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Showing posts with label Air Uganda. Show all posts
Showing posts with label Air Uganda. Show all posts
Tuesday, 11 April 2017
Uganda Civil Aviation Authority Has New CEO, Uganda Civil Aviation Authority
'He and many others should have been fired the moment they killed Air Uganda. That was a low point in Uganda's aviation history and marked an abyss in relations between the industry and the regulators' commented a regular aviation source from Entebbe on the breaking news that Dr. Rama Makuza has been dismissed from the Uganda Civil Aviation Authority.
Makuza was reportedly given his sack notice by the Minister of Transport and Communications on recommendation of the Board, which found his performance wanting and decided he needed to go before his contract expired at the end of the year.
Capt. Mike Mukula, a former airline pilot said There has been a decline in Uganda’s Aviation sector compared to our regional neighbours in Kenya, Tanzania and Rwanda and I am happy about the board’s decision.
Mukula repeatedly saw himself at the receiving end from the UCAA and time and again took issue with the organization's decisions when he strongly disagreed with them, but several of the CAA's top team habitually ignored private sector input and stayed aloof, though other 'victims' described them as arrogant, ignorant and to some extend even incompetent.
There have been repeated calls to also clip the CAA's wings and remove from them the management of the airports as is seen as international best practice, where the regulators are no longer involved in the management of any facilities and elements of the aviation industry but remain solely in a regulatory role.
However, given the ongoing massive investment projects for Entebbe and other airfields in the country, has the UCAA resisted this change, leaving Uganda as the only major country in East Africa without a dedicated airports authority and related bodies.
This is a joke and the appointing authority surely must see the error of their ways. How can the CAA hang on to a regime which has long been discarded in Kenya, Tanzania and Rwanda?
It raises all sorts of questions what vested interests exist within the CAA especially when they talk of hundreds of millions of US Dollars in coming investments.
This stinks to heaven and therefore is one sacking simply not enough, a whole lot of others also need to go' added another regular outspoken source on condition of anonymity.
Former staff of Air Uganda too expressed their satisfaction that the top manager at the UCAA was sacked but demanded that others must follow, especially those involved in the killing of Air Uganda at the time, at the expense of our industry in general and our company in particular'.
Dr. David Kabuka has in the meantime been appointed as Acting CEO of the Uganda Civil Aviation Authority.
Good Luck Dr. David Kabuka
Thursday, 1 December 2016
TANZANIA: Government Acquires 2 Bombardier Q400NG Aircrafts For Air Tanzania
Pen was put to paper yesterday for the delivery of a third Bombardier Q400NG in a single class configuration but notably did the brand new C-Series get an entry into Africa when two of the CS300 variants were ordered at the same time.
Only days ago was the first such CS300 delivered to global launch customer AirBaltic after Swiss, part of the Lufthansa Group, had taken delivery of their CS100 variant at the end of June also a global launch customer.
The delivery dates for the two CS300 jets are yet to be fully confirmed but the third Q400NG might join the fleet already in H1 of next year. This will then facilitate the resumption of flights to more domestic and regional destinations before the CS300's, the most economical aircraft on the market in its class, will then allow for the rollout of more African routes.
This deal comes at a time when local rivals Precision Air and Fastjet in Tanzania remain in loss making territory and coincides with Fastjet suspending their flights from Dar es Salaam to Entebbe and Nairobi, giving Air Tanzania unexpected openings to take on such vacated routes with smaller and more efficient aircraft.
The sale of the first ever CS series aircraft to Africa by Bombardier is a coup of sorts over other manufacturers, in particular Embraer and will probably help to open the African market for such jets in the 100 - 150 seat market.
In a related development was it also learned that the Tanzanian government is in talks with Boeing over the purchase of a Boeing B787 Dreamliner to allow a revived Air Tanzania launch intercontinental flights similar to what is presently taking place in Rwanda, where the government, through RwandAir, has however opted to buy two Airbus A330 models.
This now also makes the air very thin for a revival of Air Uganda as the regional market appears saturated, given the status of Kenya Airways as regional force, the emergence of RwandAir as a serious and fast growing African contender already serving Uganda through fifth freedom right flights and a revived Air Tanzania with eventually 6 or seven brand new aircraft which will, in combination of the three, leave any newcomer trailing in their wake.
Friday, 24 June 2016
UGANDA: Will Uganda Get Another National Carrier?
President Museveni, when addressing the first cabinet meeting of his new government, reportedly told them that 'because our brothers in Ethiopia, Kenya and South Africa let us down' the formation of a national airline was now a priority.
