Reuters has announced Uganda Airlines has launched commercial flight service following its liquidation in 2001, the news reporting service said.
Uganda is the latest African government to boost funding of national flag carriers. Tanzania and Senegal are also resurrecting their airlines, while Rwanda, Ivory Coast and Togo are expanding theirs.
High business costs as well as protectionism, have impeded a continental open-skies agreement, which is vital for the success of African carriers, according to industry experts.
International Air Transport Association (IATA) forecasts a 5% year-over-year growth in the African market, in terms of passengers. IATA said the global aviation industry is on track to make a profit of USD 28 billion in 2019, but African airlines are projected to make combined losses of USD 100 million.
Uganda Airlines aims to attract more domestic travelers to help it buck the gloomy continental trend. Around 2 million passengers per year travel through Entebbe, Uganda´s main airport. Around 70% are Ugandans, said the carrier.
Uganda Airlines, founded by former dictator Idi Amin in 1976, was liquidated in 2001 after years of unprofitability during a push to privatize state firms.