Mozambique Airlines (LAM) has ceased to be a technically insolvent company two months after the international commission, led by South African consultancy firm Fly Modern Ark (FMA), came in. Hired to operate for a period of 12 to 18 months, Fly Modern Ark began operating in the country on 18 April this year.
The information was revealed this Friday (30), by the Minister of Transport and Communications, in Maputo, during the inaugural ceremony of the new regional air route, which links Maputo to Lusaka, with a stopover in Harare, Zimbabwe.
According to Magala, after the entry of the FMA, the airline has recorded significant gains, among which are the reduction of fares by over 30 percent; the increase of the LAM fleet with two more CRJ 900 aircraft, with capacity for 89 passengers each. The first aircraft started operating in June and the second will start operating in July; the improvement of operational efficiency that translates into the reduction of delayed or cancelled flights, the consolidation of punctuality, among other gains for the passenger.
The governor also noted, as gains for LAM, the opening of new regional destinations, containment of spending, considerable increase in revenue and consequent improvement of the company’s financial situation.
“Miraculously, the company that was considered technically insolvent three months ago is now technically solvent,” said Magala.
In May, the new LAM management commission announced that the company was no longer insolvent after collecting US$47.3 million in state and private debts since April, but that it was still at risk of collapse.
On Friday, the minister said he was aware that the “challenges for the restructuring and profitability of LAM are enormous, but the gains achieved, in this short space of time, encourage us to believe that the reforms underway were not only necessary, but also effective.
As for the start of flights to Lusaka, Mateus Magala, pointed out that the new route aims to strengthen ties between neighbouring countries and promotion of regional connectivity.
“In this region, the company currently provides air connections between Maputo and Johannesburg, as well as Maputo and Harare, in addition to Pemba and Dar es Salaam.
The addition of flights aims to increase travel options for passengers, eliminating the need for prolonged stopovers or indirect routes between the countries,” stressed the source, adding that, the initiative will promote tourism, trade and cooperation between the countries.
The company believes that the new route will bring mutual benefits for Mozambique, Zambia and Zimbabwe, while providing another option for passengers in the region.
