MPs Question Viability of Increased Budget for Uganda Airlines

Members of the Budget Committee in Parliament are seeking detailed justification from the government regarding the proposed increase in the budget allocation for Uganda National Airlines in the upcoming 2024/2025 financial year. The request follows concerns raised during a presentation by Hon. Tony Awany, the committee chairperson, regarding the capitalization of the national airline.

In the report presented on 16 January 2024, Hon. Tony Awany disclosed that the government plans to raise the airline’s budget by Shs34.9 billion, bringing the total to Shs120.9 billion. The additional funding is intended for various purposes, including payments to the Uganda Civil Aviation Authority, staff wages, training, aviation fuel procurement, aircraft insurance cover, inflight catering, among others.

The Budget Committee members expressed apprehension about the airline’s profitability, questioning the government’s continuous investment in the venture. Hon. Dickson Kateshumbwa raised specific queries about the government’s shares in the airline, the planned investments in the short, medium, and long terms, and the funding mechanisms.

Highlighting operational inefficiencies, committee members emphasized the need for the government to demonstrate the airline’s potential for breaking even as a basis for ongoing financial support. Concerns were raised about the choice of flight destinations, with Hon. Remigio Achia questioning the rationale behind flights to places like Abuja and citing his personal experience of flight delays.

Achia raised issues of flight delays, citing personal experiences of up to two hours of delays with Uganda Airlines. He questioned the airline’s punctuality, expressing dissatisfaction with the repeated delays.

The legislators also criticized the allocation of funds, pointing out that the budget allocates Shs1.83 trillion to the Uganda National Roads Authority but remains silent on critical projects like the Kampala-Jinja Expressway and the standard gauge railway. Hon. Moses Magogo emphasized the urgency of prioritizing these key infrastructure projects, especially considering the challenges on the existing road.

In addition, members of the committee expressed discontent with budget allocations for non-critical areas, such as the Shs5 billion earmarked to enhance road user behavior and knowledge. They called for a reassessment of priorities, emphasizing the need to allocate resources to projects that have a more immediate impact on infrastructure development.