Air Uganda cancels RwandaAir Code Share

Air Uganda has terminated its Code Share agreement with RwandAir, a senior official at RwandAir has told The New Times. RwandAir’s Chief Executive Officer, John Mirenge confirmed the development in a phone interview asserting that Air Uganda officials cancelled the agreement.The New Times could not establish what led Air Uganda to terminate the share agreement, neither would RwandAir’s CEO. “I don’t understand why...they served us with a letter cancelling the agreement,” Mirenge noted. He disclosed that the termination of the agreement that was signed in June 2010 is effective within 30 days. “This will not affect our revenues in anyway. We have already introduced another flight on the route, so it will not affect our passenger numbers or our revenues,” Mirenge insisted. He added that RwandAir currently has a morning flight to Entebbe, via Bujumbura, and a direct evening flight. At the signing of the code share in Kigali, Air Uganda’s CEO, Hugh Fraser, had mentioned that both airlines would harmonise ticket prices which would make them the dominant players in the region to compete against the largely dominant Kenya Airways.Both national carriers announced the code share agreement on the highly lucrative Entebbe-Kigali route in June 2010. The agreement was signed to enable both airlines and travel agents to sell tickets on each other’s flights to offer customers the same combinable fares on the same tickets, making it cheaper and simpler for their customers to use either airline.With the code sharing partnership, passengers enjoyed a day return from both Uganda and Rwanda bypassing Nairobi, saving time by combining the nonstop flights of both airlines. Airline business is increasing in Rwanda, as more airlines add Kigali into their menu of destinations. The most recent is South African Airways which will operate three weekly flights, while Turkish Airlines and Qatar Airways are both set to launch operations this year. RwandAir has on its fleet two Boeing 737-800s sky-interior, a Dash8, two Boeing 737-500, and flies to 12 destinations. Early last month, the national airliner sold its two 50 seater CRJ200 with intention of replacing them with brand new Regional Jets. Regional Jets are described as a range of short to medium-haul turbofan powered aircraft, normally with capacity to carry between 70 and 100 passengers. On the other hand, Air Uganda is a member of the Aga Khan Fund for Economic Development (AKFED) and has been in operation since November 2007. They serve seven destinations, including Rwanda with two CRJ-200s and two MD-87s.

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Air Uganda cancels RwandaAir Code Share