As promised by the Mozambican President, Daniel Chapo, during his speech marking the 100-day review of his administration, a new phase of the restructuring process of Mozambique Airlines (LAM) is already underway.
To this end, on Tuesday (13th), the management team previously leading the company was dismissed, and a new management commission was appointed.
According to a statement received by Diário Económico, the decision—announced by the Institute for the Management of State Holdings (IGEPE)—was made during an extraordinary general assembly of LAM, with immediate effect regarding the termination of duties of the Chairman of the Board of Directors (CEO), Marcelino Gildo Alberto, along with the directors responsible for Finance, Human Resources and Corporate Services (Altino Xavier Mavile), and Technical and Operational Affairs (Bruno Miranda).
The statement also confirms the approval of a new non-executive board of directors, composed of representatives from state-owned companies that became shareholders of the airline this year, namely Ports and Railways of Mozambique (CFM), Hidroeléctrica de Cahora Bassa (HCB), and the Mozambican Insurance Company (Emose).
The appointment of a “management commission, reporting to the non-executive board of directors, with executive functions, responsible for overseeing the company’s management and ensuring the continuity of operations” was also approved. This commission will be led by Dane Kondic, former CEO of Air Serbia and former Chairman of the Board of Directors of the Portuguese airline EuroAtlantic.
Daniel Kondic
Daniel Chapo recently stated that there are “foxes and corrupt individuals” within Mozambique Airlines (LAM), who have “conflicts of interest” and have obstructed the restructuring of the company as outlined in the government’s 100-day action plan.
For several years, LAM has been facing operational challenges related to a reduced fleet and lack of investment, with a number of non-fatal incidents reported—attributed by experts to poor aircraft maintenance.
Data indicates that in 2021 alone, LAM recorded a loss of over 1.4 billion meticals (approximately 21.7 million USD), in 2022 a loss of 448.6 million meticals (6.9 million USD), in 2023 a loss of 3.9 billion meticals (60.5 million USD), and in 2024 a reported loss of 2.2 billion meticals (34.1 million USD).
In February, the government announced the sale of 91% of the State’s shares in the airline through a private negotiation process. The estimated revenue from the sale—around 130 million USD (8.3 billion meticals)—is expected to be allocated toward the acquisition of eight new aircraft and the restructuring of the company.
Disputes with EuroAtlantic
In March, the Portuguese airline EuroAtlantic Airways (EAA) announced that it had terminated its contract with LAM due to the airline’s “failure to pay its substantial financial debts.” At the time, the company explained that the debts were incurred in relation to the reinstatement of the Maputo–Lisbon route. “EAA began operating this route in December 2023 and was only informed of the sudden suspension of all services on this route on February 11, 2025,” the company noted.
In response to this situation, in April, the government decided it would pay only 192 million meticals (three million USD) of the 1.3 billion meticals (21 million USD) demanded by EuroAtlantic Airways following the termination of the contract to operate the Maputo–Lisbon route. The information was provided by the Minister of Transport and Logistics, João Matlombe, who described the amount initially claimed by the Portuguese airline as “exaggerated.”
“As part of the restructuring, we decided to terminate the contract with EuroAtlantic. The company demanded 21 million USD, but after a detailed analysis of the contractual clauses, it was concluded that the fair amount, specifically the notice period compensation, is around three million USD. The technical team is still reviewing it, but that’s the figure we have,” the minister explained.
Abandoned by the company for nearly 12 years, the Maputo–Lisbon route was resumed in December 2023 and was part of the revitalization plan for the Mozambican airline after South African firm Fly Modern Ark (FMA) took over its management to assist in the restructuring process. The service was operated using a 302-seat Boeing 777, through a partnership with EuroAtlantic.
The EAA claimed that LAM had failed to meet its financial commitments. It therefore decided to terminate the contract with immediate effect.
South African Fly Modern Ark Takes LAM to Court
Along the same lines, the South African consultancy Fly Modern Ark (FMA), hired by the Mozambican government to assist in the recovery process of LAM, has initiated legal action against the national airline, claiming non-payment of fees related to a restructuring contract.
The lawsuit pertains to a restructuring project carried out by FMA for the Mozambican airline between 2023 and 2024. This legal battle adds further complexity to LAM’s ongoing challenges with operational efficiency and financial stability, negatively affecting the operations of travel agencies across Southern Africa.
Mozambique’s Public Prosecutor’s Office has also opened an investigation into the hiring of the South African firm Fly Modern Ark. The case is currently in the preliminary investigation phase, with no formal defendants yet. However, the objective of the process is to “determine whether there were acts of corruption and violations of administrative and financial regulations that may warrant the accountability of the managers involved.”
In April 2023, when Fly Modern Ark assumed management of the airline (under a contract that ended in September 2024), the firm acknowledged that LAM had an estimated debt of 300 million USD. Over the course of its work, the South African entity reported money diversion schemes within LAM, with losses of over 3 million USD through ticket offices using point-of-sale (POS) terminals that did not belong to the company.
Forensic Audit of LAM’s Accounts
Recently, President Daniel Chapo’s administration announced that it will proceed with a forensic audit of the airline’s accounts covering the past ten years—a process expected to be completed in less than six months. Following this announcement, a government source also admitted that it would be necessary to “reduce the number of employees” at the airline from the current 800, due to the limited size of its fleet.
Mozambican President, Daniel Chapo, said that there were people who prevented the restructuring of the airline due to conflicts of interest.
In response, Fly Modern Ark expressed its willingness to cooperate with the forensic audit of the airline’s finances, stating that LAM’s problems are linked to alleged “internal networks responsible for theft and mismanagement.” The company also accused the national airline of breaching the agreement between the parties by paying only half of the final invoice.
The government has rejected claims that LAM’s current losses are a result of FMA’s management. “The recorded losses are the result of many years of accumulated difficulties, and it is not accurate to place sole responsibility for the negative results on Fly Modern Ark’s management,” said the Minister of Transport and Logistics, João Matlombe.
Currently, LAM transports an average of 915 passengers per day on domestic and regional routes. However, the sustainability of this flow is at risk due to the airline’s insufficient fleet and the fragility of its operational structure.
Meet Dane Kondic, the New Head of LAM’s Management
Dane Kondic is an Australian executive, born in Sydney with Serbian roots, and brings extensive global experience in the civil aviation sector. He was the first CEO of Air Serbia and also worked at EuroAtlantic. Previously, he served as Business Development Manager at Qantas in Australia in the late 1990s and worked at Malaysia Airlines for nearly four years.
He later served as Regional Director for Southeast Asia at Sabre Airline Solutions. Before that, he was Vice President of Commercial at Abacus International in Asia and also held roles at GTA (part of Travelport) and Kuoni Travel in China.
Cleusia Chirindza
