Uganda Air Cargo, a subsidiary of the National Enterprise Corporation, is set to be revived after the Cabinet of President Yoweri Museveni approved a recapitalization of USD266 million earlier this year. The carrier lost its air operator's certificate in 2014 when its fleet was grounded, resulting in key contracts being rescinded. Since then, it has been dormant despite numerous attempts at revival.
Financial Situation
According to an auditor-general report for the financial year ending June 30, 2022, Uganda Air Cargo Corporation made an annual net loss of USD2.48 million despite being owed USD5.68 million in uncollected debts. As such, the decision to extend the required funding to Uganda Air Cargo Corporation was taken by Cabinet in May via Directive 185 (CT2023) under which the funds should be disbursed over a period of four years.
Utilization of Funding
The funding will be used to undertake avionics upgrades as well as modernize Uganda Air Cargo Corporation's L-100-30 Hercules 5X-UCF which is in Jordan for maintenance after suffering a bird strike in Sudan. The turboprop, acquired by the Idi Amin regime in the 1970s, still has over 3,000 flight hours once revamped. In terms of other projects, Uganda Air Cargo Corporation will also lease an A320-200 for UPDF troop movements, lease an A330-200F for cargo flights to the Middle East, Asia, and Europe, and procure spares, components and other consumables.
Uganda Airlines
Fellow state-owned carrier Uganda Airlines has also been dabbling with the prospect of acquiring its own freighters to help Uganda tap into booming export demand for agri-products.
Summary
The recapitalization of Uganda Air Cargo Corporation is a positive step towards reviving the carrier and strengthening Uganda's aviation industry. With modernized equipment and upgraded technology, Uganda Air Cargo Corporation will be better equipped to serve its customers and contribute to the growth of the country's economy.
(This article is sourced from ch-aviation.com and curated by Thetransporteronline24)
