Business
Uganda Airlines, Boeing sign for 10 new aircraft in sh3.7 trillion pact
Under the agreement, Uganda Airlines will acquire eight Boeing passenger aircraft, each with a seating capacity of 294 passengers, alongside two cargo freighters comprising a Boeing 767 wide-body converted freighter and a Boeing 737 Boeing Converted Freighter (BCF).
The first phase of the agreement will involve the delivery of four large passenger aircraft before the remaining aircraft are delivered.
By: Admin ., Journalist @New Vision
KAMPALA - Uganda has taken a major step towards strengthening its aviation sector and expanding global connectivity.
On Wednesday, June 10th, Uganda Airlines signed a landmark commitment with American aircraft manufacturer Boeing to acquire 10 new aircraft as part of the national carrier's long-term growth strategy.
The ambitious expansion project will cost approximately Sh3.7 trillion, funded through domestic revenue collections.
The agreement was signed by Uganda Airlines Acting Chief Executive Officer Girma Wake and Boeing Executive Vice President and Head of Sales for Africa, Anbessie Yitbarek.
Senior government officials, members of the Uganda Airlines Board of Directors, and representatives from Boeing attended the events.
The signing ceremony, witnessed by President Yoweri Museveni at State House Entebbe, marked a significant milestone in the government's efforts to transform Uganda Airlines into a major regional and international carrier.
Under the agreement, Uganda Airlines will acquire eight Boeing passenger aircraft, each with a seating capacity of 294 passengers, alongside two cargo freighters comprising a Boeing 767 wide-body converted freighter and a Boeing 737 Boeing Converted Freighter (BCF).
The first phase of the agreement will involve the delivery of four large passenger aircraft before the remaining aircraft are delivered.
A release from the Presidential Press Unit states that the acquisition forms part of a broader government strategy to expand the national carrier's fleet, increase direct international connections, boost tourism and trade, and position Uganda as a key aviation hub in the region.
The Minister of Works and Transport, Fred Byamukama, described the project as a strategic investment that will enhance Uganda's connectivity with the rest of the world.
The signing ceremony, witnessed by President Yoweri Museveni at State House Entebbe, marked a significant milestone in the government's efforts to transform Uganda Airlines into a major regional and international carrier.
Under the agreement, Uganda Airlines will acquire eight Boeing passenger aircraft, each with a seating capacity of 294 passengers, alongside two cargo freighters comprising a Boeing 767 wide-body converted freighter and a Boeing 737 Boeing Converted Freighter (BCF).
The first phase of the agreement will involve the delivery of four large passenger aircraft before the remaining aircraft are delivered.
A release from the Presidential Press Unit states that the acquisition forms part of a broader government strategy to expand the national carrier's fleet, increase direct international connections, boost tourism and trade, and position Uganda as a key aviation hub in the region.
The Minister of Works and Transport, Fred Byamukama, described the project as a strategic investment that will enhance Uganda's connectivity with the rest of the world.
"It is a very expensive project, but the President guided that we have no other option. We need to build our own airline. That is how Uganda can be connected to the rest of the world. Today we have signed the contract, and they will first deliver four aircraft, each with the capacity to carry 294 passengers at once," Byamukama said, according to the release.
The minister observed that the expansion will significantly reduce Uganda's dependence on transit hubs in other countries and increase direct flights into the country.
"Uganda will be connected directly to the rest of the world. We shall bring many investors directly to Uganda. Previously, investors had to transit through other countries and make several stopovers. With the addition of these aircraft, we shall have more direct routes and connections," he noted.
Byamukama disclosed that the government is expected to make an initial payment as part of the implementation process.
"Tomorrow, we are going to make the first deposit of Shs460 billion. The entire project will cost about Shs3.7 trillion. This money comes from taxpayers' contributions through government revenue collections, which the President directed should be invested in expanding Uganda Airlines," he explained.
The minister emphasised that the aircraft acquisition aligns with the government's broader infrastructure development agenda, which includes the expansion of Entebbe International Airport and the completion of Kabalega International Airport in Hoima.
He expressed optimism that the investments would significantly increase tourist arrivals and enhance Uganda's competitiveness in international aviation over the next decade.
"We are finalising Kabalega Airport and expanding Entebbe Airport. We know that within the next ten years, Uganda will be where it should be in terms of aviation development," Byamukama said.
He also revealed the government's plans to eventually introduce domestic air services to improve connectivity within Uganda.
"Once we stabilise the expanded international operations, we shall embark on domestic flights so that Ugandans can easily fly to destinations such as Gulu, Kotido, Kidepo, and Mbarara," he added.
