Uganda Airlines’ Strategic Fleet Growth

Uganda Airlines has been navigating a complex web of short-term solutions and long-term plans for its fleet expansion. The journey began with a capacity crunch, necessitating a temporary fix that would eventually lead to more sustainable growth.

Regional Aircraft

When Uganda Airlines launched operations, they began with a fleet of two CRJ900s and quickly added two more CRJ900s to grow their fleet to four jets and these have remained with the airline since then with no other regional aircraft being added.

Medium Haul Wet-Lease Era

The airline’s recent history started with a series of wet-leases to bolster its capacity. These short-term arrangements were meant to bridge the gap until more permanent solutions could be implemented. However, the wet-leases had their limitations:

• The most recent A320 wet-lease ended in October, as per Uganda Civil Aviation Authority regulations limiting wet-leases to six months.
• The subsequent arrangement, set to begin in November, will involve a 9 year-old aircraft from Danish Air Transport.

This stopgap measure highlights the airline’s ongoing struggle to maintain adequate capacity while awaiting more substantial fleet additions.

The Road to A320neo

Uganda Airlines’ long-term plans involve transitioning from these short-term solutions to more modern aircraft:

• Two A320neo jets are planned for delivery in June 2025, serving as a bridge between the current capacity crunch and future growth.
• These new arrivals will address medium-haul needs until the arrival of four additional A320neos ordered directly from Airbus.

The timeline for these deliveries is ambitious, with the first A320neo jets set to arrive just months after the conclusion of the wet-lease arrangements. This rapid succession underscores the airline’s commitment to expanding its fleet capabilities.

The Boeing Switch: A Surprise Move

While focusing on Airbus aircraft, Uganda Airlines has also made headlines with an unexpected decision regarding its long-haul operations:

• The carrier intends to order two B787 widebodies from Boeing.
• This move comes as a surprise, given the airline’s previous focus on Airbus aircraft.

According to officials, this switch was driven by “internal reasons for more engine options which the A330 was not providing at present.” The choice of Boeing over Airbus represents a significant shift in the airline’s strategy and partnerships.

Challenges with Current Long-Haul Fleet

Despite having two A330-800 Neos in its fleet, Uganda Airlines has faced challenges with these aircraft:

• The A330s have been underutilized, failing to meet minimum monthly flying hours required for chargeable revenue.
• Instead of operating long-haul routes as planned, the aircraft were deployed on short regional flights, resulting in more cycles but less revenue.
• This underutilization led to earnings shortfalls and arrears in agreed monthly engine fees.

Turning Point: New Routes and Improved Utilization

Despite all the setbacks, the airline is working to address these challenges:

• The A330s have recently been deployed to Mumbai, India, marking a positive shift in route strategy.
• An upcoming launch of 4x weekly flights to London is expected to increase aircraft utilization and bring improved revenue generation.
• While the exact launch date for the London route remains uncertain, it’s scheduled for March 2025.

This new focus on medium-haul routes and international connections could potentially revitalize the A330 fleet’s performance and justify the investment in Boeing widebodies for future long-haul operations.

In conclusion, Uganda Airlines finds itself at a crossroads, balancing short-term capacity needs with long-term strategic plans. As the airline navigates this complex landscape, it faces both challenges and opportunities that will shape its future in African skies.