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Uganda Airlines Back, Regional Airlines Launch Price War

Finally Uganda has revived its national carrier after the arrival of two brand new planes that touched ground at Entebbe International Airport.

President Yoweri Museveni was at the airport to receive the planes and address the nation, bringing an end of two decades of waiting.

Previously operating under Uganda Airlines Ltd, President Museveni ordered the liquidation of the national carrier that was operating on losses and insisted that his government was walking out of business to enforce a private sector led economy.

In 2001, Uganda Airlines Ltd was liquidated and another company registered as Uganda Airlines Holdings Ltd (UAHL) – this is the company under which the new planes are registered and delivered.

Arrival of the Uganda Airlines is going to stretch the competition further in the regional aviation business which operators say is not profitable anymore.

Tanzania, Rwanda, Kenya, Uganda have to compete for the region’s aviation cake and the tickets price war has begun.

For example RwandAir is charging only $190 for a trip from Kigali to Kinshasa against over $300 charged by CongoAir from Kinshasa to Goma.

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