The situation with Linhas Aéreas de Moçambique (LAM) remains ongoing, as emphasized by the Mozambican President during a press conference in Maputo, attended by various media including Lusa. “The process is still ongoing at LAM (…), it’s clear that we need, and this process is underway, to acquire [aircraft] for LAM and truly start building a robust company that can generate profit and dividends (…). I want to be clear that this is not a task that will end with LAM,” he stated.
For several years, LAM has faced operational challenges due to a limited fleet and lack of investment, with several non-fatal incidents attributed by experts to inadequate aircraft maintenance.
A revitalization program has been initiated, resulting in the removal of the airline’s previous management and the appointment of a management commission. Additionally, a forensic audit of LAM’s accounts over the past ten years has been launched to investigate alleged corruption within the company.
According to the Mozambican President, public institutions must remain strong and profitable, which requires combating corruption, deemed a significant hurdle to development: “It’s one of the barriers for development.”
“This effort will extend to many other public companies that are currently not generating revenue simply due to the same issues we find at LAM. So, we need to continue restructuring these companies so they can truly generate profits,” he asserted.
Expressing his comfort in addressing these issues and dismissing any pressure from groups, the President stated that this mission primarily focuses on fighting corruption.
“We will continue in this direction, not only for public companies but for the entire state, without much fuss, without witch hunts, but with ethics, responsibility, competence, and we need integrity in our public companies and integrity in our state,” he added.
On April 28, the Mozambican President had previously indicated that “foxes and corrupt individuals” within LAM, with “conflicts of interest,” have hindered the restructuring of the company during the first 100 days of his administration.
Meanwhile, LAM is in the market to procure up to five Boeing 737-700 aircraft, a process led by the international consultancy Knighthood Global, responsible for restructuring the state-owned Mozambican airline.
An announcement this month by Knighthood Global, which was consulted by Lusa, stated that the Abu Dhabi-based consultancy has been mandated by LAM shareholders to receive proposals until June 20 for the supply of “up to five sister Boeing 737-700 aircraft,” seating 120 to 140 passengers.
“Knighthood Global is conducting this competitive process, with limited deadlines, to secure aircraft that meet the operational, commercial, and strategic requirements of LAM, whether through direct purchase, financial leasing, or operational leasing,” the announcement read.
In May, Knighthood Global announced it has three months to “stabilize and reposition” LAM, explaining that it was “appointed by the Government of Mozambique to assist in revitalizing” the airline and “the overall aviation sector in the country.”
“The focus in the first three months will be to stabilize and reposition LAM,” according to a statement reported on May 19 by Lusa, in which the consultancy noted it will work with the new shareholders, which include public companies such as Hidroelétrica de Cahora Bassa (HCB), Portos e Caminhos de Ferro de Moçambique (CFM), and Empresa Moçambicana de Seguros (Emose), who “have a mandate to acquire the appropriate aircraft and re-establish a fleet.”
