Uganda Airlines’ acquisition of four Canadair Regional Jets is under parliamentary scrutiny due to $150 million expenditure and mounting operational losses.
KAMPALA – Uganda Airlines' acquisition of four Canadair Regional Jets has come under intense parliamentary scrutiny, with lawmakers questioning the $150 million expenditure amid mounting operational losses and contractual concerns. The Government Assurances Committee grilled airline officials over the 2019 purchase from Bombardier, now revealed to have incurred 237 billion shilling losses according to the Auditor General's latest report.
The parliamentary session uncovered multiple challenges surrounding the CRJ fleet, including exorbitant maintenance costs and suboptimal route performance. Committee Chair Medard Ssegona of Busiro East expressed grave concerns, stating the aircraft have become financial burdens with negligible resale value despite their premium purchase price.
Uganda Airlines CEO Jennifer Bamuturaki defended the acquisition, citing global supply chain disruptions and high insurance premiums as contributing factors to the jets' underperformance. She emphasised that while the CRJs serve regional East African routes, the airline's two Airbus A330s handle longer international flights to destinations including Dubai, Mumbai, and London.
The hearing revived memories of Uganda Airlines' previous collapse between 1977-2001, which was plagued by financial mismanagement and operational failures. The current national carrier, relaunched in 2019, now faces similar sustainability questions as lawmakers demand greater accountability for the controversial aircraft purchase.
