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LAM: Company Spends $4M on Non-Certified Freighter and Returns Aircraft to Indonesia

LAM: Company Spends $4M on Non-Certified Freighter and Returns Aircraft to Indonesia

Mozambique Airlines (LAM) has returned a Boeing 737-300 freighter to Indonesia after failing to certify it for operations in Mozambican territory. The process, which resulted in a total cost of 4 million dollars (255 million meticals), was detailed by the company in a statement issued on Tuesday (21), according to Integrity Magazine.

According to LAM, the aircraft arrived in Mozambique on 31 December 2023, but remained in the hangars of Maputo International Airport until 18 January 2025, when it returned to Jakarta, Indonesia. The freighter, which can carry 17 tonnes, has never made a single flight in the country.

The operation involved an initial outlay of 3 million dollars (191 million meticals) to bring the aircraft from Indonesia to Maputo, to which was added another 930,000 dollars (59 million meticals) related to renting the aircraft during the year it was inactive. LAM also said that the aircraft had not received final approval from manufacturer Boeing due to structural modifications made to the freighter.

The acquisition of the Boeing was initially promoted as a solution to strengthen the company’s operational capacity, especially in cargo transport, which, according to the management at the time, had a high profit potential. The freighter was due to start operating in March 2024, under the management of Fly Modern Ark, the company contracted to manage LAM during that period.

Today, LAM faces significant challenges, including a reduced fleet made up of one Boeing 737, two Q400s, two Bombardier CRJ 900s and two Embraer 145s, operated by its subsidiary, Moçambique Expresso. Despite having a monopoly on domestic flights, the state-owned company has been criticised for frequent delays, cancellations and management difficulties.

In addition, LAM is dealing with an accumulated debt of 300 million dollars (19.1 billion meticals), a situation that further aggravates its financial sustainability. The return of the cargo ship highlights the difficulties in aligning strategic management with the company’s practical operations.

The case raises questions about the efficiency of LAM’s management planning and execution capacity, as well as exposing gaps in the coordination between operational goals and the reality of the aviation market in Mozambique.

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