Madhvani seeks renewal of operation licence for private planes

Crystal sugar millers Madhvani Group have presented their case for renewal of operational licence for their fleet of business and private aircraft to the Board of the Uganda Civil Aviation Authority (UCAA).

Madhvani, the proprietors of Uganda's biggest sugar millers by share capital, own Premier Services East Africa Limited based at their flagship company, Kakira Sugar Ltd, where they operate Kakira Airstrip.

On Friday, the industrialists of Indian heritage joined two other local airline operators as they defended their air service licences before the CAA.

A fourth operator, Arasus Aviation Limited, pitched for a licence to start operating in the country's airspace.

Before the seven member board chaired by retired former deputy Chief Justice, Steven Kavuma, Misk Air Limited, Air SERV Limited and Premier Services East Africa Limited made separate cases to have their licences renewed.

Madhvani's case

During the public hearing held at Protea Hotel in Kampala, Madhvani's Premier Services East Africa Limited said they seek renewal of their licence to continue operating out of Kakira to transport directors of the company and immediate family members.

“We operate two aircraft and we have been in existence since 1995," Mr Moses Okello, representing Premier Services East Africa, said.

"We have over the years contributed revenue to government, trained local personnel and provided employment to Ugandans."

Madhvani Group runs seven lodges in East Africa, including Mweya, Paraa, Silverback lodges. Some of the aircraft are chartered by their high-end clients between the safari lodges and other tourist destinations.

But they also need the aircraft for business and private travels.

For a while, the Madhvanis imported horse feed from Kenya often flying in the feeds to cater for their stable that is used for polo sport in Kakira. They now grow them in Kakira.

But with business interests and some like Mayur owning homes in Kenya and London, UK, the Madhvanis fly out regularly, often in their private planes.

Mayur, a joint managing director, has homes in Nairobi and a recently added chillout pad in Mombasa

Others

John Bulungu, the company secretary for Arasus Aviation Limited said the company incorporated in April this year seeks to start operating both scheduled and non- scheduled cargo and passenger services in Uganda.

“The vision of Arasus Aviation is to enter this market and provide safe and reliable air transport. When fully operation we will be able to generate income, employ Ugandans and we hope we can employ between 30 to 40 Ugandans in 3 years. Currently, we employ four engineers, four pilots and non-technical staff,” Bulungu told the board.

He said they seek to operate domestic flights  between Entebbe and Kasese, Kihihi, Mbarara, Arua and Jinja .

“Our key target market are businessmen who wish to fly on scheduled flights and  cargo. We are also looking at tourists moving around this country . We believe the market there is a market potential but we also hope to see reduced flight costs,” Bulungu said.

He added that the company owners have previously operated in Jordan for a period of 27 years, giving them the required experience .

Louis Kigonya from Air Serve Limited told the seven member panel that the company which has been in Uganda for over 30 years hopes to leverage this experience as they seek renewal of their licence for the next five years.

“We offer humanitarian services and air craft maintenance.  We have over 48 Ugandan employees with the company and because we majorly operate from Entebbe and outside, we are promoting Uganda abroad,” Kigonya told the UCAA board.

He said they have specialized aircraft that take both passengers and light cargo, noting that they currently operate in Chad, DRC and Sudan.

“Our business niche is humanitarian through education and empowerment. In next five years we intend to keep serving the humanitarian community but also venture into empowering Ugandans through training. We also want to venture into general aviation in the next five years.”

Francis Mbembe, the CEO of Misk Air told the board that the company aims to continue bridging the gap in underserved areas, especially DRC.

“We have a minimum working capital of between $500, 000 and $ 2million to show our financial standing and we are a presently a participant in the East African Community aviation market in addition to providing job opportunities,” Mbembe said.

He said whereas Covid hit them badly, they are on course to fully recovery.

“Our familiarity with businesses and established institutions like NGOs and the United Nations has been crucial and we seek renewal of our licence to continue with our services of offering humanitarian transport by air,” Mbembe said.

The Misk Air CEO said they are planning to launch air service between Entebbe and Goma, adding that currently, 97% of their employees are Ugandans.

Speaking on behalf of the Uganda Civil Aviation Authority board, chairperson, retired deputy justice Steven Kavuma said they were impressed by the presentations of the four applicants.

“We have learnt a thing or two from the information provided by these service providers.  I was very happy to hear the efforts by these air service providers and arousing interest in aviation industry for the young generation,” Kavuma said.

He added that currently, there are 26 Ugandan licensed air operators offering scheduled passenger and/or cargo, non-scheduled passenger and/or cargo, private, training and aerial works services.

“Regarding the scheduled international air services, Uganda has concluded Bilateral Air Service Agreements (BASAs) with 56 countries. Sixteen airlines operate international scheduled services to and from Entebbe International Airport in accordance with the provisions of the BASAS concluded between Uganda and the respective countries,” Kavuma said.

He noted that the national carrier operates to 13 destinations including Dubai, Johannesburg, Nairobi, Mombasa, Dar es Salaam, Zanzibar, Kilimanjaro, Juba, Bujumbura, Kinshasa, Mogadishu, Lagos and Mumbai.

“UCAA therefore encourages Ugandan licenced air operators serving domestic and international routes to synergize through airline cooperative arrangements like codeshare agreements and interlining with Uganda Airlines and other international air operators to increase air connectivity and stimulate the growth of air passenger and cargo traffic in Uganda. We wish to reiterate its commitment to the growth and development of the aviation industry in Uganda.”

The acting UCAA director general, Hellen Wenene underscored the role such public hearings towards shaping the future of the country’s aviation industry with particular emphasis on safety, security and efficiency in service provision.

“This transparent public hearing accords applicants for air services an opportunity to present their case. Members of the public with substantial ground to object the grant/renewal of the air services to the applicants always have an opportunity to lodge such objection in writing to the Authority, with a copy of the objection to the applicant concerned,” Wenene said.

She noted that with such public hearings, UCAA strives to create a level playing field for all operators, while encouraging fair competition, innovation and consumer protection.