The Uganda Airlines is expected to start commercial flights in April next year following the acquisition of four new CRJ900 regional jets from Bombardier Commercial Aircraft.
But this plan may hit a snag after the Export Development Canada (EDC) pulled out of the deal citing “commercial reasons.”
In the deal, the EDC was to give Uganda $108million but this won’t be happening according to diplomatic sources as the credit agency was undergoing restructuring.
The Airline which has set January 2019 as the commencement time for inbound flights may have to postpone to allow time for a new sponsor to come on board.
Sources in the Finance Ministry also say the withdrawal of the Canadian lender has triggered an avalanche of new offers that are “cheaper than the 3.5 per cent that the Canadian financier was offering”.
Minister for Works and Transport Monica Azuba told Matooke Republic that the deal to get the jets from Bombardier is not affected.
“We have already finalised the CRJ contracts with Bombardier and have paid a commitment fees of $400,000. We are also expecting to receive two Airbus A330-800 Neo in 2020, for which we have paid a commitment fees of $800, 000,” she said.
