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Friday, December 1, 2006 - Web posted at 8:07:38 GMT

New Ugandan airline makes inaugural flight

KATY POWNALL

KAMPALA - A new passenger airline was launched in Uganda yesterday to compete directly with Kenya Airways, one of Africa's most profitable airlines.

Victoria International Airlines made its maiden voyage from Entebbe International Airport in Uganda to Nairobi, Kenya.

It will fly to Nairobi, Johannesburg, South Africa and Juba in southern Sudan with 21 scheduled flights each week, said officials.

The airline is widely tipped by industry experts to be Uganda's new national carrier.

Its fleet will initially comprise two Boeing 737-200s, leased from South African aircraft leasing firm Avstar.

Uganda's last national carrier, Uganda Airlines, was liquidated in 1999 after years of failing to turn a profit.

"We recognise that the history of Ugandan airlines is not great," said Declan Peppard, commercial director of Victoria International Airlines.

"None have ever made it."

Peppard said VIA will offer pre-tax ticket prices of up to 40 per cent lower than their competitors.

"We feel the timing is right to launch a new airline.

Lots of people are fed up with the existing operators - they are overstretched and that has led to increased delays and lower levels of service."

Twenty per cent of the company's shares are owned by the Ugandan government with the remaining 80 per cent held by private investors from Switzerland and South Africa.

The airline cost US$1,2 million to set up and has cash reserves of around US$4,2 million said Peppard.

Kenya Airways has seen profits leap 24 per cent in the last year to US$68 million, the airline said in recent accounts.

It currently has a 21-plane fleet.

Nampa-Reuters

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