“This is the first aircraft we have acquired in the last 18 years. And it is the first of many that we will introduce and integrate into LAM’s fleet to ensure our airline becomes what it should be, what it needs to be, and what it will be,” stated Dane Kondic, head of the company’s management committee, during a press conference in Maputo.
The aircraft, a Bombardier Q400 with a capacity to transport up to 74 passengers, has been in the Ethiopian capital for nearly four months, undergoing maintenance checks, and is expected to arrive in Maputo on Thursday, Kondic announced.
The transaction was finalized on Monday, and the aircraft’s ownership title is now in LAM’s possession, according to the executive.
“This is the first tangible proof of what the shareholders’ and government’s vision has realized and what this management team has tirelessly worked on to ensure the rebirth of our national carrier,” he explained.
For Dane Kondic, a “strong and healthy” LAM also signifies that people are employed, spend money, and have food on the table. Hence, the airline’s strength is also a “strong driver” of the country’s economic development.
“I feel very proud, especially considering the difficult circumstances we had here with the airline, not only over the past three or four months but over the past three or four years,” he said, adding that this is probably the best news for LAM in the last five years.
The Mozambican airline has been facing operational issues for several years due to a reduced fleet and lack of investment, with several non-fatal incidents linked by experts to poor aircraft maintenance. The company is currently undergoing a deep restructuring process.
Mozambique’s President, Daniel Chapo, stated on April 28 that there are “foxes and corrupt individuals” within LAM, with “conflicts of interest” that hindered the company’s restructuring in the first 100 days of governance.
The crisis led the airline to almost cease international flights this year, focusing on internal connections, and resulted in a new administration in May along with shareholders like Cahora Bassa Hydroelectric (HCB), Portos e Caminhos de Ferro de Moçambique (CFM), and Empresa Moçambicana de Seguros (Emose).
To mitigate the recurring issues with flight cancellations, LAM plans to purchase up to five Boeing 737-700 aircraft to improve operational capacity. This process is led by Knighthood Global, a consultant hired by the new shareholders to advise on the company’s restructuring.
Meanwhile, LAM also launched a tender on July 31 for the short-term lease of five aircraft.
The Mozambican State Ownership Management Institute (Igepe) announced on May 13 the removal of LAM’s administration and the appointment of a management committee led by Dane Kondic, aged 60, former CEO of Air Serbia and former chairman of Portugal’s euroAtlantic.
Currently, LAM has an average of 915 daily passengers for national and regional destinations.
