NAIROBI, KENYA – DAS Air Cargo, a Ugandan carrier with operations across Europe for over 20 years, has been forced to close its operations after failing to recover from a ban by the European Union (EU), imposed on its aircraft, last year.
The airline has also been forced into administration and a UK management firm, Menzies Corporate Restructuring (MRC), appointed its joint administrators.
“We are out of business, the offices have closed and the boss (Capt. Joe Roy ) is out in the DR Congo , pursuing some other private business,” a DAS official told East African Business Week on condition of anonymity, last week.
“We have been spending high for long and it’s been quiet a challenge,” the source added.
The airline tried to return to business eight months ago after being struck off the list of airlines that were last year banned from operating in EU skies but appears to have been overwhelmed.
This followed a suit by DAS Air, challenging the sudden ban for operating a fleet of DC-10 aircraft within the EU. DAS Air won the suit.
High fuel costs, administrative spending and costs of the suit to fight the ban have since been some of the factors blamed for the airline’s downfall.
The source said the airlines customer base begun to drop while its financial performance has since declined drastically.
One of the administrators, Mr. Andrew Duncan, told AirCargo News, a UK based online publication that DAS officials would have the opportunity “to come up with a restructuring proposal or to sell the business as a going concern, thereby saving jobs and minimising disruption to its customers.”
“DAS struggled on after the ban, but it was unfortunately that which brought it to the situation it now finds itself in,” he added.
Its fleet of two has since been grounded at London’s Gatwick Airport but other sources said they had been moved to Manston, Kent International Airport.
Last year, Das Air officials told this reporter they suffered a US$2.5million loss every week due as a result of the ban.
Prior to its ban, DAS Air was doing brisk business, mainly transporting horticultural products (fresh fruits and flowers) from East Africa to Europe.
About 90 airlines, mainly from Africa, Eastern Europe and Asia were blacklisted from EU skies last year following a series of crashes worldwide, blamed on poor maintenance and reluctance to observe strict safety regulations.
However, many of these have been withdrawn from the list after they ceased operations, mainly after they failed to secure renewal of respective operating licenses.
New companies created mainly from the same countries facing the ban were added to the list for a total ban.
At its peak in 2006, the company enjoyed annual revenues in excess of US$200 million. In 2003, the airline won two prestigious awards, the Best Cargo Airline to Africa and Best All Freighter Carrier, 2003.
