Mozambique Airlines (LAM) has hired Knighthood Global, an international aviation consultancy based in Abu Dhabi, to lead the new phase of its financial and operational restructuring. The firm, headed by James Hogan, former CEO of Etihad Airways, will have a three-month deadline to stabilize and reposition the Mozambican airline, according to a statement from the consultancy itself.
Knighthood Global was appointed by the Government of Mozambique with the aim of revitalizing not only LAM but also contributing to the strategic repositioning of the country’s aviation sector.
“The focus during the first three months will be to stabilize and reposition LAM,” the
company’s statement reads, emphasizing that it will work in coordination with the
new shareholders — Hidroeléctrica de Cahora Bassa (HCB), Ports and Railways of
Mozambique (CFM), and Mozambican Insurance Company (Emose) — entities with
a mandate to acquire new aircraft and rebuild the fleet.
The consultancy will be tasked with restructuring LAM’s financial base, reducing its
debt levels, strengthening its investment profile, modernizing the fleet, implementing information technology systems, and reviewing the human resources management model in order to ensure greater efficiency and improved service quality.
According to the airline, the intervention addresses long-standing structural
challenges, such as the obsolescence of part of the fleet, recurring financial
difficulties, and increased competition in the aviation sector. Knighthood will also be
responsible for aligning the company with international industry standards and
promoting a transparent, results-driven management model.
LAM emphasizes that the active involvement of employees and other key
stakeholders will be crucial to the success of the process: “The involvement and
collaboration of all LAM employees and all relevant social actors will be essential for
the restructuring to deliver the desired results.”
The hiring of Knighthood Global follows major changes in LAM’s organizational
structure, which began in early May with the removal of the previous management
team. The Institute for the Management of State Holdings (IGEPE) announced the
dismissal of then-president Marcelino Gildo Alberto and board members Altino
Xavier Mavile and Bruno Miranda.
An executive management committee was also established, led by Dane Kondic, an
executive with prior experience at Air Serbia and Portugal’s euroAtlantic Airways. He
has been tasked with ensuring continuity of operations and leading the airline’s
transformation plan.
As part of the recovery plan, the government also announced a forensic audit of
LAM’s financial records for the past ten years, aimed at identifying accountability and clarifying the company’s financial situation. LAM currently employs around 800
workers.
The seriousness of the internal issues was publicly acknowledged by the President
of the Republic, Daniel Chapo, who on April 28 stated that the airline’s restructuring
had been hindered by entrenched interests and poor management practices.
“We discovered that within LAM, we handed the henhouse over to foxes—or mice to be guarded by cats,” said the Head of State, denouncing “conflicts of interest” and acts of corruption which, according to him, prevented the achievement of key goals set for the first 100 days of his term.
Among those goals was the acquisition of three aircraft to strengthen the national
carrier’s fleet—an objective that remains unfulfilled but is expected to be revived
under the strategic advisory of Knighthood Global.
The government’s expectation is that the consultancy will not only stabilize the
company but also reposition LAM as a competitive air operator, with a positive
impact on tourism, mobility, and strategic sectors such as mineral resources, energy,
and agriculture.
Source: Diário Económico
