During the ceremony to commemorate the 60th anniversary of the African Development Bank (AfDB), held on Monday (23) in Maputo, the Mozambican Minister of Transport and Communications, Mateus Magala, clarified the government’s position on the future of Mozambique Airlines (LAM).
Speaking to the press, he said that although privatising the carrier is not out of the question, the main focus is on strengthening the company’s foundations before making any definitive decision.
‘We need three to five years to fine-tune the machine and make LAM an attractive company, both for the public and the private sector,’ said Magala. ‘Only when we have a solid company will we be able to discuss the best model for defending our interests, be it public, private or through a partnership,’ he added.
LAM’s restructuring and the challenges it faces
LAM recently concluded a restructuring process with Fly Modern Ark (FMA), a South African company hired to lead the revitalisation of the airline, which was in serious financial and operational crisis. This process, which began in 2023, aimed to guarantee the continuity of the carrier’s operations, preserving more than 720 jobs and maintaining national and international flights.
Between 2020-23, the state invested 57.3 million dollars (around 3.7 billion meticals) to financially rescue Linhas Aéreas de Moçambique (LAM) and Aeroportos de Moçambique (ADM). This amount was essential to mitigate the low profitability and liquidity problems of the companies in the aviation sector, which are facing payment delays with internal and external creditors.
With the appointment of Américo Muchanga as LAM’s new president in July 2024, the carrier is looking to consolidate the progress made and expand its fleet, with the planned acquisition of four new aircraft by the end of the year, with the aim of strengthening the company’s competitiveness in the regional and intercontinental markets.
Magala stressed that the process of structurally strengthening LAM will be decisive in defining the company’s future management model, reiterating that ‘privatisation will not be ruled out, but any decision will be made on the basis of solid foundations’.
Felisberto Ruco