Kampala, Uganda | THE INDEPENDENT | Members of Parliament on the Budget Committee tasked the government to justify the continuous capitalization of Uganda National Airlines, following the proposal to increase the airline’s budget in the 2024/2025 financial year.
The budget increase is entailed in the report of the Committee on Physical Infrastructure on the National Budget Framework Paper for the Ministry of Works and Transport.
Hon. Tony Awany, the committee chairperson, presented the report before the budget committee on 16 January 2024.
“The Government intends to increase the airline’s funding by Shs34.9 billion, raising the budget to Shs120.9 billion. These resources will be used to cater for payments to the Uganda Civil Aviation Authority, wages, staff training, procuring aviation fuel, insurance cover for aircraft, Inflight catering, and others,” Awany said.
His report left MPs on the Budget Committee concerned about the airline’s profitability, citing ineptitudes in its operations.
Citing the airline’s inefficiencies, members said the government needed to demonstrate the airline’s likelihood of breaking even, as its basis for continuous funding.
“When you talk of flying to destinations such as Dubai, anyone can understand. We want to know what informed the airline to open flights to places such as Abuja,” said Hon. Remigio Achia, the Deputy Chairperson of the Budget Committee.
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