all ground handling services at Entebbe International Airport.
However, according to the Minsiter of Works and Transport Gen Katumba Wamala, Uganda Airlines is not in position to do this.

Ground handling is a capital intensive investment.

Ground handling
“We have done studies and the project plan has been prepared to ensure self-handling can be implemented at the end of the current contract with a third party service provider who will come on on-board in April 2020,” he says.

“Self-handling will be done in three phases. In phase one, the company will activate self-handling the CRJ900 Aircraft fleet using hired equipment due to the long lead time it takes to acquire own handling equipment,” Gen Katumba says.

During phase two once the company owns and receives its own equipment, it will start self-handling for the CRJ900 aircraft using its own equipment.

However, in phase three, Gen Katumba says the airline will upgrade its capacity for self-handling to include handling capacity for the new Airbus A330-800neo and first fleet will be ready in December 2020 while the second in January 2021. The first international route secured by the airline is Guangzhou.

Unlike other phases, in the third phase Gen Katumba says the airline will be making savings compared to using a third party handler.

“We would have done the ground handling but we do not have the capacity yet we want this to come from our own people. We need to train personnel to handle this,” he says.

Increasing revenue
According to the shadow Minister of Works and Transport, the ministry should have plans to tap into domestic travels to expand their revenue streams. This requires that upcountry aerodromes are improved to encourage domestic flights.

Delay in selecting CEO
Recently, the Uganda Airlines chairman expressed concern over a delayed process in which government is seeking to recruit a substantive chief executive for the national carrier.

However, according to Mr Elija Okupa, the Member of Parliament for Kasilo County, a member of the physical infrastructure committee, says there is need for a substantive chief executive officer to oversee its operations.

“This is an indicator which puts the airline in dilemma especially from the decisions to be made on a daily basis and the Ministry should act accordingly,” he says.

Early this month, Works and Transport Permanent Secretary Waiswa Bageya admitted that whereas the process had delayed, the Ministry was on track and expects to have completed the process of recruiting a consultancy firm by the end of this month.

However, the Ministry of Works and Transport in this financial year 2020/2021 wants Shs11b to capitalise Uganda Airlines.