Implement Business Plan to Save Uganda Airlines – Ex Chief Executive Officer (CEO) Muleya – African Business

Cornwell Muleya, Uganda Airlines’ former Chief Executive Officer (CEO), has stated that Uganda Airlines is struggling to break even due to its failure to implement its business plan.

Muleya claimed he was first appointed by the Prime Minister as a consultant. Joel Ssenyonyi was present on Wednesday, 24 august 2022.

The committee is probing into the operations of the airline on the back drop of the Auditor General’s report for the financial year ended 2021.

The airline’s former chief executive stated that they are currently flying far fewer hours and routes than they should, partly due to a lack of partnerships and airlines that would expand their routes to more travelers.

Muleya, a Zambian national, explained to the committee how the airline lacks the structure and system needed to support its entire growth plan.

“Without critical mass, the airline will not break even, because you remain too small for the investment you have made. The business plan has to be implemented in its entirety for it to bring the payback,” he said.

He said the Airbus A330 for instance,  is currently flying 33 hours a month to only one destination, and yet it is meant to fly at least 10, 12 or 15 hours a day and the routes need to be opened to create the feed in the business plan.

Muleya stated that he was a consultant and was earning Shs70m per year. His salary rose to Shs118m when he was appointed acting CEO and Shs126m when he was confirmed.

He stated to the committee that he was expelled from the airline due to claims of corruption and that things were not going well. But he was determined and focused to see the airline succeed.

“When I came in, there was nothing like Uganda Airlines here. There was no plan, desk or papers. Nothing! I had to create the plan and negotiate, which is no small task.  I was going into meetings reading documents of 300 pages on airline purchases on my own,” he revealed.

Muleya, who denied any wrongdoing while at the helm, said to the committee that there were many external factors that interfered with the recruitment process. He believes that his intolerant for corruption could have cost the job.

He said that he had stopped a transaction initiated by the airline’s then CEO and Commercial Director. He claims that she overbilled the airline by US$232,000 in her previous position to pay Abbavater Group PR and advertising services.

Many MPs, including Hon. Martin Muzaale, a Buzaya County MP, asked Muleya to explain the losses suffered by Uganda Airlines. Muleya is currently being tried for disobeying orders from the Inspectorate of Gov.

Hon. Victor Nekesa, one the 10 representatives of the army in the House, asked Muleya to explain why they thought that Uganda Airlines would start with losses and then pick up.

“You cannot make profits if you have only opened nine routes out of 20 because your aircrafts are underutilised. If your aircrafts are flying five hours a day and they are meant to fly nine or 10 hours a day, it means you are not able to break even,” he added.

AUDIO: Cornwell Muleya

Muleya again used the A330 to fly to Dubai as an illustration. She said that there was a point to point traffic in which Ugandans fly to Dubai, and return by the exact same plane. Yet, the airline could form a partnership to ensure that it can fly all the people of Dubai into Africa.

“From the beginning we were discussing for a cooperation agreement with Emirates for them to feed as on a one-way interline. In this, they give us passengers from Pakistan and India so that they augment the point-to-point traffic – those structures have to be put in place,” he revealed.

Distributed by APO Group, on behalf of Parliament of Uganda