The general manager of Uganda Air Cargo (UCC, Entebbe), Lakibus Lakara, has recommended disposing of the airline's grounded fleet due to its poor condition and prohibitively high repair costs.
Appearing before Uganda's Committee on Defence and Internal Affairs on March 26, he emphasised the dire condition of the aircraft. Despite being potentially repairable, the costs outweigh the benefits and disposing of them is more cost-effective.
"I have no aircraft in the air as we speak. One is in the hangar under repair. Although one is repairable, the cost of repair does not make economic sense. So the process now is to see that we dispose of those aircraft [rather] than keeping them on the ground," he said.
Committee chairman Wilson Kajwengye clarified that the disposal process would fall under the Ministry of Defence's jurisdiction, with the parliament ensuring legal compliance.
Due to inadequate operational funds, Uganda Air Cargo Corporation (UACC) has been dormant for years. According to an official report on the Uganda parliamentary website, it possesses five aircraft, three awaiting disposal and two undergoing repairs.
UACC is a subsidiary of the National Enterprise Corporation (NEC), which falls under the oversight of the Uganda People's Defence Force (UPDF). The ministry has requested UGX381 billion shillings (USD98.6 million) for new aircraft procurement but faces budget shortfalls, with only UGX3.8 trillion (USD984 million) allocated of its UGX7.9 trillion (USD2 billion) budget proposal for 2024/2025. Defence Minister Jacob Oboth has appealed for assistance in mobilising funds to bridge this gap. UACC has long been looking to acquire a B737 freighter.
The meeting was called to address concerns raised by the committee regarding the Defence Ministerial Policy Statement for the 2024-25 financial year. The Ministry of Defence is spending UGX400 million (USD103,400) monthly to transport troops to Somalia and other locations due to the grounding of Uganda Air Cargo's fleet. Defence Ministry Permanent Secretary Rosette Byengoma informed the committee that Uganda Air Cargo had been outsourcing flights, resulting in financial losses for the government. She urged funds to be allocated to repair the grounded aircraft to mitigate these losses.
The carrier faced a significant setback in 2014 when it lost its Air Operator's Certificate (AOC), leading to the grounding of its fleet, which at the time comprised two Lockheed C-130 Hercules and two Y12 turboprops. Consequently, crucial contracts with the United Nations Humanitarian Air Service (UNO, Brindisi) were terminated. Despite several efforts to revive its operations, the latest in December 2023, UACC has remained inactive. According to ADS-B data, its C-130 Hercules 5X-UCF (msn 382-4610) has been grounded at Tel Aviv Ben Gurion since January 2022.
