Why did Uganda Airlines collapse?
It should be noted that Uganda Airlines was liquidated in 2001 where all operations were with effect stopped. By that time, it was employing about two thousand employees yet it had no Aircrafts to run. One of the two boeings 707 had crushed in Rome while the other was declared junk and thus could not run. In effort to save Uganda Airlines, staff were reduced from two thousand to four hundred and new planes were leased from Australia and Air Zimbabwe but were not enough to operate on all routes most especially to Europe. Today we therefore look at the possible reasons as to why Uganda Airlines collapsed yet it played an important role in as far as transporting people to and from Uganda was concerned. Many people have cried for its reinstatement in order to ease transportation of goods and people as well was promoting tourism in Uganda which has been earmarked by government as an important sector of the economy. Earlier efforts had seen the government of Uganda partner with a private investor to start Air Uganda but it was very unfortunate that this same company collapsed last year as it could not conform to international safety and flying standards.
Its has been discovered that at the time of collapse, government did not realise the importance of a national carrier and as such, it was not receiving funding and yet many people most of whom were recommended by government officials were being recruited. Government did not realise that having a anational carrier would ease the movement of people and goods as well as promoting tourism and tourist inflow to Uganda. This ended up weakening Uganda Airlines until its eventual collapse in 2001.
Uganda Airlines was not protected from competition from other companies such as Kenya Airways and other international Air companies. By 1994, Uganda Airlines had reduced on it debt and all it needed to recover was protection from other competing companies. While other governments like Kenya were protecting their companies and injecting more funds, the Government of Uganda just sat and relaxed leading to the collapse of Uganda Airlines. Some think that there were some insiders whose plot was to kill off Uganda Airlines since while the Government of Kenya and other governments were waving off taxes and other expenses on Kenya Airways, Uganda did not hence leaving it with lots of expenses and many staff.
The government of Uganda refused companies like Swiss Air, Lufthansa and Sabena which wanted to rescue Uganda and Airlines. One wonders why government refused this help yet it was not injecting in any cent to run Uganda Airlines. And as such wows continued resulting into the eventual downfall of Uganda Airlines.
As a result, nothing remained for Uganda Airlines and when Air Uganda was introduced, many people were very excited and looked forward to see what it would bring on board. This did not work and in 2014, it also closed shop leaving Uganda with no National carrier to its name. Many people are now urging the government to work toward reinstating Uganda Airlines at they feel that in this century, it has a role to play.