Uganda postpones aircraft deliveries for second time

March 16, 2019 in Business, Companies, Travel & Tourism by Editor

Uganda Airlines has for the second time deferred delivery of the first set of aircraft, from March 18, to the end of the month. This is the second deferral after the initial February 23 date was missed.

Works Minister Monica Azuba has confirmed that the two CRJ-900 aircraft that Canadian manufacturers Bombardier is so far ready to deliver will arrive at the end of March. Uganda has four CRJ’s on order but only two will be delivered, tentatively in March 28 according to sources.

The delays are being linked to financial issues after a change of mind about the source of funding. The Cabinet has apparently decided to fund the purchases directly rather than through financial intermediation. A senior government official told 256BN that borrowing has been found to be expensive yet there was some windfall cash expected from telecom licenses and the oil fund that would be virtually unencumbered.

The carrier plans to start commercial operations in June with a regional network. Long distance flights will commence in 2021 after the first of two Airbus A330-800 neo’s is delivered in December 2020.