Uganda Airlines is looking into measures to help local suppliers get a larger share of the $95 million it wants to spend on procurement during the 2024–2025 fiscal year. The funds will be divided between works, services, and supplies.
By the end of 2024, the national carrier anticipates reaching the 700,000 passenger mark thanks to increases in capacity and frequency on important routes. At the airline’s inaugural supplier event this week in Kampala, where local suppliers were briefed on both current and upcoming prospects at the flag carrier, the numbers were revealed.
In the five years that the airline has been in business, local contracts have paid out Ush120 billion ($32.3 million), according to Chief Executive Officer Jenifer Bamuturaki. The database of local suppliers has expanded to 200. She also bemoaned, meanwhile, the difficulties the airline has had maintaining consistency and quality, which has frequently compelled it to import goods that might be made domestically.
According to Ms Bamuturaki, local suppliers must consider being globally competitive for their expansion to assist the carrier’s cargo operations and domestic export market.
The demand for onboard consumables is rising as the airline expands its network and the number of passengers rises, according to her, with 90% of them coming from local vendors.
Uganda Airlines anticipates reporting 480,000 passengers flown during fiscal year 2023–2024, based on preliminary figures. Nonetheless, it is anticipated that there would be roughly 700,000 passengers in 2024.
The network, which currently has 13 destinations, is growing due to up-gauging aircraft on regional routes, increasing frequency on important routes, and network development. The airline expanded its fleet in May by adding a leased A320 with 156 seats.
In addition to making space for additional frequencies, the aircraft has allowed the carrier to meet the increasing demand on routes like Nairobi, Kinshasa, and Johannesburg.
Nairobi, which is now served sixteen times a week, will expand to two flights a week starting in July. That is three flights each day, six days a week, excluding Saturday. There will be six instead of five days per week in Kinshasa, and four more days of double daily flights in Juba, for a total of nine flights per week.
After severing ties with Zanzibar, Dar es Salaam will now run five flights per week instead of just one. Kilimanjaro and Zanzibar will now be combined, with three weekly flights between the two locations.
“We remain committed to working with you to expand the range of products that you can supply on competitive terms. But we also want you to grow with us by transforming into globally competitive companies that can supply quality products not just Uganda Airlines but the global legacy airlines.”
“But you will need to concentrate effort on improving quality across packaging, consistency in taste and supply,” Ms Bamuturaki said.
She further stated that because its suppliers will help fill the cargo capacity, the company—which plans to start a specialized freighter service—sees their success as essential to its sustainable expansion.
She also directed them toward new growth opportunities, such as planting feedstock for energy firms as the first step in the sustainable aviation fuel value chain.
