Uganda Airlines' Architecture of a Turnaround: Reliability Takes Center Stage

Ato Girma Wake, who took the helm as acting chief executive of Uganda Airlines five months ago, is focusing on rebuilding the carrier's reliability as the cornerstone of its turnaround. Wake inherited an airline with ambitious long-haul goals but a struggling regional network unable to support them, compounded by grounded aircraft and costly wet-leasing arrangements.

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Before an airline can become profitable...Before it can grow...Before it can compete...It first has to become reliable.

Wake's immediate priority is not fleet expansion, which has dominated past headlines, but establishing operational dependability. He highlighted that nearly 60 percent of Uganda Airlines' fleet capacity was unavailable when he joined. This lack of available aircraft meant they could not generate revenue, carry passengers, or support long-haul services, forcing the airline into expensive wet-lease alternatives to maintain its schedule and public confidence.

Operating wet-leased aircraft is nearly three times more expensive than dry leases, significantly eroding profitability. However, canceling flights would have further damaged passenger trust. Consequently, Uganda Airlines has been incurring substantial costs simply to remain operational over the past year.

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When he arrived, nearly 60 percent of Uganda Airlines' fleet capacity was unavailable.

The situation is beginning to improve as the airline works to bring more aircraft back into service. The Airbus A330 is expected to return in January, a grounded CRJ will be back within weeks, and additional engines are undergoing maintenance. As capacity increases, the airline anticipates reduced dependence on wet leasing, leading to lower costs, better aircraft utilization, and improved schedule reliability, key elements for its recovery.

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Operating wet-leased aircraft is almost three times more expensive than operating aircraft under dry lease arrangements.