History
Uganda Airlines was founded as a subsidiary of the government-owned Ugandan Development Corporation (UDC) in May 1976 (1976-05) as a replacement of the services previously operated by East African Airways. It commenced operations in 1977, when Uganda Aviation Services (UAS), set up by British United Airways in 1965 but then a UDC subsidiary, was absorbed by Uganda Airlines, taking over the UAS route network.
In order to reduce noise according to European standards, the company had a single hushkitted aircraft that experienced a hull-loss accident in October 1988 (1988-10). Uganda Airlines soon resumed services with a leased aircraft, flying to the Middle East and Nairobi, but these flights were discontinued in late 1989. Furthermore, domestic routes had been reduced to those between Entebbe Airport and the airfields at Arua and Kasese.
Upon the creation of Alliance Air in late 1994—later known as SA Alliance—an entity jointly owned by the Tanzanian and Ugandan governments, Air Tanzania and Uganda Airlines, as well as by South African Airways (SAA), Tanzania and Uganda granted the rights of long-haul operations to the new airline. The agreement intended to feed Alliance Air's operations with both Air Tanzania and Uganda Airlines domestic and regional services. However, both regional carriers grew less than expected, and the deficit Uganda Airlines accumulated led the Ugandan Government to make a decision on whether to liquidate the airline or privatise it.
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