Uganda Airlines Wet-Leases Ethiopian Airline’s Boeing 787-8

Uganda Airlines has arranged a short-term solution to resume its suspended long-distance flights with the arrival of a Boeing 787-8 Dreamliner, registered ET-ASI, from Ethiopian Airlines. 

The aircraft, scheduled to arrive this Thursday under an ACMI (Aircraft, Crew, Maintenance, and Insurance) agreement, will be operated by a 43-member Ethiopian Airlines crew, expected to arrive in Uganda today. 

According to an internal communication to Uganda Airlines management, the aircraft will position to Entebbe under flight number UR601 using Uganda Airlines’ call sign, ‘CRESTED’. 

This arrangement is intended to restart flights to London Gatwick following the grounding of Uganda Airlines’ two Airbus A380s, the only aircraft in its fleet for long-haul international routes. 

On February 20, Uganda Airlines announced that its two long-haul aircraft were temporarily out of service due to unscheduled maintenance, disrupting operations on the London Gatwick, Dubai, and Mumbai routes.

If an airline fails to fly slots at a busy airport like London Gatwick, they risk losing the valuable slots under the use—it—or—lose—it rule. 

In this case, Uganda Airlines risked penalties, including the forced cancellation of future schedules and the potential assignment of the slots to competitors. 

The Aircraft, Crew, Maintenance, and Insurance (ACMI) deal is a form of wet-lease, in which Ethiopian Airlines provides both the aircraft and supporting operational services for Uganda Airlines’ routes.

A source with knowledge of the aviation industry told URN that Uganda Airlines would have chosen a dry-lease arrangement or leasing only aircraft from Ethiopian Airlines. The option would have been cheaper than the wet-lease arrangement.   

He noted that the option was not feasible since the Ugandan pilots and crew may not be qualified to fly and operate the Boeing 787-8 Dreamliner. Because the 787-8 is a technologically advanced large commercial jet. 

Uganda Airlines will have to pay the pilots and crew at the rate of Ethiopian Airlines. It will foot the maintenance of the craft to ensure that it remains airworthy.   

ET-ASI, a Boeing 787-8 Dreamliner, has been part of Ethiopian Airlines’ long-range fleet, serving various international routes. 

The 787-8 features extensive composite construction for improved fuel efficiency and is typically configured with two classes, including “Cloud Nine” business class. 

At the height of operational and management challenges, President Yoweri Museveni ordered the dismissal of Uganda Airlines CEO Jenifer Bamuturaki and appointed Girma Wake, former CEO and chairman of Ethiopian Airlines, as acting CEO and company advisor, effective February 16. 

The airline committed to re-accommodating affected passengers, including rebooking on alternative carriers where available and adjusting schedules to accommodate more travelers.