Michael Wakabi/KAMPALA
The privatisation of Uganda's national carrier is being delayed because of problems over landing rights allocated earlier to one of the bidders, under the African Joint Air Services Agreement.
Privatisation of the carrier was supposed to have been completed by last November, but the date was pushed back to March, after other bidders expressed concern over international route rights acquired by Alliance Air, the Kampala-based carrier owned by South African Airways (SAA), the Ugandan Government and Uganda Airlines and Air Tanzania.
Aside from a joint Alliance Air/SAA bid, Belgium's Sabena has also officially declared an interest. British Airways and Air Mauritius are also believed to be bidding for the carrier.
Sources at Uganda Airlines say that bidders feel there would be little point in acquiring the airline without its international services. Alliance Air operates on international routes which the national airlines of Uganda and Tanzania could not service for lack of widebodies. It uses a Boeing 747SP on flights to Europe and the Far East.
The Ugandan authorities want to cede a controlling stake in the national carrier to a strategic partner which will turn around the loss-making airline and help set up Entebbe Airport as an East African hub. Sources within the Ugandan government say it is now looking at multiple designation, as a way out of the impasse. This would allow the routes to be shared with other carriers.
Source: Flight International
