The ministers whose ministries each own a 50 per cent stake in the airline said this during the inauguration and swearing in of the new board of directors of the national airline at Hotel Africana last week having been approved by the cabinet on March 7, 2022.
Katumba revealed that the government has so far invested Shs 2 trillion in the airline and all the aircraft were paid in full amount with no debt on them and since all this is taxpayers’ money, the airline must be treated like a business such that it earns back profits.
“The airline must run as a business, and not as a parastatal; this is a business asset to the nation. As a board, you are charged with the strategic management role to achieve the vision of making Uganda Airlines a world-class airline exceeding customer expectations through high-quality service, global connectivity and commitment to excellence,” Katumba said.
Katumba further advised the new board to develop an institutional and effective business plan, review the staff establishment and salary structures and manage the running and operational costs of the airline affordably so as not to drain the national economy.
“Make the company compete favourably and profitably with other airlines and this requires working to expand the company’s business portfolio by looking at opportunities in short and long-range aircraft and building business partnerships with other airlines around the world.”
Musasizi, on the other hand, told the new board that since the airline is still in its initial stages, they need to come up with a very good strategic plan supported by a good business model which will enable it to favourably compete in the market and also be able to make profits for the government.
“We want an airline that is managed in an efficient and effective manner. You must work around how to reduce cost, come up with competitive rates and how to respond to customer needs while bearing in mind that as much as the airline is government-owned, its reason of existence is to make money in the long run and also promote other government interests particularly tourism,” Musasizi said.
The new board replaces the one which was led by Perez Ahabwe that was terminated in April last year by President Museveni on allegations of corruption, mismanagement and other malpractices.
It consists of seven members that include Priscilla Mirembe Serukka who is the chairperson, Samson Rwahire, Herbert Kamuntu, Patrick Ocailap, Barbara Namugambe, Abdi Karim Omoding and Captain Ebrahim Sadrudin Kisoro.
Priscilla Mirembe Serukka, the new board chairperson, said their role will not be to manage but to carry out the mandate of guiding the airline to fulfil its corporate mission and translate its vision into reality as well as give strategic direction to management and protect the company’s assets so as to ensure survival and prosperity in a transparent and accountable manner.
“As the board, we would like to see the airline run in a purely business model with relevant working committees and structures and we hope that any hindrances to that will be removed. We, therefore, request for a conducive working environment for all this to happen,” Serukka said.
Meanwhile, Ramathan Ggoobi, the secretary to the Treasury, advised the new board to create a strategic plan to turn around the airline in its first 90 days and recruit a competent team of staff from CEO to the last person.
“Put in a place a robust accounting system to ensure that the airline runs transparently and efficient because going forward, there is no room for corruption, mismanagement incompetence, unprofessionalism or wastage of resources in Uganda Airlines,” Ggoobi said.
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