Mozambique Airlines (LAM) has hired Knighthood Global, an international aviation consultancy based in Abu Dhabi, to lead the next phase of its financial and operational restructuring. The company, headed by James Hogan, former president of Etihad Airways, has been given 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 in the first three months will be on stabilizing and repositioning LAM,” the statement reads, emphasizing that the consultancy will work closely with the new shareholders — Hidroeléctrica de Cahora Bassa (HCB), Ports and Railways of Mozambique (CFM), and the Mozambican Insurance Company (Emose) — entities mandated to acquire new aircraft and rebuild the fleet. Knighthood’s mission includes restructuring LAM’s financial base, reducing its debt level, strengthening its investment profile, modernizing the fleet, implementing IT systems, and reviewing the human resources management model to ensure greater efficiency and improved service quality.
According to the airline, the intervention addresses longstanding structural challenges, such as an aging 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 emphasized 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 workers and all relevant social actors will be decisive for the restructuring to yield the desired results.” The hiring of Knighthood Global follows major changes in LAM’s structure that began in early May, with the dismissal of the previous board. The Institute for the Management of State Holdings (IGEPE) announced the termination of the mandates 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 — a manager with experience at Air Serbia and Portugal’s euroAtlantic Airways — tasked with ensuring operational continuity and leading the company’s transformation plan.
As part of the recovery strategy, the government also announced a forensic audit of LAM’s financial records over the past ten years, aiming to determine responsibilities and clarify the company’s financial position. LAM currently employs around 800 people.
The severity of the airline’s internal problems was publicly acknowledged by the President of the Republic, Daniel Chapo, who on April 28 stated that the restructuring process had been hindered by entrenched interests and mismanagement practices.
“We discovered that at LAM, we had handed over the henhouse to foxes or put cats in charge of mice,” said the head of state, denouncing “conflicts of interest” and acts of corruption that, according to him, prevented the fulfillment of the goals set for the first 100 days of his mandate.
Among those goals was the acquisition of three aircraft to strengthen the national carrier’s fleet — an objective still unachieved, but now expected to be revisited under Knighthood Global’s strategic guidance.
The government expects the consultancy not only to stabilize the airline but also to 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