Byamukama credited President Museveni's leadership and strategic vision for driving the country's aviation development agenda.
“We thank the Government of Uganda and His Excellency the President for his wise leadership and for continuously giving directives that place Uganda on the map and expand the country's economic development,” he said.
The signing ceremony also marked the beginning of what both parties described as a long-term partnership between Uganda Airlines and Boeing.
Boeing Vice President of Sales for Africa, Anbessie Yitbarek, pledged the company's commitment to supporting Uganda Airlines beyond aircraft supply through technical expertise, training, and capacity-building programmes.
He said Boeing would work closely with Uganda Airlines to ensure sustainable growth and operational excellence as the airline expands its fleet and route network.
According to Uganda Airlines, the planned acquisition will substantially increase the airline's capacity to serve regional, continental, and intercontinental markets while supporting Uganda's economic transformation agenda.
The airline noted that the additional aircraft will facilitate trade, tourism, investment promotion, and cargo transportation, directly contributing to the implementation of Uganda Vision 2040 and the country's aspiration of attaining sustainable middle-income status.
High-profile government officials at the events included: Minister of Finance, Planning, and Economic Development Henry Musasizi; former Works and Transport Minister Gen. Katumba Wamala; former Finance Minister Matia Kasaija; Permanent Secretary in the Ministry of Works and Transport Waiswa Bageya; and Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi.
Also in attendance were Uganda Airlines Board Chairperson Priscilla Mirembe Sseruka and board members; Boeing Commercial Sales and Marketing Africa representative Herb Wallen; and Chargé d'Affaires of the United States Embassy in Uganda, Mikael Cleverley, among other distinguished guests.
The minister observed that the expansion will significantly reduce Uganda's dependence on transit hubs in other countries and increase direct flights into the country.
"Uganda will be connected directly to the rest of the world. We shall bring many investors directly to Uganda. Previously, investors had to transit through other countries and make several stopovers. With the addition of these aircraft, we shall have more direct routes and connections," he noted.
Byamukama disclosed that the government is expected to make an initial payment as part of the implementation process.
"Tomorrow, we are going to make the first deposit of Shs460 billion. The entire project will cost about Shs3.7 trillion. This money comes from taxpayers' contributions through government revenue collections, which the President directed should be invested in expanding Uganda Airlines," he explained.
The minister emphasised that the aircraft acquisition aligns with the government's broader infrastructure development agenda, which includes the expansion of Entebbe International Airport and the completion of Kabalega International Airport in Hoima.
He expressed optimism that the investments would significantly increase tourist arrivals and enhance Uganda's competitiveness in international aviation over the next decade.
"We are finalising Kabalega Airport and expanding Entebbe Airport. We know that within the next ten years, Uganda will be where it should be in terms of aviation development," Byamukama said.
He also revealed the government's plans to eventually introduce domestic air services to improve connectivity within Uganda.
"Once we stabilise the expanded international operations, we shall embark on domestic flights so that Ugandans can easily fly to destinations such as Gulu, Kotido, Kidepo, and Mbarara," he added.
Byamukama credited President Museveni's leadership and strategic vision for driving the country's aviation development agenda.
“We thank the Government of Uganda and His Excellency the President for his wise leadership and for continuously giving directives that place Uganda on the map and expand the country's economic development,” he said.
The signing ceremony also marked the beginning of what both parties described as a long-term partnership between Uganda Airlines and Boeing.
Boeing Vice President of Sales for Africa, Anbessie Yitbarek, pledged the company's commitment to supporting Uganda Airlines beyond aircraft supply through technical expertise, training, and capacity-building programmes.
He said Boeing would work closely with Uganda Airlines to ensure sustainable growth and operational excellence as the airline expands its fleet and route network.
According to Uganda Airlines, the planned acquisition will substantially increase the airline's capacity to serve regional, continental, and intercontinental markets while supporting Uganda's economic transformation agenda.
The airline noted that the additional aircraft will facilitate trade, tourism, investment promotion, and cargo transportation, directly contributing to the implementation of Uganda Vision 2040 and the country's aspiration of attaining sustainable middle-income status.
High-profile government officials at the events included: Minister of Finance, Planning, and Economic Development Henry Musasizi; former Works and Transport Minister Gen. Katumba Wamala; former Finance Minister Matia Kasaija; Permanent Secretary in the Ministry of Works and Transport Waiswa Bageya; and Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi.
Also in attendance were Uganda Airlines Board Chairperson Priscilla Mirembe Sseruka and board members; Boeing Commercial Sales and Marketing Africa representative Herb Wallen; and Chargé d'Affaires of the United States Embassy in Uganda, Mikael Cleverley, among other distinguished guests.