Uganda Air Cargo (UCC, Entebbe/Kampala) has asked the country’s parliament to back a UGX8 billion Ugandan shilling (USD2.17 million) bailout to cover losses accumulated in 2014-16 when its Air Operator’s Certificate (AOC) was revoked, the Daily Monitor newspaper has reported. It also appealed for funds to acquire a B737 Classic freighter.
The Ugandan Civil Aviation Authority (UCAA) revoked the AOCs of all locally-based airlines in June 2014, refusing to approve the state-owned carrier, along with Air Uganda and Transafrik Uganda, under the International Civil Aviation Organisation (ICAO)-backed safety audit.
The carrier resumed operations in 2016, currently in the form of scheduled and charter cargo and passenger services from its base at Entebbe/Kampala to destinations in Eastern and Central Africa.
John Otekat, chairman of the board, told the Ugandan parliament’s defence and internal affairs committee on November 12 that the airline suffered losses while out of action, and that both of its Lockheed Hercules C-130 aircraft remained grounded due to cracks in their centre wing box.
The carrier has appealed to the parliament for UGX55.46 billion (USD15 million), two-thirds of which would go towards the repairs and the remainder towards a new “B737-500″[sic] freighter.
It has just one Harbin Y12 turboprop with no back-up in the event of an emergency, resulting in lost confidence among customers such as the United Nations, Otekat said, adding that the airline recently lost a USD11 million contract from the United States due to lack of capacity.