Uganda Airlines bids to grow local suppliers into global players

June 27, 2024 in Business, Companies by Editor

Flag carrier Uganda Airlines aims to incubate its 200 local suppliers into formidable businesses that can compete on the global scene. Relatedly, such an evolution could turn them into the anchor of its fledgling cargo operation, contributing to the airlines’ sustainable growth.

That was the central message chief executive Jenifer Bamuturaki brought to the carriers’ inaugural suppliers’ forum, held at Kampala’s Mestil Hotel on June 26.

To achieve this, suppliers will have to use the airline as a learning template to familiarise themselves with the stringent quality standards that govern international aviation.

“We are committed to working with you to expand on the range of products that you can supply on competitive terms. But we also want you to grow with us by transforming into globally competitive companies that can supply quality products not just Uganda Airlines but the global legacy airlines,” Bamuturaki told the forum that also had representatives from Uganda’s regulatory agencies in attendance.

To get there however, local suppliers will need to make focused efforts to embed a culture of quality across their value chains with particular attention to improving quality across the parameters of packaging, consistency in taste and inventory.

If they can aspire to and achieve internationally acceptable quality, their market will grow beyond Uganda Airlines, opening opportunities for export, which could in turn make them customers of Uganda Airlines cargo services.

Speaking about the theme of the forum which was “Leveraging Supply Opportunities in UNACL to drive procurement excellence,” Bamuturaki asked the suppliers to think about what more they could do “together to leverage the national carrier for national development.”

She also encouraged them to think big and find ways of plugging into opportunities that are emerging as the airline industry moves to decarbonise.  One such opening could be in collaborating with energy companies in the production of sustainable aviation fuels SAF.

“You could partner with the oil companies to grow SAF feedstock, which happens to be just about any vegetable matter,” she said.

Internally, Uganda Airlines is transitioning its onboard consumptive line from plastics to eco-friendly material. Most of these could be made from bamboo, which can be grown and processed into end products locally. Currently, local entities supply 90 percent of this line.

It was also revealed that the airline will spend USD95 million on procurement of goods and services during the financial year that starts Jully 1, pointing to the immense opportunity for local suppliers.

Uganda Airlines is also growing, expanding its network and increasing the number of times it flies on certain routes. This has translated into more passengers and more demand for onboard consumables. The airline carried 0.5 million passengers between July 2023 and June 2024. It expects this number to grow further, after introducing a wet-leased A320 in May.

The bigger passenger capacity of the A320, which is double what the CRJ can carry, means the airline can take advantage of growth in demand on routes such as Nairobi, Kinshasa and Johannesburg. The introduction of the aircraft has also enabled the airline to increase flights to Nairobi, Dar es Salaam, and Kinshasa.

The growing network, now at 13 destinations, also means more cargo capacity. Bamuturaki said they have up to 16 tons of cargo on each flight operated by their A330-800s, which currently fly to Dubai, Lagos and Mumbai.

“The big picture requires you to think about exploiting the synergies we offer such as using our cargo capacity to expand your networks to produce quality goods for export. That way, you will be adding more value to yourselves, the airline and to the country,” Bamuturaki said.