East Africa’s carriers flutter, weighed down by huge debts, losses and bad PR

The region’s national carriers have experienced a turbulent week. Hope seemed to dim further for Kenya Airways, which announced heavy losses—again —just as Air Tanzania grappled with theseizure of one of its aircraft in South Africa over a 37-year-old debt.

For Uganda, whose relaunched flag carrier Uganda Airlines started commercial operations, the two events amplify the multiple perils it faces as it rejoins a business it quit amid mounting debt nearly 20 years ago.

Ethiopian Airlines, the only carrier in the region that is profitable, is also facing bad PR over the Flight ET302 crash in March that killed all 157 passengers and crew on board.

More petitioners have joined a $1 billion compensation suit filed at a US federal court by top American law firms against aeroplane manufacturer Boeing following the crash.

KQ’s half-year loss widened by a staggering 112 per cent to $81.7 million, from $37.2 million posted for the same period in 2018.