President Yoweri Museveni has said that his Government is to establish a National carrier to replace the defunct Uganda Airline.
The move is one way of expanding the country’s revenue base owing to the fact that more Ugandans are flying today than they did in the past.
While officiating at the Independence Day celebrations yesterday, president Museveni said his government intentionally allowed Uganda Airlines to collapse because it was making losses.
He added that with an estimated US$420 million spent by Ugandans on air travel annually, the government has decided to stop the outflow of this money and to end travel inconveniences to Ugandans.
Uganda Airlines, which was established in May 1976 under the Idi Amin government, was in 2001 liquidated over heavy debts that stood at a tune of more than $6m.
The President says the Minister of Works and Transport, Monica Azuba Ntege has been directed to work on the modalities.