Uganda Airlines is under fire from Parliament for relying on outdated Bombardier aircraft models, a decision MPs say is crippling the national carrier’s finances and operational efficiency.
The criticism came as the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) interrogated CEO Jennifer Bamuturaki and her management team over the airline’s Shs 237 billion loss in the 2023/2024 financial year.
“The largest contributors to our losses this financial year are high fuel costs, depreciation, and crew allowances. These have significantly affected our operational performance,” Bamuturaki told the committee, defending the airline’s record.
COSASE Chairperson Medard Sseggona said the choice to operate older aircraft was draining resources due to high maintenance and spare parts costs.
“There is no production. When there’s no production, it means I won’t have spares. I’ll acquire them at a high cost possibly even used spares and we all know how sensitive that is in the aviation industry,” Sseggona said.
The committee resolved to summon the individuals who approved the procurement of the Bombardier fleet to justify their decision. “Matters of accountability don’t expire when someone leaves office. We need to know the team that participated in the procurement. Chairman, use your powers under Article 90 to summon them,” MP Nathan Itungo urged.
Bamuturaki said the acquisition was done under former CEO Ephraim Bagenda with input from a technical task force. While some members have since left the country, others remain in service at the airline.
MPs also raised concerns about the airline’s inability to pay dividends to the government for two years. “I don’t want to see these zeros again when it comes to dividends,” Sseggona warned.
Bamuturaki said 67.5% of the airline’s operations are funded from internally generated revenues, adding: “We are now looking to diversify our revenue streams. At the moment, we rely heavily on passenger and cargo services.”
The carrier is also battling legal cases over lost luggage and delayed cargo, a matter MPs said should be resolved without forcing passengers to seek court action. “Why are people losing their baggage? And why should someone go to court to recover a bag? This is a matter that should be resolved well before litigation,” MP Nkunyingi Muwada said.
While Uganda Airlines carries some debt, sources say its debt-to-GDP ratio remains below 50% and is not yet considered a major economic threat.
