Air Uganda

Air Uganda was the trading name of Meridiana Africa Airlines (Uganda) Limited, a privately owned Ugandan regional airline based in Kampala and operating from Entebbe International Airport. Established in 2007 after the collapse of Uganda Airlines in 2001, it became widely regarded as Uganda’s de facto national carrier during its operating period, although it was not a state-owned airline. The carrier was created within the Celestair Group, an aviation investment network wholly owned by the Aga Khan Fund for Economic Development. Celestair also owned or controlled other African airline interests, including Air Burkina and Air Mali. Air Uganda began commercial operations on 15 November 2007. Its strategy centered on scheduled regional passenger services rather than long-haul flying. Using a small fleet of regional aircraft, the airline connected Entebbe with destinations in eastern and central Africa, including Nairobi, Juba, Kigali, Bujumbura, Dar es Salaam, Zanzibar and Kilimanjaro at different points in its history. Route availability changed over time in response to demand, partnerships, aircraft availability and regulatory conditions. During its first year, the airline carried more than 70,000 passengers. Average load factors were reported at approximately 70 percent on the Entebbe–Juba route and 60 percent on the Entebbe–Nairobi route. The airline developed its network through codeshare and interline relationships. It worked with Air Tanzania, Brussels Airlines, Qatar Airways, RwandAir, Precision Air and other carriers, allowing passengers to connect beyond Air Uganda’s own network. It also arranged for Marsland Aviation to carry Air Uganda-ticketed passengers on parts of the Juba–Khartoum market. In 2012, Air Uganda introduced self-handling at Entebbe International Airport and was authorized to provide handling services to other airlines using its facilities. The company stated that this initiative reduced annual costs by at least US$700,000, although the airline did not publish regular annual reports because it was privately held. Air Uganda considered entering the domestic Ugandan market, announcing plans in late 2011 to begin domestic services during 2012. Such a move would have required the acquisition of aircraft appropriate for domestic operations, but the planned expansion did not become a defining part of the airline’s business. In 2013, Air Uganda was described as the only Ugandan airline licensed by the Uganda Civil Aviation Authority to operate regular scheduled services to neighboring countries. In May 2014, it joined the African Airlines Association and the International Air Transport Association. The airline’s operating career ended in 2014. In June of that year, the Uganda Civil Aviation Authority faced the consequences of failing an International Civil Aviation Organization safety audit. The regulator subsequently withdrew air operator certificates it had issued, including Air Uganda’s certificate. Air Uganda suspended flights indefinitely on 17 July 2014. The company indicated that it expected possible re-certification within weeks, but aircraft lessors reportedly recalled the carrier’s leased aircraft. Air Uganda did not resume sustained commercial operations, and the brand is therefore considered defunct. Its closure left Uganda without the regional carrier that had served as the country’s principal international airline after Uganda Airlines’ earlier collapse.

Air Uganda was formed in 2007 as Meridiana Africa Airlines (Uganda) Limited and operated under the Air Uganda brand. It was wholly owned by the Celestair Group, which was itself owned by the Aga Khan Fund for Economic Development. The airline was created in a market that had lacked a functioning national carrier since Uganda Airlines ceased operations in May 2001. Although Air Uganda was privately owned, it became widely recognized as Uganda’s principal international airline during its active years. The carrier began commercial operations on 15 November 2007 from its operational base at Entebbe International Airport, while its corporate headquarters were in Kampala. Its initial business model emphasized short- and medium-haul scheduled services within East and Central Africa. The airline used a small regional fleet and operated routes linking Entebbe with cities such as Juba, Nairobi, Kigali and Bujumbura. Other destinations served at various times included Dar es Salaam, Zanzibar and Kilimanjaro. The network was subject to revision as demand, aircraft availability, commercial partnerships and regional conditions changed. Air Uganda reported more than 70,000 passengers during its first twelve months. The strongest early route performance was associated with Entebbe–Juba, which achieved an average load factor of about 70 percent, while Entebbe–Nairobi averaged approximately 60 percent. The carrier sought to broaden its role in the Ugandan market and announced in the fourth quarter of 2011 that it intended to begin domestic services in 2012. This expansion would have required aircraft appropriate for domestic operations, but domestic flying did not become a central element of the airline’s later network. Partnerships were important to Air Uganda’s commercial model. In 2008, it entered codeshare arrangements with Air Tanzania on routes from Entebbe to Kilimanjaro, Dar es Salaam and Zanzibar. It also arranged codeshares with Brussels Airlines and later Qatar Airways. In 2009, Marsland Aviation carried Air Uganda-ticketed passengers on parts of the Juba–Khartoum route when Air Uganda was not operating the service. Air Uganda and RwandAir established a codeshare on Entebbe–Kigali in 2010; that arrangement was halted from March 2012 and re-established in August 2013. In January 2014, Air Uganda signed another codeshare agreement with Precision Air covering Entebbe–Dar es Salaam and Entebbe–Kilimanjaro. By November 2013, Air Uganda reported interline relationships with Brussels Airlines, Emirates, Kenya Airways, Qatar Airways, Gulf Air, Air Mali, Precision Air, Hahn Air and RwandAir. These relationships helped connect the airline’s regional network with larger international systems. The company also changed its airport-services model. In 2012, it began self-handling at Entebbe and received authorization to handle other airlines using its facilities. The initiative was reported to save at least US$700,000 annually. In November 2013, Air Uganda marked its sixth anniversary and was described as the only Ugandan airline licensed by the Uganda Civil Aviation Authority to operate regular scheduled flights to neighboring countries. In May 2014, it joined the African Airlines Association and was admitted to IATA, developments that indicated an effort to strengthen its standing within the African and international airline industries. The airline’s operations ended during a regulatory crisis in 2014. The Uganda Civil Aviation Authority failed an International Civil Aviation Organization safety audit in June. In response, the regulator withdrew operating certificates that it had issued to Ugandan air operators. Air Uganda suspended all operations indefinitely on 17 July 2014. The airline indicated that it believed re-certification might be completed within weeks, but aircraft lessors reportedly recalled its leased aircraft. Without its certificate and aircraft, Air Uganda could not restore normal scheduled service. It never returned as a continuously operating commercial airline and is now treated as a defunct Ugandan airline brand.

