The owners of East African Airlines have sold out their interest in the airline to new shareholders.
A communication to staff said Africa Direct Uganda Limited and Frederick Ochieng-Obbo are the new owners of the airline that has been struggling since it started operations in 2002.
The airline was owned by FIN Investments Limited, which had a 50% stake. Benedict Mutyaba, who has been managing director, had a 40% stake, while Patrick Kabunakaki had 10%.
“The board of the airline has relinquished their positions with immediate effect and a new board will be appointed by the new shareholders. Mutyaba will shortly be handing over to Frederick Ochieng-Obbo who takes over as interim managing director and chief executive officer,†the communiqué said.
It also said the new shareholders had completed an extensive due diligence of the state of the airline.
The communiqué said the airline has financial and operational problems.
“The new board intends to address three urgent tasks of restructuring the operations to offer full service on its current routes to Nairobi, Johannesburg, Harare and Dubai,†it said.
“It also intends to engage the creditors, suppliers and operational partners so as to restructure the finances of the airline and attract additional investment to allow expansion as well as position the airline to continue playing a key role in the aviation development of Uganda,†the communiqué said.
By Tanah Hadijah
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