Government has secured Shs422.26 billion to support the expansion of Uganda Airlines’ fleet, as the national carrier grapples with aircraft shortages and operational disruptions on key international routes.
The funding, part of a supplementary request of Shs1.696 trillion approved last year, is earmarked for the acquisition of 10 new aircraft aimed at strengthening the airline’s capacity and route network.
Uganda Airlines has in recent months faced fleet constraints that have affected its long-haul operations, including the temporary suspension of some international routes.
The airline has been operating with a limited number of aircraft, making it vulnerable to disruptions caused by maintenance schedules and technical issues.
To bridge the gap, the carrier recently secured a Boeing Dreamliner from Ethiopian Airlines temporarily to resume its long-distance flights, underscoring the urgency of fleet expansion.
The money, which was secured through borrowing, is reflected in the Ministry of Finance’s February Performance of the Economy report.
The report indicates that, as a result of the borrowing, government operations during February resulted in a net borrowing of Shs1.22 trillion, exceeding the programmed target of Shs985.85 billion.
“This deviation was mainly driven by expenditure that exceeded projections, particularly on grants, including part payments to Uganda Airlines for the purchase of new aircraft, and interest payments,” the ministry noted.
It added that interest payments rose due to the front-loading of domestic borrowing to align with government expenditure needs.
Uganda Airlines’ growth ambitions, particularly on long-haul routes to Europe, Asia, and the Middle East, have been constrained by its small fleet size, which limits frequency, flexibility, and competitiveness.
A lean fleet also raises operational risks, as any unscheduled maintenance or technical grounding can significantly disrupt flight schedules and revenues.