Air Uganda Suspends Operations Indefinately
Air Uganda has suspended its operations indefinitely citing prolonged grounding, which it says has affected key contracts.
This is contained in a July 18th statement signed by Conwell Muleya, the Chief Executive Officer Air Uganda, a copy of which, Red Pepper Online has seen.
Muleya states that on June 17th, 2014 Civil Aviation Authority withdrew Air Operators Certificate for all commercial operators registered in the country, without consulting the affected parties.
According to Muleya, Air Uganda, which is the only scheduled passenger airline affected, have inevitably suffered the greatest damage.
He says each company was required to submit a fresh application for the Air Operators Certificate and in the meantime cease operation, which forced them to incur heavy financial loses and suffer reputational damage.
Muleya says Air Uganda has been working with CAA to since June 17th to implement the revised procedures required by the International Civil Aviation Organization to be reinstated in a timely and expeditious manner in vain.
He explains that unfortunately 31 days have elapsed and recertification is several weeks away.
Muleya argues that the prolonged grounding has in turn affected key contracts at Air Uganda.
Particularly, affected are covenants in the lease agreement, which state that the air craft can only remain in Uganda if it continues flying.
He however, says the extended period of grounded has triggered the covenants, and Air Uganda is contractually required to the lessor’s chosen facility abroad.
Muleya says the prolonged inability to generate revenue has forced the board of directors to suspend indefinitely the operations of Air Uganda in the country.
4 thoughts on “Air Uganda Suspends Operations Indefinately”
“He says each company was required to submit a fresh application for the
Air Operators Certificate and in the meantime cease operation”. How come that it is only two companies that were asked to cease operations in the meantime? And where is parliament in all this? I am not an expert here. How come that the exercise of verifying applications is taking long? I tend to sense some foul play or politics in this. Although safety is a priority, it is important to expedite the process of verifying applications.Ugandans are going to lose jobs as a result of Air Ugandan’s closure
Sad to see this happen! I thought the Air carrier was picking up but what a loss? This was part of our national institution in transport sector! Can’t we reduce fighter jet in order to finance Uganda Air to operate? Our government rescued Basajjabalaba and has not repaid but what about this which goes to the heart of people travelling to Rwanda,Kenya,Sudan and Tanzania? Surely Uganda can not go on abandoning its duties!i
All our institutions have been corroded or stolen since 1986. Why are you so surprised??
Where is the nationalism of our leaders? Former President Amin showed he was a nationalist in only eight years in several arenas. Amin created Uganda Airlines from nothing, promoted boxing to international respectability, catapulted Uganda Football to the African Nations cup finals in Kumasi Ghana…..etc,. ..Now what is there for this government to show for the 30 years in power? Besides selling public assets left behind by Amin what has this government done for Uganda? Uganda Air is our flag carrier, though privately owned, our pride as a nation, if it dies where is the nationalism of our leaders?
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