As part of its restructuring efforts, Mozambique’s state-owned airline, Linhas Aéreas de Moçambique (LAM), has launched a tender for the short-term lease of five aircraft. The move aims to address operational improvement needs and is part of the company’s investment plan.
According to a statement by the airline, the leasing of these aircraft also seeks to respond to the growing demand for air services both domestically and regionally, driven by major electricity, oil, and gas projects, as well as the tourism industry.
The company stated that the tender is open to all national and international companies interested in participating, and will run until August 22. The bidding is for the short-term lease of up to five aircraft under a “wet lease” arrangement, meaning the aircraft must be fully operational, including crew, maintenance, and insurance.
For several years, LAM has faced operational problems related to a limited fleet and lack of investment, with a history of non-fatal incidents that experts attribute to poor aircraft maintenance.
In 2021 alone, LAM reported a loss of over 1.4 billion meticais (USD 21.7 million), followed by losses of 448.6 million meticais (USD 6.9 million) in 2022, 3.9 billion meticais (USD 60.5 million) in 2023, and 2.2 billion meticais (USD 34.1 million) in 2024. In February, the government announced the sale of 91% of the state’s shares in the airline through a private negotiation. The estimated revenue from the sale—around USD 130 million (8.3 billion meticais)—is expected to be used for acquiring eight new aircraft and restructuring the company.
In turn, the State Holdings Management Institute (IGEPE), during an extraordinary general assembly of LAM, decided to immediately terminate the duties of the Board Chairman Marcelino Gildo Alberto and the directors responsible for Finance, Human Resources and Corporate Services (Altino Xavier Mavile), and Technical and Operational areas (Bruno Miranda).
During the same meeting, a new non-executive board was approved, composed of representatives from the state-owned companies that became LAM shareholders this year: Portos e Caminhos-de-Ferro de Moçambique (CFM), Hidroeléctrica de Cahora Bassa (HCB), and Empresa Moçambicana de Seguros (Emose).
A “management commission” was also appointed at the meeting. Reporting to the non-executive board, this commission has executive functions and is responsible for managing the company and ensuring continuity of operations.
In May, the government hired Knighthood Global to lead the new phase of LAM’s financial and operational restructuring. The company, led by James Hogan, former president of Etihad Airways, was given a three-month deadline to stabilize and reposition the Mozambican airline.
“The focus in the first three months will be to stabilize and reposition LAM,” the consulting firm stated, emphasizing that it will work closely with the new shareholders and has a mandate to acquire new aircraft and rebuild the fleet.
Source: Diário Económico
