The Uganda government has signed a deal to buy shares in Air Uganda which is currently owned by Aga Khan Fund for Economic Development.
Air Uganda is the country’s national carrier following the collapse of Uganda Airlines in May 2001.
President Yoweri Museveni signed a deal on Thursday with H.H the Aga Khan at the Mandarin Oriental Paris Hotel in Paris.
Air Uganda uses a fleet of three aircraft to operate scheduled flights from Entebbe to various countries in Eastern and Central Africa.
Headquartered in Kampala, U7 operates a fleet of 3 CRJ200 jets, after offloading the fuel guzzling MD87 aircraft.
It presently flies from Entebbe to Nairobi and Mombasa in Kenya, Dar es Salaam and Kilimanjaro in Tanzania, Kigali, Bujumbura, Juba and of late even Mogadishu, making it 9 regional destinations.
The buy-in by the Ugandan government, though still required to go through a due process, will set the stage in the medium term to eventually float an IPO and let the wider public in Uganda acquire shares through the Uganda Securities Exchange.
This will make it truly the national airline, key local staff of Air Uganda have always aspired for it to become.