When the former Uganda Airlines was finally dissolved it was because the carrier was broke and had been stripped of its cash cows like a ground handling monopoly, handed to a local consortium while the other profit making arm, the ownership of the local Galileo franchise, too eventually went into private hands.
No investors could be found at the time, as suitors swiftly discovered that all they would get was a debt ridden empty shell with no aircraft and few other assets.
Years later came the Aga Khan Fund for Economic Development, set up Air Uganda and was after seven years of operations nearing break even point, when the Ugandan Civil Aviation Authority killed them off, as amply explained here at the time.
That in fact happened at a time when the Ugandan government had the offer on the table to invest into the airline and turn it into a quasi if not real national carrier. While government pondered the offer did the Uganda CAA do their dirty work however and - allegedly to escape ICAO sanctions - pulled the international AOC's of all Uganda registered airlines, at one stage citing safety concerns.
This however was swiftly dismissed as a fairy tale and smoke screen as domestic operations by some of the affected airlines like the Aero Club in Entebbe, Ndege Juu in Kajjansi and of Eagle Air from Entebbe were allowed to continue even though they could not fly across the national borders.
Over 230 highly qualified employees of Air Uganda lost their jobs and connections to Nairobi, Juba, Kigali, Bujumbura, Dar es Salaam, Kilimanjaro, Mombasa and Mogadishu literally vanished overnight leading to a scramble for seats and substantially higher fares.
While eventually then RwandAir and Ethiopian were given fifth freedom traffic rights to fly out of Entebbe, to Juba first and then, in the case of RwandAir, to Nairobi, were most other former U7 routes no longer available on direct flights and needed transit elsewhere.
A former Air Uganda employee in fact, when discussing the development last night, promptly responded, on condition of anonymity: 'Unless those responsible at UCAA for the Air Uganda closure are retired or sacked and a new team installed, what will change.
Who will guarantee a new investor that they will not pull the same stunts all over again if they are faced with a potential ICAO audit failure like it was the case when they shut down U7'.
Airline sources reached in the short time also denied that there have been 'failures' on the part of regional airlines flying to and from Entebbe in regard of fares, but that for one it was the market vis a vis supply and demand of seats which led to pricing and perhaps the lack of incentives by the Ugandan authorities to make flying in and out of Entebbe cheaper.
Others pointed to the challenges even established airlines in the region were faced with, such as Air Tanzania or Kenya Airways, and that an upstart would find it very difficult to capture traffic on especially international routes, where the likes of Emirates, Qatar Airways, Etihad, Fly Dubai from the Gulf and Brussels Airlines and KLM from Europe offered both competitive fares and state of the art equipment, infrastructure and global connectivity, a national airline would find impossible to match.
One other aviation source then added yet more salt when pointing out that under the NCIP - short for Northern Corridor Integration Projects - an aviation deal was reached that member countries like Uganda and South Sudan without a national airline, would let those with well developed national carriers operate routes out of Entebbe on fifth freedom rights.
Towards that end is RwandAir increasing their fleet from the present 8 to 12 aircraft by the middle of next year, offering a wider range of connections for Ugandan travelers either directly out of Entebbe or via Kigali.
Insider information suggests that a group of international aviation investors is considering the setting up of a new airline based in Entebbe, but given the trend of rising crude oil prices, the cost of new aircraft - the airline would need both short / medium haul and long haul equipment to face the competition - and the globally emerging lack of pilots meeting the required standards, this will be a mammoth task to accomplish.
'Unless a new airline starts pole pole with say two or three aircraft for short regional routes, the initial losses would be staggering. They would need an approach like Air Uganda started up, building market share on key regional routes before branching out and gradually adding more.
Even then must an investor have deep pockets to sustain the initial losses for as much as two years, hoping the world economy will not throw tantrums and that the East African region is remaining stable and the money is found for all the infrastructure projects presently under planning. Look at RwandAir how they patiently over many years now built their brand and route network. That takes time and money.
The Rwandan government is fully behind their airline, but given our budget challenges and priorities like Health, Education and infrastructure, how much can Uganda squeeze out from the annual budget to support such a venture until it matures and breaks even'
Many questions indeed and certainly fodder for thought, giving airlines already on the route enough time to plan their market strategies in the event this becomes reality, of how best to compete using their networks, known brands, ability to adjust fares into and out of Entebbe and importantly, their frequent flyer programmes which give direct incentives and benefits to their loyal passengers.
Watch this space for regular and breaking news from Eastern Africa's aviation scene.
