The Competition Regulatory Authority (ARC) has imposed a fine totaling 11.1 million meticais (USD 173,000) on Linhas Aéreas de Moçambique (LAM) for unlawfully charging a surcharge and for hindering an official investigation, reported newspaper O País on Monday, August 11.
According to the ARC, LAM applied, on domestic flights, a fee originally created to offset fluctuations in fuel prices on international flights, and continued to do so even after the government banned the practice in 2021. In some cases, the surcharge amounted to as much as 70% of the ticket price. For example, one ticket costing 10,000 meticais (USD 156) included about 6,000 meticais (USD 94) solely for the surcharge.
The regulator stated there was no legal or accounting basis for such a charge, accusing LAM of falsifying the real price of tickets, financially harming passengers, and abusing its dominant position in the national market.
The situation was further aggravated by the company’s failure to provide documents and information requested during the investigation. The ARC said “maintaining the surcharge was aimed at increasing revenue and covering operational and social responsibility costs, such as fuel and salaries.”
LAM was fined 8.3 million meticais (USD 130,000) for the unlawful surcharge and 2.7 million meticais (USD 43,000) for failing to cooperate with the investigation. The fines must be paid in full within 15 days, and the company has two months to completely remove the surcharge from its domestic flights.
The ARC has forwarded the case to the Attorney General’s Office, which may take further legal action if additional evidence of wrongdoing by the state-owned airline emerges.
Source: Diário Económico
