Entebbe, Uganda – In a developing story that could significantly impact Uganda’s national carrier, MixJet Flight Support, a Dubai-based fuel contractor, has issued a stark ultimatum to Uganda Airlines, demanding the immediate payment of at least $6 million of a total debt amounting to $10 million.
The ultimatum comes as the airline struggles to address its outstanding financial obligations and maintain its operational integrity.
MixJet’s warning, communicated in a letter to Uganda Airlines CEO Jenifer Bamuturaki on November 1, 2024, allows the airline just 48 hours to respond.
The contractor emphasized that failure to pay the substantial sum would result in a suspension of all services, which could disrupt crucial flight operations, particularly to destinations such as Dubai and Mumbai.
According to internal sources, Uganda Airlines had previously committed to making a payment of $2 million as part of an effort to settle its debts with MixJet.
However, the contractor reports that it has yet to receive these funds, which only cover a quarter of the total debt owed. A MixJet representative noted, “Without an additional payment of $4 million, we will be unable to settle critical dues, impacting our ability to provide services to all clients.”
The situation is compounded by allegations that Uganda Airlines has been prioritizing payments to alternative suppliers, which charge significantly higher rates than those set by MixJet.
Sources within Uganda Airlines suggest that this practice not only strains the airline’s cash flow but may also constitute a breach of contract, as it diverts business away from MixJet without sufficient justification
“The management’s approach to payments has raised serious questions about fairness and compliance with our contractual obligations,” said an insider who requested anonymity. “The delayed payments jeopardize not just operations but the airline’s reputation as a reliable carrier.”
This financial predicament poses a serious threat to Uganda Airlines, which has been striving to establish itself as a competitive player in the aviation market.
With critical flights on the line, the pressure mounts for the airline to respond swiftly and decisively.
Attempts to secure a comment from Uganda Airlines have been unsuccessful, as repeated calls to corporate affairs head Shakila Rahim and CEO Jenifer Bamuturaki went unanswered.
The unfolding situation calls for immediate attention from the airline’s management to avert a potential crisis that could reverberate throughout its operations and passenger trust.
As the deadline approaches, all eyes are on Uganda Airlines to see how it will navigate this challenging predicament and maintain its commitment to providing essential services to its customers.
If left unresolved, the consequences could extend beyond financial ramifications, impacting the airline’s future viability in an increasingly competitive industry.
