Air Uganda has indefinitely suspended its operations in Uganda with immediate effect. According to a statement released by the airlines Chief Executive Officer Cornwell Muleya, the indefinite suspension is as a result of the delays by the Uganda Civil Aviation Authority to issue the Air Operation certificate to the flight company.
This, according to Muleya, resulted into ceasing operations of the aircraft for 31 days and yet the hopes of acquiring the certificate are weeks away. Consequently, these delays have affected the lease contract that Air Uganda had with the official owners of the air crafts. Muleya say that the air craft lease agreement could remain binding only if the airline continues flying, a clause they breached due to the delays from CAA.
This has left the airline with no choice but to return the aircraft to the lessor’s chosen facility abroad. Coupled with the prolonged inability to generate any revenues, the board of directors resolved that the airlines folds its wings and close operation. This means that all the staff will be laid off.
