CAA Clarifies on the UGX 150 million financial Bail out

The Uganda Civil Aviation Authority, CAA has revealed that it has suffered a great loss, following the suspension of passenger flight in March 2020, following the outbreak of the Coronavirus pandemic in Uganda.

CAA Clarifies on the UGX 150 million financial Bail out
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The Uganda Civil Aviation Authority, CAA has revealed that it has suffered a great loss, following the suspension of passenger flight in March 2020, following the outbreak of the Coronavirus pandemic in Uganda.

The CAA which is mandated with regulation, management and operation of Entebbe International Airport and other aerodromes derives revenue for day to day running of activities from air traffic in and out of the country.

Recently, the authority sent tongues wagging when it was revealed that 150 billion shillings was needed by the authority to sustain operations for the new financial year. Some members of parliament even said this was uncalled for, considering the authority already had a budget before closure of the airport, and should be added just 30 billion to supplement that.

But a statement from CAA management indicates that while the authority previously collected an average 20 billion shillings per month, in April 2020, only 1 billion shillings was collected.

“In April 2020, only 1 billion shillings was earned. The situation is worse at the moment and is not likely to improve in the next few months. The aviation industry will not immediately pick up in terms of passenger traffic even when passenger operations resume” the document reads.

Management indicates that the current financial shortfalls may prevail for the entire financial year 2020/21 yet the airport will be expected to render the same level of service amidst higher international expectations in a bid to restore confidence on measures in place to combat the spread of COVID19 through air transport.

The letter further indicates that Airport operational costs are high even during the current period where there are limited flights since international safety regulations require certain protocols in place whether the airport is handling the 90-120 flights per day that Entebbe used to handle before the pandemic, or the current 7-14 cargo and emergency flights.

“The 150 billion shillings bail out that the authority requested for, is meant to meet maintenance, operational and other associated costs for a whole year from July 2020 to June 2021. It is not a precondition for reopening for the airport like is the impression that may had earlier been created. It is to ensure smooth operation amidst additional and urgent requirements occasioned by COVID19” the letter clarifies.

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