The increase “results from improvements in flight consistency and a slight increase in available seats,” according to information released today by the company, referring to the immediate results of the last four months within the scope of the restructuring of the Mozambican company.
The document indicates that the average sales from the beginning of the year until May remained at approximately nine million dollars (7.6 million euros), rising slightly in the following month to reach just over 11 million dollars (9.3 million euros) in August, totaling just over 40 million dollars (34.6 million euros) in the last four months.
The same document states that these sales result from the acquisition of a new aircraft, better control over ticket issuance and generated revenues, control of credit sales, stricter debt collection, and centralization of the purchasing process of goods and services.
There has also been “a strengthening of the role of internal auditing to improve internal controls, amortization, and payment plans to settle debts with critical aeronautical equipment suppliers,” including paying off debt to the international organization IATA.
In a press conference today in Maputo, the chairman of the board of directors of Mozambique Ports and Railways (CFM), which is part of the new shareholder structure, stated that LAM is achieving financial results that allow it to cover its operations, including settling debts with suppliers.
“Today, many entities are interested in leasing LAM aircraft. In the past, it was impossible; just hearing about LAM made people close the door and turn their backs, but today they realize we can pay,” said Agostinho Langa.
LAM has moved forward with the centralization of the company’s integrated management system, replacing the previous 11 systems, which allowed resource rationalization, especially in purchasing goods and services, as shared today.
The company has faced operational problems for several years related to a reduced fleet and lack of investments, with some non-fatal incidents attributed by experts to inadequate aircraft maintenance, currently undergoing a significant restructuring process.
In May, the appointment of a non-executive board of directors was approved, composed of representatives from the three state companies that became LAM shareholders this year: Cahora Bassa Hydroelectric (HCB), Mozambique Ports and Railways (CFM), and Mozambican Insurance Company (Emose).
To minimize recurring problems with flight cancellations, LAM plans to purchase up to five Boeing 737-700 aircraft, in a process led by Knighthood Global, the consultancy hired by the new shareholders to advise on the company’s restructuring.
In the same statements to journalists, the president of CFM announced that these five new aircraft would be acquired by the first half of December, with feasibility studies underway for the opening of new routes.
“At no point did we promise to acquire new planes (…) if we wanted a new Boeing aircraft, we would have to wait about three years to get it, but we want planes for yesterday,” explained Agostinho Langa.
In the same statements, Langa warned that the restructuring of LAM “requires some time and some patience, not only from the population but also from the Government itself.”
“We have appealed that this will take some time and will not be at the speed that was expected, because there are some internal and external interests pulling in the opposite direction, trying to delay this process a bit,” he said.
