Uganda Airlines to clear Shs29b fuel debt it owes Dubai firm

Uganda Airlines has pledged to clear any valid outstanding payment claims by the Dubai-based fuel company, worth $8 million (about Shs29 billion).
In a November 4 statement, the management of the national carrier acknowledged delayed payments to MixJet Flight Support, citing among other challenges, inflated invoices, which they said should first be harmonized.

“While the Airline appreciates the credit facilities offered by the supplier (MixJet), it finds it unacceptable that the supplier would drag it to the mainstream media to protest standard financial management practices. The Airline will reconcile every invoice and after satisfying itself, pay the supplier within a reasonable time,” Uganda Airlines statement reads in part.

According to the airline, the delay in payment is derived from Uganda's insistence on paying based on fuel-up lights and tech logs and not just the supplier’s invoices. 
“Over time, the Airline has received some inflated fuel invoices, high market prices erroneously billed and over-billed, and consistent threats to withdraw services without due warning to the detriment of our operations. The airline assures the public, especially its guests, that its operations will continue unabated.”

The airline has also clarified that the amount it owes the conractor is $8 million contrary to earlier media reports of $10m (about Shs37 billion).
“Since its inception, the airline has contracted MixJet to supply fuel. From July 2019 to July 2024, the airline has made payments to MixJet valued at USD 140M. The amount due to MixJet is approximately USD8 and not USD10m as claimed,” the national carrier clarified.

The Airline went on to promise “will reconcile every invoice and after satisfying itself, pay the supplier within a reasonable time.”
Earlier media reports had indicated that the Dubai-based MIXJET Flight Support Company had given Uganda Airlines a 48-hour ultimatum to pay at least $6 million of the total debt.
The Airlines had reportedly committed to first pay $2million as part of the ongoing efforts to address the outstanding debt, but the fuel dealer claimed even the said part payment wasn’t coming through and was considering legal action.

“Without an additional payment of $4 million, we will be unable to settle critical dues...,” a source at MixJet said before adding that the delay in payment is affecting their ability to maintain services for their other clients.
Uganda Airlines signed a contract for global fueling with MixJet, which then subcontracts other suppliers on the ground to deliver the service on its behalf.
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