Dubai firm threatens legal action against Uganda Airlines over Shs37b fuel debt
A Dubai company is threatening legal action for UGX 37 billion in fuel debt, putting Bamuturaki Uganda Airlines in jeopardy.
Uganda Airlines is given a deadline by Dubai-based fuel provider Mix Jet Flight Support to pay at least $6 million.
The airline runs the possibility of being sued if it doesn’t fulfill the fuel supplier’s 48-hour deadline
The national carrier’s debt to Jet grew over several months, which prompted the supplier to adopt a tough attitude. According to sources, Uganda Airlines first promised to make a $2 million partial payment.
The demand for a larger payment, however, coincides with the airline’s continuous attempts to handle financial difficulties impacting tourism in uganda.
According to industry analysts, any interruptions in the fuel supply might have a significant impact on Uganda Airlines’ reputation and service delivery, especially in the tourism market.
Uganda Airlines is apparently considering ways to settle the dispute and avoid any legal action in response to the ultimatum. The airline has not yet made an official announcement about the matter or provided a payment schedule.
The demand for MixJet Flight Support highlights the financial difficulties regional national carriers are facing, especially in light of rising operating expenses and volatile fuel prices.
If the matter goes to trial, Uganda Airlines could have to deal with operational and legal issues.
Compiled by
World Travel News, Gorilla Trekking Uganda and Gorilla Trekking Rwanda
