Dubai, (UG):- A Dubai-based fuel contractor, MixJet Flight Support issued an ultimatum of 48 hours to the National Flagship Carrier, Uganda Airlines for the clearance of at least $6 million of the $10 million (about Shs37 billion) the airlines owes it.
The Airlines, according to information this website has obtained, had reportedly committed to first pay $2 million as part of the ongoing efforts to address the outstanding debt. However, the contractor is yet to receive the funds which cover only a quarter of the debt.
“Without an additional payment of $4 million, we will be unable to settle critical dues…,” a source at MixJet said before adding that the delay in payment is affecting their ability to maintain services for their other clients.
According to inside sources at Entebbe, it is understood that MixJet wrote to Uganda Airlines Chief Executive Officer, Ms Jenifer Bamuturaki on November 1, 2024, requesting an immediate payment of at least $6 million within 48 hours, failure of which would leave the contractor with no option but to halt all services and “pursue legal avenues to recover the owed balance.”
The contractor also warned that if legal action is taken responsibility would rest “solely with Uganda Airlines’ management, as the situation is critical and requires immediate action.”
Further information obtained shows that Uganda Airlines signed a contract for global fueling with MixJet, which then subcontracts other suppliers on the ground to deliver the service on its behalf. Although the contract requires that MixJet should receive priority, a source at Uganda Airlines said the management has been making advance payments to other suppliers in four locations.
The said suppliers charge higher rates than those quoted by MixJet, according to our source who argued that the practice not only strains Uganda Airlines’ cash flow but also suggests a lack of fair treatment “and may constitute a breach of contract by diverting business from MixJet without valid justification.”
Another source at the national carrier who’s not authorized to speak to the media said the delayed payment jeopardizes the continuation of Uganda Airlines flights to Dubai and Mumbai for November.
Uganda Airlines was contacted for a comment on the matter but repeated phone calls to one Shakila Rahim, the Airlines’ head of corporate affairs and Ms Bamuturaki, went unanswered by the time of filing this story.
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