By Spy Uganda
Kampala: According to our highly placed sources, Uganda Airlines is in final stages of canceling its contract with a fuel supplier, MixJet Flight Support, after a couple of embarrassments that have seen the carrier delay its scheduled movement plan due to delayed supply of fuel on several occasions leaving passengers stranded.
In the latest incident, Uganda Airlines had to go for an unplanned break of at least one hour and a half at Julius Nyerere International Airport in Dar es Salaam after late delivery of fuel by Mixjet despite early payments by the carrier. The supplier later explained that the delay was due to heavy traffic jam halting their fuel trucks for hours in jam,there by delaying to arrive in time at the airport to supply their client,Air Uganda.
But according to our sources, this was the second time the same was happening, noting that on May 13, 2021, Airline’s services from Dar es Salaam were first delayed due to late delivery of fuel something that Airline bosses say can’t go ahead to tolerate.
According to the contract, Uganda Airlines agreed with MixJet, which then subcontracts other suppliers on the ground like Total to deliver the fuel on its behalf, to fuel the carrier at Entebbe and Dar es Salaam airports. Also, the contract requires Uganda Airlines to pay for all its fuel stock a month in advance which the airline bosses say have been perfecting without delay.
The source says it is from the above background that the carrier is now considering terminating the contract with MixJet.
“Notice is given for termination of the contract with Mixjet and a new competitive and transparent procurement process is initiated to cater for the services currently provided for in the MixJet contract,” the source quoted the Uganda Airline statement.
The Airline has been dealing with losses ever since its resumption and according to pundits, such could be a result of ineffectiveness from service providers like Mixjext.
According to the office of the Auditor General, its report to Parliament for FY2020, reported in Feb-2021, showed that the Airline started its first year of operation with UShs 102 billion loss from UShs 15 billion loss in the 2018/19 financial year.
The losses were attributed to the fact that Uganda Airlines spent roughly US$29.2 million on direct costs and US$3.6 million on indirect costs.
That is to say, the airline was living way beyond its means as it realized a paltry US$ 9.9m from the projected US$92.8 million revenue.