Eagle Air

Increasing tourism, economic growth and oil make Uganda an attractive destination

It has been said that if Uganda’s infrastructure were to be improved, its resources could feed the entire African continent. Instead, the nation is one of the poorest and least developed countries in the world. However the potential for further development is undeniably present, and this is what has drawn large international airlines to enter the market. British Airways, Emirates, EgyptAir, KLM and South African Airways have been in the market for years, but it is the entry of Middle Eastern carriers such as Gulf Air and Qatar Airways in Oct-2011 through Dec-2011 that is boosting the nation’s aviation standing.

The country’s main international airport in Entebbe expects to break 1.5 million passengers in 2011 due to these services and is undergoing extensive improvement work to attract more carriers. The Ugandan Government approved the right for foreign investors to develop the airport, which will likely see a consortium of Middle Eastern developers take interest. The country’s designated national carrier, Air Uganda, is improving its offering as well, and is on course to launch domestic and more international services under its turnaround business plan.

Republic reports double-digit 2Q loss with 631% swing

Once the analysts’ darling and a top performer in the regional airline industry, Republic’s fortunes have fallen dramatically since its acquisition of Frontier and Midwest and that is reflected in its second quarter earnings when it posted a USD14.9 million net loss, a 631.1% swing from the USD2.6 million profit earned in the previous corresponding quarter. It joins just American in posting losses for the quarter. The results only served to exacerbate the USD55 million lost in the first quarter.