Opinion: Why Uganda should stick to the plane that "No other airline wants"



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By Kyetume Kasanga

The uprising of Uganda Airlines has raised the stakes for 24 foreign airlines our national sky. Kenya Airways and its subsidiary, JamboJet, enjoy a lavish presence thanks to the absence of a national airline and are working to maintain their dominance on the region's roads. Rwanda is investing heavily in a new airport and is improving old facilities as well as expanding and improving the fleet. Tanzania has purchased more American Boeing and Canadian Bombers for its fleet. Air Burundi has undergone a restructuring process, while South Sudan is considering national development and international air connectivity.

The media accuses Uganda of becoming the only customer of the Airbus A330-800Neo (New Engine Option) aircraft application for airlines around the world. This is after Uganda has signed a memorandum of understanding with Airbus SE Corporation, registered in the Netherlands, for the purchase of two A330-800Neo during the recent Farnborough Air Show. UK.

six aircraft of this type in March of this year when the carrier abandoned them for 20 Boeing 787-9. It also lost other orders from TransAsia Airlines for four people when the Taiwanese liner collapsed in November 2016. Airbus therefore has no other orders than that of l & # 39; Uganda. At the same time, the Airbus A330-900Neo series has received more than 250 orders from 15 airlines in the United States, Malaysia, Ireland, Portugal, Indonesia, Israel, New Caledonia, Iran, Iceland, Senegal and Singapore. Yet, both variants are being developed together since 2014.

The natural question is this: why should Uganda opt for the plane that "nobody wants" rather than the # 39; A330-900Neo "preferred"? By starting to render a service, there is really no conventional or correct way. It's what and how we serve / sell that makes the difference. All successful business ventures have one thing in common: they start as a good idea, with little funding and a lot of dedication, determination, resilience, caution and humility.

Before his death in 2011, entrepreneur and American entrepreneur mogul Steve Jobs of Apple's fame, said when you step out of the mainstream, you are taking a risk with big rewards expected. Uganda does not have to follow what others are doing to do the "right" thing. By buying the A330-800Neo, she took a deserved risk

Aeronautical experts believe in the 90% rule: some people buy an airplane that fits their intended mission, not their true mission. They only find out too late that they have "overbought" an aircraft that will be sub-registered on new routes. As a rule, it is prudent to shop for a plane that meets your needs 90% of the time. The savings you make by buying the right plane will be used for other things. That's exactly what Uganda did when booking the two A330-800Neos built in Europe

What's the A330 -800Neo?

The Airbus A330-800Neo is one of two versions of the A330Neo (the other is the A330-900Neo), which were launched simultaneously as an improvement on the successful Airbus A330 series. Neo is the abbreviation for New Engine Option. The A330-800Neo is slightly smaller than the A330-900Neo, carrying around 30 fewer passengers. It typically accommodates 257 passengers in three classes of service, while providing a capacity of 406 passengers in a high-density configuration.

It is also more fuel efficient and less expensive than its sister, according to the Future Aircraft Fuel Efficiencies Study sponsored by the UK Department of Transportation. The A330-800Neo is a stylish and beautiful aircraft. With better operational versatility, comfortable cabin comfort and low capital costs, it is one of the most efficient airliners on the market. It also boasts a longer range (distance than it can cover) up to 7,500 nautical miles (13,890 km) non-stop and excellent for long trips. By targeting 15 routes, Uganda intends to use it for such missions.

With the Washington-based Leeham Company analysis monitoring key developments in the aerospace industry, there is no reason to believe that the A330-800Neo will not succeed . As a result, United Airlines, the world's third largest airline, after American Airlines and Delta Airlines, considers the type that Uganda has reserved among options to replace its aging fleet of Boeing 757s and 767s in the short term, according to its vice -President. -President of Finance, Supply and Treasurer, Gerry Laderman. The development was also confirmed by the Vice President of Strategy and Marketing of Airbus, Kiran Rao in press quotes. The Chicago-based carrier has 77,757-200 and 757-300, and 51,767-300ERs (Extended Range). It is well known that the A330-800Neo is cheaper in unit cost than the A330-900Neo of at least 40 million US dollars (149 billion shillings).

So, why is there no other airline in

The plane is facing a dog-dog competition in the United States. # 39; A330-900Neo because of its disadvantage of 30 places. Established airlines go for her sister because they can always reach flying bookings and spread out unit costs per seat. Both variants have the same maximum take-off weight (the maximum weight at which the pilot is allowed to attempt to take off) and, therefore, the same engines. The same goes for the costs of navigation, landing and handling. In aviation, the lack of immediate acceptance of the industry can seriously damage a brand of aircraft, which seems to be the case of the A330-800Neo. When no airline buys a particular plane, others will not touch it, no matter how effective it is. That's the explanation that was given by Hawaiian Airlines when they dropped A330-800 orders in March, after realizing that they were the only customers.

The Option of Uganda

There are key factors that breathe new life into the A330-800Neo. The first is the risk, both at the micro and macro levels. The A330-800Neo is a low risk option; a lower travel cost involves less risk when adding a new destination or a new route, as this minimizes capital expenditures. At the macro level, smaller planes are cheaper and generally require less financing. The two A330-800Neos cost 586 million Ugandan dollars (2,192 billion UGX) to Uganda, while the A330-900Neos would drain the taxpayer of 666 US $ (2,491 billion US dollars). 39; UGX). In doing so, the country saves 80 million US dollars (299 billion UGX). The A330-800Neo therefore becomes a natural choice for beginners.

For now, Uganda can not compete with established airlines such as Delta Air or the Malaysian AirAsia X that benefit from overbooked routes and prodigious economies of scale. . Delta operates more than 5,400 daily flights to 314 destinations in 54 countries, while AirAsia X operates 32 aircraft and has placed an order for 34 additional aircraft, the total number of aircraft ordered by the airline increasing to 100. It is inaccurate Thus, traditional media and new media have condemned Uganda Airlines to choose a cheaper but quality product hated by entities established for their own reasons. Want well that Uganda is a more liberal idea.

The author is a senior information officer at the Ministry of ICT and National Guidance.

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