The international aviation consultancy Knighthood Global announced that it has concluded its three-month contract for repositioning Linhas Aéreas de Moçambique (LAM), but admitted that negotiations for an extension are underway, Lusa reported on Friday, August 15.
“Knighthood Global has concluded its three-month contract with LAM and delivered the final service report to management (…). The shareholders are working on an extension of this contract, and its completion is eagerly anticipated soon,” stated the international aviation consultancy.
In May, when hired by LAM’s new shareholders, the consultancy said it had three months to “stabilize and reposition” the state-owned airline, which is undergoing restructuring, explaining that it was “appointed by the Government to help revitalize” the carrier and “the country’s aviation sector in general.”
“The focus in the first three months will be to stabilize and reposition LAM,” the note read, mentioning that the consultancy would work with the new shareholders, the public companies Hidroeléctrica de Cahora Bassa (HCB), Portos e Caminhos-de-Ferro de Moçambique (CFM), and Empresa Moçambicana de Seguros (Emose), which “have a mandate to acquire appropriate aircraft and restore a fleet.”
The consultancy anticipated in that statement the “transformation” of LAM and aligning the company “around a single strategy” to resolve the airline’s problems. “Additionally, the right connectivity will support tourism in Mozambique and, primarily, support the development and growth of other key sectors, including mining, oil, and agriculture,” it added. In June, Knighthood Global even launched a tender to acquire, on behalf of the company, up to five Boeing 737-700 aircraft for LAM’s fleet, though the outcome of the process remains unknown.
LAM announced on August 12 the acquisition of its first aircraft in the last 18 years, a Bombardier Q400, highlighting this milestone as the first “tangible” proof of the new management tasked with restructuring the state-owned airline.
“This is the first aircraft we have acquired in the last 18 years. It is the first of many more that we will introduce and integrate into LAM’s fleet to make our airline what it should be, what it needs to be, and what it will be,” said Dane Kondic, chairman of the airline’s management committee, during a press conference in Maputo.
For several years, the state-owned airline has faced operational problems related to a reduced fleet and lack of investment, with some non-fatal incidents attributed by experts to poor aircraft maintenance. It is now undergoing a profound restructuring process. President Filipe Nyusi stated in April that there were “foxes and corrupt individuals” within LAM, with “conflicts of interest” that prevented the company’s restructuring in the first 100 days of governance.
The crisis led the airline to nearly suspend international flights this year, focusing on domestic connections, prompting the appointment of a new management team in May and new shareholders, including Hidroeléctrica de Cahora Bassa (HCB), Portos e Caminhos-de-Ferro de Moçambique (CFM), and Empresa Moçambicana de Seguros (Emose).
Meanwhile, on July 31, LAM also launched a tender for the short-term lease of five aircraft.
The Institute for the Management of State Holdings (Igepe) announced on May 13 the removal of LAM’s previous management and the appointment of a management committee led by Dane Kondic, 60, former CEO of Air Serbia and former chairman of the Portuguese airline euroAtlantic.
Currently, LAM serves an average of 915 passengers daily to domestic and regional destinations.
Source: Diário Económico
