Mozambique Airlines (LAM) will be restructured under the Civil Aviation Master Plan (PDAC), which places the carrier in a central but fragile position, with the aim of strengthening its competitiveness and ensuring the sustainability of the state-owned airline.
The PDAC 2026–45, approved this month by the Council of Ministers and cited by Lusa, identifies LAM as a key player in the aviation system, but one affected by structural weaknesses that require urgent intervention.
According to the diagnosis, the airline faces an ageing fleet, insufficient profitability, and increasing competitive pressure from regional and international carriers. “Without these adjustments, LAM will remain vulnerable to growing competition from regional and international airlines,” the document warns.
The plan includes LAM’s recovery as one of nine strategic pillars of aviation policy over the next 20 years, foreseeing the company’s restructuring, fleet renewal and expansion, strengthening of internal governance, expansion of its route network, and the establishment of international partnerships.
The sectoral assessment also highlights strong dependence on the domestic market, with more than 80% of activity concentrated on internal routes, while international presence remains limited. This reduces foreign currency revenue and restricts income diversification. Despite these weaknesses, LAM still plays a dominant role in national air transport, accounting for around 60% of passenger traffic at Maputo and Beira International Airports, and approximately 99% of passenger movements in Nacala, while remaining the main operator of domestic routes and a relevant player on regional connections.
“Without these adjustments, LAM will remain vulnerable to growing competition from regional and international airlines.”, Civil Aviation Master Plan
To finance modernization, the PDAC proposes the international “Sale and Leaseback” mechanism, which involves selling aircraft and then leasing them back, allowing the airline to free up resources for fleet renewal. The plan also recommends the implementation of the Cape Town Convention and the mobilization of Public-Private Partnerships (PPPs).
The document further highlights financial weaknesses in the sector, noting that Airports of Mozambique (ADM) has negative equity of around 1.2 billion meticais (€16.9 million) and debt exceeding 24 billion meticais (€322.7 million), including LAM’s debt to ADM of 4.9 billion meticais (€66.8 million).
The plan also warns of technological risks, pointing to “serious cybersecurity vulnerabilities” at LAM and Maputo International Airport, in a context where national operators still lack sufficiently robust systems for continuous cyber risk monitoring.
Among the main constraints to civil aviation development in Mozambique, the PDAC highlights LAM’s challenges and “low competitiveness,” as well as high tariffs, insufficient modern infrastructure, shortage of qualified human resources, and financial limitations across sector institutions.
Source: Diário Económico
