The state-owned company Linhas Aéreas de Moçambique (LAM) has announced that a comprehensive restructuring is underway to strengthen the airline’s operational sustainability and increase its competitiveness in regional and international markets.
In a statement, which also confirms the departure of the previous management and the appointment of a new management committee led by Serbian-Australian Dane Kondic, LAM assures that the process will ensure the efficient provision of air transport services in a safe manner and in compliance with international quality standards, addressing the challenges the company has faced in recent years.
Among the issues highlighted in the document are the obsolescence of part of the fleet, recurring financial difficulties, and increasing competition in the aviation sector. “The Government, as the majority shareholder, has reiterated its commitment to revitalizing LAM, ensuring its financial viability and the modernization of its services.”
“This process represents a strategic opportunity to boost the national aviation sector, enhance mobility and trade, thereby strengthening the role of air transport as a fundamental pillar for the country’s socioeconomic development,” it states.
The state-owned airline emphasizes that the restructuring aims to significantly contribute to increased passenger traffic, the expansion of tourism and cargo transport, the strengthening of connections with the Mozambican diaspora, the attraction of foreign exchange, the increase of tax revenues, and the growth of Gross Domestic Product.
This week, the State Equity Management Institute (IGEPE), meeting in an extraordinary general assembly of LAM, decided with immediate effect to terminate the functions of the Chairman of the Board of Directors (PCA), Marcelino Gildo Alberto, as well as the directors responsible for Finance, Human Resources, and Corporate Services, Altino Xavier Mavile, and for Technical and Operations, Bruno Miranda.
At the same meeting, the appointment of a non-executive board of directors was approved, composed of representatives from state-owned companies that became shareholders of the airline this year, namely the Ports and Railways of Mozambique (CFM), Cahora Bassa Hydroelectric (HCB), and the Mozambican Insurance Company (Emose).
The appointment of a “management committee, subordinate to the non-executive board of directors, with executive functions, responsible for managing the company and ensuring the continuity of operations” was also approved.
For several years, LAM has faced operational problems related to a reduced fleet and lack of investment, with some incidents reported—none fatal—linked by experts to inadequate aircraft maintenance.
Data show that in 2021 alone, LAM recorded a loss of over 1.4 billion meticals (21.7 million US dollars), in 2022 a loss of 448.6 million meticals (6.9 million US dollars), in 2023 a loss of 3.9 billion meticals (60.5 million US dollars), and in 2024 a loss of 2.2 billion meticals (34.1 million US dollars).
The restructuring aims to significantly contribute to increasing passenger traffic, expanding tourism and cargo transport, strengthening connections with the Mozambican diaspora, attracting foreign exchange, increasing tax revenues, and boosting Gross Domestic Product.
In February, the government announced the sale of 91% of the State’s shares in the airline through a private negotiation. The estimated amount to be raised from the sale of State shares, approximately 130 million US dollars (8.3 billion meticals), is expected to be used for the acquisition of eight new aircraft and the company’s restructuring.
The Mozambican President, Daniel Chapo, recently stated that there are “foxes and corrupt individuals” within Linhas Aéreas de Moçambique who have “conflicts of interest” and have prevented the restructuring of the company as planned in the first 100 days governance plan.
The Mozambican government announced that it will proceed with a forensic audit of the company’s accounts for the past ten years, a process expected to be completed within six months. Subsequently, a government source also admitted that it will be necessary to “reduce the number of employees” at the airline, currently around 800, due to the reduced fleet.
Get to Know Dane Kondic’s Profile in Depth
At 60 years old and holding Australian and Serbian nationalities, Dane Kondic has a 35-year career (1989–2024) in the aviation industry, having held roles ranging from operational levels to strategic leadership of major airlines.
▪ 2021–2024: CEO and Chairman of the EuroAtlantic Airways Group and I-Jet Aviation;
▪ 2013–2018: CEO and Chairman of Air Serbia, where he led an exemplary restructuring and repositioning process, expanding the fleet from 4 to 21 aircraft;
▪ 2011–2012: Commercial Vice President at Abacus International;
▪ 2008–2010: Vice President of North Asia GTA/Travelport;
▪ 2005–2007: General Manager of Kuoni Travel for the Asia-Pacific region;
▪ He holds a Master of Business Administration (MBA) with a specialization in International Business and Marketing from the University of Technology Sydney, and a Bachelor’s degree in Accounting and Finance from the University of New South Wales, Australia.
