The issues awaiting interim CEO Girma Wake at Uganda Airlines

KAMPALA — When President Yoweri Museveni directed that Girma Wake takes over as Acting Chief Executive Officer of Uganda Airlines and asked outgoing CEO Jennifer Bamuturaki to step aside pending a substantive appointment and audit reviews, he effectively acknowledged what many insiders had long warned: the national carrier is facing serious turbulence.

Wake, the former boss of Ethiopian Airlines credited with helping turn it into Africa’s most successful airline, is now tasked with stabilising a company struggling with mounting losses, governance questions and operational strain. His appointment signals both urgency and a test of whether Uganda Airlines can transition from a politically backed start-up into a commercially viable enterprise.

At the heart of the crisis are the numbers. The Auditor General’s recent reports show the airline posting annual losses running into hundreds of billions of shillings, driven by high fuel costs, aircraft depreciation, financing expenses and wage bills. Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has repeatedly questioned the sustainability of a carrier that continues to rely heavily on Treasury support. COSASE highlighted that the government has injected about Shs1.87 trillion into the national carrier since its 2019 revival. Cumulative losses over that period now exceed Shs1.02 trillion.

According to the Office of the Auditor General report on the airline’s finances for the year ended December 2024, Uganda Airlines posted a net loss of Shs237.9 billion, down from approximately Shs324.9 billion the previous year. The Auditor General’s office noted that this sustained loss threatens the airline’s financial sustainability and shareholder value despite improvements in efficiency.

The Office of the Auditor General has previously flagged weaknesses in internal controls, concerns over procurement processes and questions about staff structures and remuneration. Lawmakers have demanded clearer accountability over how public funds are being utilised at a time when the airline is yet to break even.

In Parliament, the Leader of Opposition Joel Ssenyonyi has been among those raising red flags. During COSASE proceedings, he questioned the justification for hefty executive and pilot pay in a loss-making entity, arguing that high salaries would be defensible only if matched by profitability and efficiency. His remarks reflected broader public unease about value for money at the airline.

“If the airline was making money it would be okay; we want workers of the airline to be paid, but you made a loss of Shs 164 billion in the financial year 2020-2021, and yet people are being paid over Shs 80 million,” Ssenyonyi said during a 2022 COSASE hearing when MPs were presented with salary figures.

That session revealed, based on the Auditor General’s report, that the CEO earned Shs87 million per month, while other top management and pilots were also on six-figure monthly packages — all while the airline recorded substantial annual losses

Beyond the balance sheet, Uganda Airlines faces an equally pressing operational challenge: a small and stretched fleet that leaves little room for error.

The airline currently operates six aircraft — two Airbus A330-800neo wide-body jets for long-haul routes and four Bombardier CRJ-900 regional jets. In aviation terms, that is a thin fleet for a carrier running both regional and intercontinental schedules. Any technical fault, routine maintenance delay or crew constraint can quickly ripple across the entire network.

The problem has not been theoretical. In recent years, passengers have complained of long delays and last-minute cancellations, particularly on long-haul routes such as Entebbe–London and Entebbe–Dubai. In some instances, travellers have reported being stranded for more than 24 hours after aircraft developed technical issues. Airline officials have acknowledged the vulnerability. A company spokesperson previously admitted that the core issue is fleet size, noting that when one aircraft is grounded, it immediately disrupts the entire schedule because there is no backup capacity.

The situation has been compounded by maintenance challenges affecting the CRJ-900 regional jets. The aircraft model was discontinued by manufacturer Bombardier, making spare parts more difficult and sometimes more expensive to obtain. At least one regional jet has in recent months been grounded for extended periods while awaiting parts, further tightening capacity and increasing pressure on the remaining aircraft.

On the long-haul side, the airline relies on just two Airbus A330-800neos to cover key international destinations. With only two wide-body aircraft, even minor technical issues can force rescheduling across multiple routes. Unlike larger airlines that can swap aircraft within a bigger fleet, Uganda Airlines has virtually no redundancy. The result is a fragile operation where disruptions in one corridor quickly spill into others.

Industry analysts say such fleet limitations increase operating costs, strain crew scheduling, and undermine customer confidence. For a national carrier trying to build a brand in competitive regional and international markets, repeated delays and cancellations can damage its reputation and affect future ticket sales.

Governance concerns have also cast a shadow over the carrier. Investigations involving the Criminal Investigations Directorate and the State House Anti-Corruption Unit have sought documents relating to procurement and financial management. Allegations ranging from procurement irregularities to conflict-of-interest claims have surfaced in media and parliamentary debates, further denting public confidence.

For Wake, the challenge will be multidimensional. Financial restructuring must go hand in hand with operational stabilisation. He will need to tighten cost controls, improve aircraft utilisation rates, strengthen route profitability analysis and restore staff morale — all while navigating political expectations that often accompany a state-owned enterprise.

Equally critical will be governance reform. Without strong internal controls, transparent procurement systems and a clearly defined management structure insulated from undue interference, even the most experienced aviation executive may struggle to deliver sustainable results.

Yet Wake’s track record offers cautious optimism. At Ethiopian Airlines, he oversaw aggressive expansion, forged strategic partnerships and built a disciplined corporate culture that turned the carrier into a continental powerhouse. Replicating that model in Uganda, however, will require adapting it to a smaller market, limited capital base and different institutional environment.

Ultimately, Uganda Airlines’ future hinges on whether this leadership transition marks a cosmetic change or a structural reset. For taxpayers who have poured billions into reviving the national carrier since its relaunch in 2019, the expectation is clear: fewer delays, tighter management, and a credible path to profitability.

Wake’s task is not merely to keep the planes flying. It is to restore confidence — in the airline’s books, its boardroom and its brand.