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Home Business

Government funds Uganda Airlines fleet expansion amid restructuring

by The Homeland Newspaper
March 28, 2026
in Business
0
Government funds Uganda Airlines fleet expansion amid restructuring

The capital injection is part of a broader strategy to transform the carrier into a regional and international competitor. Since its relaunch, a limited fleet size has restricted the airline’s capacity to maintain consistent flight schedules or fully capitalize on emerging cargo and travel opportunities.

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The government has secured 422 billion shillings to fund a 10-plane fleet expansion for Uganda Airlines, an investment that arrives as the national carrier undergoes a significant management and institutional restructuring.

The funding, provided through a supplementary budget, is earmarked for securing production slots for the new aircraft. Officials noted that early payment is a critical requirement in the global aviation market due to manufacturing backlogs and high demand.

The capital injection is part of a broader strategy to transform the carrier into a regional and international competitor. Since its relaunch, a limited fleet size has restricted the airline’s capacity to maintain consistent flight schedules or fully capitalize on emerging cargo and travel opportunities.

However, the expansion is unfolding alongside efforts to resolve persistent financial and governance hurdles. The airline has recorded substantial operational losses since its revival, which management has attributed to high startup costs and the complexities of establishing new routes in a competitive industry.

To address these weaknesses, President Yoweri Museveni appointed Ethiopian aviation veteran Girma Wake in February 2026 as a consultant, advisor and acting chief executive. Wake is tasked with strengthening governance and institutional management until a substantive CEO is appointed in July 2026.

The leadership shift followed the dismissal of former acting CEO Jenifer Bamuturaki as part of a government effort to restructure the airline and address performance concerns.

Government officials said the combination of new funding and leadership changes is intended to put the airline on a path toward long-term sustainability. Analysts cautioned that the success of the fleet expansion will depend on the effectiveness of new management systems and strategic financial discipline.

The move underscores the government’s continued commitment to the national carrier despite the structural and operational challenges that have characterized its performance since its relaunch.

Email:homelandnewspaper@gmail.com

The Homeland Newspaper

The Homeland Newspaper

The Homeland Newspaper is Ugandan’s Leading independent weekly Newspaper that delivers real time news & information on Politics, Analysis,Investigations,Business,Finance

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