Uganda Airlines has embarked on a process that will lead to the termination of the contract with its fuel supplier, Dubai-based MixJet Flight Support, over delayed supply of fuel.

The Uganda national carrier has had two incidents in which the carrier’s flights were delayed at the Julius Nyerere International Airport in Dar es Salaam due to late delivery of fuel. The latest incident, which occurred on July 12, 2021, was widely shared on social media, becoming an embarrassment to the national carrier. The airline’s services from Dar were first delayed on May 13 due to late delivery of fuel.

And now Uganda Airlines has sought authority from its shareholders to exit the contract with MixJet and engage directly with suppliers for more favourable payment terms for fuel.

“Notice is given for termination of 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 airline said.

This website understands Total, which is subcontracted by MixJet, to supply fuel to Uganda Airlines also relies on another company that operates the hydrants and fuel storage facilities at Dar, Zanzibar and Kilimanjaro airports. This other company is said to have had no fuel at the time of the incident.

“As our agent, MixJet should be able to notify us well in advance of such disruptions,” said Uganda Airlines adding, “During such incidents, Total, the Mixjet subcontracted service provider in Dar, becomes non-responsive and is not reachable on phone leaving the ground teams stranded and having to liaise with Mixjet, based in the Middle East, on email which further prolongs the delays.”

Uganda Airlines is also not pleased with a clause in the contract that requires it to make advance payments for fuel, because it exposes it to possible financial loss in the event of default by MixJet.

The incident comes amid the ongoing management gaps as it has been operating without a board following the latter’s suspension together with senior managers in late April. More managers, including the commercial director, procurement manager, two pilots and a human resource officer were also sent on a three-month suspension in mid-May.

The company has also suffered reduced services as it grapples with the downturn in business imposed by Covid-19 restrictions.