Air Uganda confirms indefinite suspension of operations

Air Uganda confirmed (18-Jul-2014) it suspended operations indefinitely. The airline stated an audit of Uganda's Civil Aviation Authority by ICAO between 11-Jun-2014 and 17-Jun-2014 revealed shortcomings in the authority's oversight and regulatory capacities, impacting its ability to award air operator's certificates (AOC). The authority withdrew AOCs for all international commercial carriers registered in Uganda on 17-Jun-2014 and Air Uganda suspended operations pending approval of a new AOC. The airline reported "massive financial losses" and "reputational damage" as a result of the grounding, which also affected key contracts, particularly aircraft lease agreements. The prolonged recertification process resulted in the airline being obligated to return aircraft to lessors and deciding to suspend of all operations due to its inability to generate revenue. [more - original PR]