Members of Parliament on the Budget Committee have asked the government to justify the continuous capitalization of Uganda Airlines, following the proposal to increase the national carrier’s budget in the 2024/2025 financial year.
The budget increase is entailed in the report of the Committee on Physical Infrastructure on the National Budget Framework Paper for the Ministry of Works and Transport.
Tony Awany, the committee chairperson, presented the report before the budget committee on 16 January 2024.
Awany said the Government intends to increase the airline’s funding by Shs34.9 billion, raising the budget to Shs120.9 billion.
These resources will be used to cater for payments to the Uganda Civil Aviation Authority, wages, staff training, procuring aviation fuel, insurance cover for aircraft, Inflight catering, and others.
His report left MPs on the Budget Committee concerned about the airline’s profitability, citing ineptitudes in its operations.
Citing the airline’s inefficiencies, members said the government needed to demonstrate the airline’s likelihood of breaking even, as its basis for continuous funding.
Remigio Achia, the deputy chairperson of the Budget Committee questioned some of the flight routes noting that when one talks of flying to destinations such as Dubai, anyone can understand but questions remain on opening flying routes to places such as Abuja.
