By Jacklina Mutesi
Last year, Uganda Airlines reportedly underperformed by 207 billion shillings and was struggling to sustain its services. Fast forward to 2023, with new fleet and new routes, it’s looking up for the national carrier.
Is this truly the case, and can Uganda Airline’s contribute to Uganda’s GDP? This was the focal point of NBS’ Business Perspective episode that aired on Monday 16th October, 2023.
Airlines wield substantial influence on their respective nations’ economic landscapes, making them potent contributors to GDP. Recent years have showcased their effect vividly. Established carriers such as Emirates Airlines and Qatar Airways stand as exemplary models. In 2018, Emirates made a staggering $26.9 billion contribution to the UAE’s GDP. Qatar Airways similarly plays a pivotal role, with its 13% GPD contribution in Qatar.
The scenario contrasts with Uganda Airlines, which, as a newcomer, is still gaining traction in the industry. In the realm of business, airlines are not just vehicles for transport; they are dynamic economic powerhouses soaring through the skies.
In a sit down interview with Jacklina Mutesi, the show’s host, Dr Fred Muhumza, a senior Economist and lecturer at Makerere University, was confident that it was not the old singsong of COVID 19 pandemic, but rather a mismanagement of the Airline, to which its poor performance could be attributed.
‘We are beginning to see numbers similar to those before the pandemic… They seem to be picking up well in terms of institutional arrangement and structure. What is left, is the creation of an ecosystem, airlines make money not just from flying but from what is in the belly of the plane’ Muhumza affirmed.
Vianney Luggya, Public affairs Manger at the Civil Aviation Authority was less inclined to agree.
Based on the airlines’ half year performance,Uganda Airline is set to recover financially from COVID by 2024. Despite an increase in foot traffic, Captain Francis Babu, seasoned Aviator, was not convinced. He’s of the belief that the Airline’s troubles are political and started long before the pandemic. ‘One thing Ugandans fail to understand is meritocracy. Putting the right people in the right positions’ he said.
While many restructures and re-organizations have been undertaken to ensure Uganda Airline’s success, we have to look to the future with hope that National carrier can also carry the country’s economy.