NAIROBI – Uganda Airlines has taken to the skies once more after almost two decades out of action but flies into a crowded aviation market in Africa where carriers have the weakest finances and emptiest planes of any region in the world.
The state carrier launched commercial flights on Wednesday, its first since it was liquidated in 2001, aiming to take a slice of the East African aviation business that is dominated by Ethiopian Airlines, the continent’s success story.
Uganda is the latest African government to pour money into national flag carriers; Tanzania and Senegal are also resurrecting their airlines, while the likes of Rwanda, Ivory Coast and Togo are expanding theirs.
The African market is forecast to grow almost 5 percent a year over the next two decades in terms of passengers, faster than mature markets, according to the International Air Transport Association (IATA).
African aviation accounted for only 2.1 percent of the global market in 2018, with 92 million passenger journeys flown, and non-African airlines including Emirates and Turkish Airlines account for around 80 percent of traffic in and out of the continent, IATA said.
African airlines are also struggling to improve load factors -the percentage of seats filled – from the world’s lowest regional level of 71 percent in 2018, compared with 81.2 percent globally, according to IATA.
Uganda Airlines, founded by former dictator Idi Amin in 1976, was liquidated in 2001 after years of unprofitability during a push to privatise state firms.
Uganda Airlines CEO Bagenda insisted his company would be free from any political interference.
“Government policy in Uganda is eyes on, hands-off,” he said. – eNCA
