Uganda Airlines has issued a statement clarifying recent reports of legal action taken by its fuel supplier, MIXJET, over alleged non-payment of bills.
The statement, released on November 4, aims to correct what the airline described as misinformation circulating in media outlets, which claimed that Uganda Airlines owed MIXJET up to $10 million in unpaid invoices.
In its response, Uganda Airlines disclosed that since signing a contract with MIXJET in 2019, it has made payments totaling approximately $140 million to the supplier.
However, the airline clarified that the outstanding balance currently stands at around $8 million, not the USD 10 million reported.
The airline acknowledged delays in settling payments but attributed these delays to a rigorous verification process aimed at ensuring transparency and accountability.
According to the statement, Uganda Airlines has been meticulously cross-checking each invoice against fuel uplifts and technical logs, rather than relying solely on supplier invoices. The airline noted instances of “inflated fuel prices, erroneously billed and over-invoiced amounts,” which it claims have complicated and prolonged the payment process.
The statement also pointed to frequent threats by MIXJET to suspend fuel supplies without prior warning, an action that Uganda Airlines argues has disrupted its operations.
“Over time, the airline has received some inflated fuel invoices, high market prices, erroneously billed and over-invoiced amounts, and consistent threats to withdraw services without due warning to the detriment of our operations,” the airline stated.
Uganda Airlines expressed disappointment that MIXJET chose to bring the matter into the public sphere, which it described as an unnecessary escalation.
“While the airline appreciates the credit facilities offered by the supplier, it finds it unacceptable that the supplier would drag it to mainstream media to protest standard financial management practices,” the statement added.
The airline assured the public, particularly its passengers, that this payment issue will not affect its regular operations. Uganda Airlines emphasized its commitment to continue providing uninterrupted services, noting that it intends to reconcile each invoice and settle the outstanding balance within a reasonable timeframe once verification is complete.
This response from Uganda Airlines reflects a growing emphasis on accountability in the face of rising operational costs and disputes with suppliers. While the airline remains committed to its due diligence process, the situation highlights the challenges faced by regional airlines in managing fuel expenses, one of the most significant operational costs in the aviation industry.
Uganda Airlines, which has been expanding its flight routes recently, reassured travelers that its services would continue as scheduled, putting any concerns about potential disruptions to rest.
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