The Civil Aviation Authority (CAA) has clarified on reports that it is seeking shs150bn to reopen Entebbe International Airport.
On Wednesday, a local publication reported that the CAA needs the money to prepare the airport as the country eases restrictions imposed to stop the spread of COVID-19.
According to a statement issued on Thursday, the authority says it needs the money as the source of revenue was cut off when flights were suspended.
“While the Authority previously collected an average of 20 billion shillings per month, in April 2020, only about 1 billion shillings was earned, the situation is worse at the moment and is not likely to improve in the next few months. The aviation industry will not immediately pick up in terms of passenger traffic even when passenger operations resume. This implies that the current financial shortfalls may prevail for the entire financial year (2020/2021) yet the Airport will be expected to render the same level of service amidst higher international expectations in a bid to restore confidence on measures in place to combat the spread of COVID-19 through air transport,” the statement says.
UCAA is mandated to regulate air transport in Uganda, manage and operate Entebbe International Airport and other aerodromes. It derives revenue for day-to-day running of activities, including infrastructure upgrade from air traffic in and out of the country.
Suspension of passenger operations in March 2020 had an impact on this revenue, which is used to sustain operations at Entebbe International Airport.
The statement adds, “The airport currently experiences space constraints leading to congestion, especially at peak hours, which calls for more space to avoid long queues. More advanced equipment for the Search Park, new Cargo Centre and existing terminal will also be required. All these (a number of which had been budgeted in anticipation of steady income) require massive financing yet the revenues have dwindled. UCAA substantially finances recurrent and development expenditure using internally generated revenue, which (as indicated) is not available at the moment.”
To allow social distancing, waiting areas including the Karibuni business class lounge, are being expanded or relocated, while doors and faucets shall be replaced with others with motion sensors.
BELOW IS THE FULL STATEMENT
Uganda Civil Aviation Authority Clarifies on Shs150 Billion Bailout From Government
For the first time in its history, Entebbe airport has been closed for more than two months, a move that has left the self-supporting Uganda Civil Aviation Authority (UCAA) gasping for financial breath, and seeking a Shs150 billion bailout from the Government.
Tentatively, the airport is meant to reopen on June 26, although by last week UCAA was readying the airport for Ugandans locked abroad that were allowed by the government to return to Uganda.
According to UCAA’s Manager Public Affairs Vianney Mpungu Luggya, the authority has now asked government for Shs 150bn support to ready the airport for resumption of flights in accordance with standard operating procedures as required by the International Civil Aviation Organisation (ICAO) and health ministry.
UCCA has come out to clarify on the bailout as the populace took it in a wrong way.
In a statement by UCCA’s management, the Authority previously collected over Shs20 Billion every month when at full functionality, as opposed to Shs1 Billion that was collected in the month of April.
“While the Authority previously collected an average of 20 billion shillings per month, in April 2020, only about 1 billion shillings was earned, the situation is worse at the moment and it is not likely to improve in the next few months. The Aviation industry will not immediately pick up in terms of passenger traffic even when passenger operations resume. This implies that the current financial shortfalls may prevail for the entire financial year (2020/2021) yet the airport will be expected to render the same level of service amidst higher international expectations in a bid to restore confidence on measures in place to combat the spread of COVID-19 through air transport,” the statement partly reads.
To allow social distancing, waiting areas including the Karibuni business class lounge, are being expanded or relocated, while doors and faucets shall be replaced with others with motion sensors.
“The money shall be used for those changes, but also to support our other operations, now that we are not earning,” Eng Ayub Sooma, the director, Airports and Aviation Security said last week.
The statement further noted that the number of planes and cargo handled by the airport has since the lockdown tremendously reduced.
“Entebbe used to experience between 90 and 120 flights per day, which have now reduced to between seven and 14 per day – mainly cargo and emergency flights,” Luggya said. “It is not a sustainable situation for the aviation industry.”
The statement clarifies that the 150 Billion shillings bail-out is meant to help with maintenance, and to help with operational costs as measures to include social distancing are being put in place.
“The 150 billion shillings bail-out that the Authority requested is meant to meet maintenance, operational and other associated costs for a whole year from July 2020 to June 2021. It is not a precondition for reopening of the airport like is the impression that may have earlier been created. It is to ensure smooth operations amidst the additional and urgent requirements occasioned by COVID-19,” the statement concludes.
