AVIATION NEWS | Airspace Africa | A recent report by the Auditor General of Uganda highlighting the financial Performance of Public Corporations and State Enterprises has laid bare the devastating effects of the global pandemic on Africa’s aviation industry with the new National Airline and the Uganda Civil Aviation Authority in the spotlight.
The African Airlines Association (AFRAA) estimates that African airlines made a revenue loss of US $10.21 Billion in 2020 due to the effects of covid-19 and AFRAA continues to advocate for urgent financial support for African airlines.
AFRAA believes African governments can play a huge role in providing much needed relief to the industry through grants, loans, loan guarantees and by deferring or waiving charges and taxes
The Uganda Auditor General’s report identified a number of state owned entities that had their performance reduce in the 2019-2020 financial year due to the impact of Covid-19 in the last half of the financial year.
The worst performing State Enterprise was Uganda National Airlines Company Limited with losses of UGX.102.4 Billion (US $27.9 Million)
Because of the large initial capital investment required to set up the airline coupled with the worst crisis in aviation history, which wiped months off the operational calendar, the national carrier predictably had a low Return On Asset score.
READ FULL STORY AND FINANCIAL REPORT HERE (CLICK)
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