Members of Parliament on the Budget Committee are urging the government to provide justification for the ongoing capitalization of Uganda National Airlines, particularly in light of the proposed budget increase for the airline in the 2024/2025 financial year.
The budgetary adjustments are outlined in the report submitted by the Committee on Physical Infrastructure on the National Budget Framework Paper for the Ministry of Works and Transport. Hon. Tony Awany, the committee chairperson, presented the report on January 16, 2024.
“The Government plans to augment the airline’s funding by Shs34.9 billion, raising the budget to Shs120.9 billion. These funds are designated for payments to the Uganda Civil Aviation Authority, staff wages, training, aviation fuel procurement, aircraft insurance, inflight catering, and other expenses,” Awany explained.
However, the report has raised concerns among MPs on the Budget Committee regarding the profitability of Uganda National Airlines, with members pointing out operational inefficiencies.
Questions were posed about the government’s investment in the airline, the number of shares held by the government, and the intended investments in the short, medium, and long term, along with the funding mechanisms.
Hon. Dickson Kateshumbwa (NRM, Sheema municipality) queried, “We need to understand the Government investment in the airline; how many shares does the Government have? How much do they intend to invest in the short term, midterm, and long term, and which funding vehicle?”
Addressing operational decisions, Hon. Remigio Achia, the Deputy Chairperson of the Budget Committee, raised concerns about the choice of flight destinations, particularly mentioning Abuja, and complained about frequent flight delays, emphasizing a need for the airline to demonstrate a path to profitability.
“When you talk of flying to destinations such as Dubai, anyone can understand. We want to know what informed the airline to open flights to places such as Abuja,” said Hon. Remigio Achia.
Achia also expressed dissatisfaction with the airline’s punctuality, sharing personal experiences of significant delays. “I have recently used the airline thrice; I do not understand why they are always late; for an hour, even two hours, you expect to fly out at 8 p.m., but you end up flying at 10 p.m.,” he remarked.
Additionally, MPs raised concerns about the allocation of funds, noting that critical projects like the Kampala-Jinja Expressway and the standard gauge railway are not prioritized in the budget.
Legislators expressed frustration over budgeting for non-critical areas, such as the Shs5 billion earmarked to increase road user behavior and knowledge, while essential infrastructure projects face neglect.
