Uganda Airlines (Entebbe/Kampala) has firmed up a Memorandum of Understanding (MOU) with Airbus (AIB, Toulouse Blagnac) for two A330-800s. The preliminary order for the widebody jets was signed during the 2018 Farnborough Air Show.
According to a parliamentary report submitted on March 26, the two A330neo are tentatively due to deliver during the final quarter of 2020. They cost USD108 million each of which a deposit of USD1.1 million was put down last year. A further USD10 million dollars was to be paid for each jet by March 31. The full USD20 million is, therefore, presumed to have now been paid given Airbus's confirmation of the order. The next instalment date is October 31, 2019, when the state will again pay USD26,748,476 for each aircraft. The balance is due to be settled by October 2020.
Aside from the A330neo, Uganda Airlines also has four CRJ-900s on order from Bombardier (BBA, Montréal Trudeau). The first two regional jets were to have delivered on March 26 with the remaining two to deliver in July and September of this year.
Although a total of UGX1.26 trillion (USD336.8 million) was allocated by parliament during its FY2018/19 budget for the purchase of all six aircraft, an additional UGX280 billion Ugandan shillings (USD75.6 million) was required to pay off the balance due on the first two CRJs (USD41.55 million or USD20.775 million x 2) and secure spare parts (USD5 million). The airline also required USD29.9 million to fully refund the government for funds that were to have been used to cover initial capitalization costs but which were ultimately used to pay the deposit for the four CRJs (USD27.7 million or USD6.925 million x 4) after the government failed to secure external financing.
However, given that parliament only agreed to disburse the required UGX280 billion on March 29, the first of the CRJs, 5X-KOB (msn 15457), will now only arrive in Entebbe/Kampala on April 23.
Uganda Airlines hopes to complete its AOC drive and launch soon after the reception of its first aircraft.