Brazilian aircraft manufacturer Embraer announced on Monday, 24 November, that it intends to expand its business into the African continent, particularly Mozambique, and is therefore investing in the production of aircraft with a capacity of up to 146 passengers.
“Our aircraft have 146 seats. We are the world leader in the production of aircraft in this category, allowing for direct connections between airports and cities that previously had no air links,” said Embraer’s Vice-President, João Taborda, during the Brazil–Mozambique Business Forum, held as part of President Lula da Silva’s visit to the country.
Embraer is the world’s third-largest aircraft manufacturer and the market leader in the segment of aircraft with up to 150 seats. The Brazilian company, founded in 1969, is known for its role in the development of regional aviation and for producing commercial, executive, and defence aircraft.
Since February this year, the state-owned airline Linhas Aéreas de Moçambique (LAM) has been seeking aircraft in the market with the aim of replenishing its fleet and making its operations sustainable. In this context, João Taborda advised that investing in smaller aircraft helps improve airline efficiency.
“Many times, we see large aircraft flying with many empty seats, which is highly inefficient and costly for airlines. In the African market specifically, 85% of routes involve carrying fewer than 200 people per day. Therefore, it is highly effective for carriers to fly with as few empty seats as possible,” he explained.
For several years, LAM has faced operational challenges related to a reduced fleet and lack of investment, with some non-fatal incidents recorded and attributed by experts to poor aircraft maintenance.
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 this sale — around 130 million dollars (8.3 billion meticais) — is intended for the acquisition of eight new aircraft and the restructuring of the company.
Meanwhile, the Institute for the Management of State Holdings, meeting at an extraordinary general assembly of LAM, decided to dismiss the Chairman of the Board of Directors (PCA), Marcelino Gildo Alberto, and the administrators responsible for Finance, Human Resources and Corporate Services, Altino Xavier Mavile, and Technical and Operational Affairs, Bruno Miranda.
The same meeting approved the appointment of a non-executive board of directors composed of representatives of the state-owned companies that became shareholders of the airline this year, namely Portos e Caminhos-de-Ferro de Moçambique (CFM), Hidroeléctrica de Cahora Bassa (HCB), and Empresa Moçambicana de Seguros (Emose).
It also approved the creation of a “management committee, reporting to the non-executive board, with executive functions, responsible for leading the company’s management and ensuring the 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 stabilise and reposition the Mozambican airline.
“The focus in the first three months will be to stabilise and reposition LAM,” the consultancy’s statement said, noting that it would work in coordination with the new shareholders, with a mandate to acquire new aircraft and rebuild the fleet.