When the former Uganda Airlines was finally dissolved it was because the carrier was broke and had been stripped of its cash cows like a ground handling monopoly, handed to a local consortium while the other profit making arm, the ownership of the local Galileo franchise, too eventually went into private hands.
No investors could be found at the time, as suitors swiftly discovered that all they would get was a debt ridden empty shell with no aircraft and few other assets.
Years later came the Aga Khan Fund for Economic Development, set up Air Uganda and was after seven years of operations nearing break even point, when the Ugandan Civil Aviation Authority killed them off, as amply explained here at the time.
That in fact happened at a time when the Ugandan government had the offer on the table to invest into the airline and turn it into a quasi if not real national carrier. While government pondered the offer did the Uganda CAA do their dirty work however and - allegedly to escape ICAO sanctions - pulled the international AOC's of all Uganda registered airlines, at one stage citing safety concerns.
This however was swiftly dismissed as a fairy tale and smoke screen as domestic operations by some of the affected airlines like the Aero Club in Entebbe, Ndege Juu in Kajjansi and of Eagle Air from Entebbe were allowed to continue even though they could not fly across the national borders.
Over 230 highly qualified employees of Air Uganda lost their jobs and connections to Nairobi, Juba, Kigali, Bujumbura, Dar es Salaam, Kilimanjaro, Mombasa and Mogadishu literally vanished overnight leading to a scramble for seats and substantially higher fares.
While eventually then RwandAir and Ethiopian were given fifth freedom traffic rights to fly out of Entebbe, to Juba first and then, in the case of RwandAir, to Nairobi, were most other former U7 routes no longer available on direct flights and needed transit elsewhere.
A former Air Uganda employee in fact, when discussing the development last night, promptly responded, on condition of anonymity: 'Unless those responsible at UCAA for the Air Uganda closure are retired or sacked and a new team installed, what will change.
Who will guarantee a new investor that they will not pull the same stunts all over again if they are faced with a potential ICAO audit failure like it was the case when they shut down U7'.
Airline sources reached in the short time also denied that there have been 'failures' on the part of regional airlines flying to and from Entebbe in regard of fares, but that for one it was the market vis a vis supply and demand of seats which led to pricing and perhaps the lack of incentives by the Ugandan authorities to make flying in and out of Entebbe cheaper.
Others pointed to the challenges even established airlines in the region were faced with, such as Air Tanzania or Kenya Airways, and that an upstart would find it very difficult to capture traffic on especially international routes, where the likes of Emirates, Qatar Airways, Etihad, Fly Dubai from the Gulf and Brussels Airlines and KLM from Europe offered both competitive fares and state of the art equipment, infrastructure and global connectivity, a national airline would find impossible to match.
One other aviation source then added yet more salt when pointing out that under the NCIP - short for Northern Corridor Integration Projects - an aviation deal was reached that member countries like Uganda and South Sudan without a national airline, would let those with well developed national carriers operate routes out of Entebbe on fifth freedom rights.
Towards that end is RwandAir increasing their fleet from the present 8 to 12 aircraft by the middle of next year, offering a wider range of connections for Ugandan travelers either directly out of Entebbe or via Kigali.
Insider information suggests that a group of international aviation investors is considering the setting up of a new airline based in Entebbe, but given the trend of rising crude oil prices, the cost of new aircraft - the airline would need both short / medium haul and long haul equipment to face the competition - and the globally emerging lack of pilots meeting the required standards, this will be a mammoth task to accomplish.
'Unless a new airline starts pole pole with say two or three aircraft for short regional routes, the initial losses would be staggering. They would need an approach like Air Uganda started up, building market share on key regional routes before branching out and gradually adding more.
Even then must an investor have deep pockets to sustain the initial losses for as much as two years, hoping the world economy will not throw tantrums and that the East African region is remaining stable and the money is found for all the infrastructure projects presently under planning. Look at RwandAir how they patiently over many years now built their brand and route network. That takes time and money.
The Rwandan government is fully behind their airline, but given our budget challenges and priorities like Health, Education and infrastructure, how much can Uganda squeeze out from the annual budget to support such a venture until it matures and breaks even'
Many questions indeed and certainly fodder for thought, giving airlines already on the route enough time to plan their market strategies in the event this becomes reality, of how best to compete using their networks, known brands, ability to adjust fares into and out of Entebbe and importantly, their frequent flyer programmes which give direct incentives and benefits to their loyal passengers.
Watch this space for regular and breaking news from Eastern Africa's aviation scene.
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