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Home Business No more hope for Uganda airline as Canadian fleet financier pulls out

No more hope for Uganda airline as Canadian fleet financier pulls out

by James Ateenyi

Uganda Airlines’ plan to take to the skies by April 2019 has run into another hurdle after the Export Development Canada (EDC), which had committed to funding the acquisition of its debut Bombardier fleet, pulled out of the deal citing “commercial reasons.”

The Ugandan national carrier had in July announced a partnership agreement with Bombardier for the purchase of four CRJ-900s which were to be delivered from January 2019, to prop-up its regional operations.

The EDC, which had committed to extend $108 million to Uganda for the purchase of the aircraft, pulled out of the deal a fortnight ago.

“Uganda’s Treasury officials have already received the EDC communication over their new position. This was done through the Canadian diplomatic channels,” a source said.

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