• 2014

  African Airlines Association and IATA memberships

  [1]Air Ugandaen.wikipedia.org

  Air Uganda joined the African Airlines Association and was admitted to IATA in May 2014.

• 2014

  Operations suspended

  [1]Air Ugandaen.wikipedia.org

  Air Uganda suspended operations indefinitely on 17 July after its air operator certificate was withdrawn by the Uganda Civil Aviation Authority.

• 2013

  RwandAir codeshare restored

  [1]Air Ugandaen.wikipedia.org

  A new Air Uganda–RwandAir codeshare for Entebbe–Kigali took effect in August 2013.

• 2012

  Self-handling begins at Entebbe

  [1]Air Ugandaen.wikipedia.org

  Air Uganda took over its own ground handling at Entebbe and was allowed to provide handling for other airlines, reportedly reducing annual costs by at least US$700,000.

• 2011

  Domestic expansion announced

  [1]Air Ugandaen.wikipedia.org

  Air Uganda announced plans to begin domestic Ugandan service during 2012, dependent on acquiring suitable aircraft.

• 2010

  Entebbe–Kigali codeshare with RwandAir

  [1]Air Ugandaen.wikipedia.org

  Air Uganda and RwandAir coordinated service on the Entebbe–Kigali route, with each carrier operating a daily flight at different times.

• 2008

  Initial codeshare partnerships

  [1]Air Ugandaen.wikipedia.org

  The airline entered codeshare arrangements with Air Tanzania and Brussels Airlines and subsequently established a similar relationship with Qatar Airways.

• 2007

  Air Uganda is formed

  [1]Air Ugandaen.wikipedia.org

  Meridiana Africa Airlines (Uganda) Limited was established under the Air Uganda brand within the Celestair Group.

• 2007

  Commercial service begins

  [1]Air Ugandaen.wikipedia.org

  Air Uganda operated its first commercial flights from Entebbe on 15 November 2007.

• 2001

  Uganda Airlines ceases operations

  [1]Air Ugandaen.wikipedia.org

  The collapse of Uganda Airlines created the market context in which Air Uganda later became the country’s principal privately owned regional carrier.

A Ugandan regional carrier focused on scheduled passenger links between Entebbe and neighboring East and Central African markets.

• Passenger air transport · 2007

  Regional scheduled passenger flights

  Air Uganda’s core offering was scheduled regional passenger transport from Entebbe International Airport to cities in East and Central Africa. The network included destinations such as Juba, Nairobi, Kigali and Bujumbura, with Dar es Salaam, Zanzibar and Kilimanjaro also served at different times. The airline used regional aircraft and adjusted its routes over its operating life. The service was discontinued when the carrier suspended operations in July 2014.

• Aviation support services · 2012

  Airport ground handling

  Beginning in 2012, Air Uganda conducted self-handling at Entebbe International Airport and was authorized to provide handling services to other airlines using its facilities. The initiative formed a supplementary business activity alongside passenger flying and was intended to lower the airline’s operating costs. The company reported annual savings of at least US$700,000 from the change, although detailed financial statements were not publicly available.

• Airline partnership services · 2008

  Codeshare and interline connectivity

  Air Uganda used codeshare and interline agreements to extend the reach of its regional network. Partners mentioned in connection with the airline included Air Tanzania, Brussels Airlines, Qatar Airways, RwandAir, Precision Air, Emirates, Kenya Airways, Gulf Air, Air Mali and Hahn Air. These arrangements supported ticketing and connections beyond Air Uganda’s own scheduled routes.

• 2014

  Suspend scheduled operations after certificate withdrawalOther

  Background

  The Uganda Civil Aviation Authority faced action after failing an International Civil Aviation Organization safety audit and withdrew operating certificates issued to Ugandan air operators.

  Action taken

  Air Uganda suspended operations indefinitely on 17 July 2014 after its air operator certificate was withdrawn.

  Aftermath

  The airline did not resume sustained commercial service. Its leased aircraft were reportedly recalled by lessors, and the brand became defunct.

  Source

• 2012

  Introduce self-handling at EntebbeStrategy

  Background

  Air Uganda sought greater control over airport operations and lower handling expenses at its main base.

  Action taken

  The airline began handling its own ground operations at Entebbe and received authorization to handle other airlines using its services.

  Aftermath

  The initiative was reported to save Air Uganda at least US$700,000 annually and broaden its airport-services role.

  Reported annual cost savings. At least US$700,000 saved annually (2012)

  Source

1. 1Air Ugandaen.wikipedia.org