Entebbe moves towards regional hub
Mar 10, 2008
WITH the entrance of the Aga Khan-backed Air Uganda, Entebbe Airport may at last have a chance to realise its potential as a regional hub, aviation authorities say.
By Emmy Olaki
WITH the entrance of the Aga Khan-backed Air Uganda, Entebbe Airport may at last have a chance to realise its potential as a regional hub, aviation authorities say.
Since the collapse of national carrier, Uganda Airlines, in the late 1990s, several airlines have tried to set up shop using Entebbe as their base and failed abysmally.
Alliance Air, AfricaOne, East African Airways, all came and went, their major undoing being their inability to take on a regional giant, Kenya Airways, on the lucrative Entebbe-Nairobi route.
The Civil Aviation Authority (CAA) says that in order to make any international airport busy, you need a strong home-based airline.
“A national airline is a strategic investment for any international airport or country because it insures you against becoming a place where other operators just come to drop and pick passengers,†Ignie Igundura, the aviation authority’s spokesman, said.
He said a national home- based airline was also key to the growth of the national air gateway like Entebbe as it makes the airport its national hub.
“Hubbing an airport gives its nationals more options to various destinations,†Igundura explained.
A national airline would also respond to national interests faster than other operators in times of national strife, and also employ nationals.
He said a national airline opens up the country to trade and tourism by developing routes to deliberately identified tourism and trade source countries or destinations and through the hub and spoke strategy, a national airline becomes the main feeder to other international operators who fly to your airport.
According to Igundura, CAA at a policy level tried everything possible to support every airline that came up as a national carrier.
“Some of them got even more support than Air Uganda. East African Airways, for example, got a lot of incentives like a waiver on all airport charges. This was the same for AfricaOne and Victoria Air,†he said.
However, the promoters of the airlines were not prepared for what it takes to make it in this capital-intensive industry.
Igundura said most of the promoters of the airlines never considered what it takes financially from the time you commence business till the time you break even.
“In this industry, it’s not less than six months before one breaks even.â€
“This is because you still have to develop your routes and build a customer base. Until your revenue flow and expenses intersect, you can’t expect to make it, and if you don’t put this into consideration before starting, you are doomed.â€
Other sources said the promoters had a tendency of presenting the most enviable documents during registration, but they failed with implementation and sustainability.
Apart from the business acumen, Igundura says Ugandans as passengers do not want to experiment with new airlines when there are established carriers with clear records. “Until the airline establishes itself, Ugandans may not give their support, especially when there is an existent airline that has been running for years.â€
However, there are high expectations in Air Uganda because of its financial backing from the Aga Khan Foundation for Economic Development (AKFED) and the technical backing from Meridiana, its sister company based in Italy, that has been operating flights for the last 40 years.
“We are projecting to break even in about one year. At the moment, our plan is to raise the level of service to the best standard at affordable rates to increase the level of air transport among the East African people,†Peter de Waal, the chief executive of Air Uganda, said.
Compared to former attempts, Air Uganda has started acquiring some of the best fleet of aircraft. Last week, they brought in the MD-87 from Olbia that has been tailored to make air travel enjoyable and comfortable.
“Our target is to be the best in Africa. Although we are initially starting in the region, we shall eventually spread to the rest of Africa,†de Waal said.
“You have come to fill the transport gap in Uganda. Uganda is a landlocked country with a lot of transport challenges. This is the best way to go,†Sam Ejua, the transport state minister, said.
WITH the entrance of the Aga Khan-backed Air Uganda, Entebbe Airport may at last have a chance to realise its potential as a regional hub, aviation authorities say.
Since the collapse of national carrier, Uganda Airlines, in the late 1990s, several airlines have tried to set up shop using Entebbe as their base and failed abysmally.
Alliance Air, AfricaOne, East African Airways, all came and went, their major undoing being their inability to take on a regional giant, Kenya Airways, on the lucrative Entebbe-Nairobi route.
The Civil Aviation Authority (CAA) says that in order to make any international airport busy, you need a strong home-based airline.
“A national airline is a strategic investment for any international airport or country because it insures you against becoming a place where other operators just come to drop and pick passengers,†Ignie Igundura, the aviation authority’s spokesman, said.
He said a national home- based airline was also key to the growth of the national air gateway like Entebbe as it makes the airport its national hub.
“Hubbing an airport gives its nationals more options to various destinations,†Igundura explained.
A national airline would also respond to national interests faster than other operators in times of national strife, and also employ nationals.
He said a national airline opens up the country to trade and tourism by developing routes to deliberately identified tourism and trade source countries or destinations and through the hub and spoke strategy, a national airline becomes the main feeder to other international operators who fly to your airport.
According to Igundura, CAA at a policy level tried everything possible to support every airline that came up as a national carrier.
“Some of them got even more support than Air Uganda. East African Airways, for example, got a lot of incentives like a waiver on all airport charges. This was the same for AfricaOne and Victoria Air,†he said.
However, the promoters of the airlines were not prepared for what it takes to make it in this capital-intensive industry.
Igundura said most of the promoters of the airlines never considered what it takes financially from the time you commence business till the time you break even.
“In this industry, it’s not less than six months before one breaks even.â€
“This is because you still have to develop your routes and build a customer base. Until your revenue flow and expenses intersect, you can’t expect to make it, and if you don’t put this into consideration before starting, you are doomed.â€
Other sources said the promoters had a tendency of presenting the most enviable documents during registration, but they failed with implementation and sustainability.
Apart from the business acumen, Igundura says Ugandans as passengers do not want to experiment with new airlines when there are established carriers with clear records. “Until the airline establishes itself, Ugandans may not give their support, especially when there is an existent airline that has been running for years.â€
However, there are high expectations in Air Uganda because of its financial backing from the Aga Khan Foundation for Economic Development (AKFED) and the technical backing from Meridiana, its sister company based in Italy, that has been operating flights for the last 40 years.
“We are projecting to break even in about one year. At the moment, our plan is to raise the level of service to the best standard at affordable rates to increase the level of air transport among the East African people,†Peter de Waal, the chief executive of Air Uganda, said.
Compared to former attempts, Air Uganda has started acquiring some of the best fleet of aircraft. Last week, they brought in the MD-87 from Olbia that has been tailored to make air travel enjoyable and comfortable.
“Our target is to be the best in Africa. Although we are initially starting in the region, we shall eventually spread to the rest of Africa,†de Waal said.
“You have come to fill the transport gap in Uganda. Uganda is a landlocked country with a lot of transport challenges. This is the best way to go,†Sam Ejua, the transport state minister, said.