Michael Wakabi/KAMPALA
Ailing Uganda Airlines has reduced its services to a minimum in anticipation of its takeover by South African Airways (SAA) in March. A top-level meeting between Uganda's president Yoweri Museveni and an SAA delegation last month appeared to iron out remaining obstacles to the deal. Uganda is to shed around 60% of its 240 staff ahead of the takeover.
Under the new deal, Uganda will retain the chair of the privatised entity - of which SAA will hold 49% - for the first year, with a casting vote, while liabilities will not be carried into the partnership. The revamped carrier will also use multibranding, carrying the QU and SA codes concurrently.
The future of Uganda's 12 pilots is unclear, as they would need approval from Pretoria to fly SAA's South Africa-registered aircraft. Redundancy payments to staff will be met from a $1.5 million windfall from the sale of 18,000 shares the airline held in SITA.
Since 9 December, when a lease on Uganda's Boeing 737 ran out, the carrier has operated trip-leases and codeshared with other airlines to continue services. It wet-leased a Boeing 727 from South Africa's Million Air Charter and integrated daily flights to Nairobi into Kenya Airways' schedule.
Source: Flight International
