Marracuene, 15 Oct (AIM) – The Minister of Transport and Logistics, João Matlombe, has challenged those responsible for the restructuring process of the publicly-owned company Air Mozambique (formerly known as Mozambique Airlines, LAM) to present concrete solutions, with defined timelines and verifiable results, aimed at improving the company’s operational performance and financial sustainability.
Under the plan to restructure LAM, the government has authorized three state-owned companies to acquire stakes of the country’s flag carrier. The companies in question are: Hidroelectrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa dam on the Zambezi river, in the central Mozambican province of Tete, which acquired of 25.2 percent of the share capital; the rail and port company, CFM, and the insurance company EMOSE, which acquired 15.4 percent of LAM’s shares by investing 22 million dollars each.
According to the minister, who was speaking on Wednesday, at the 2nd Session of the Coordinating Council of the Ministry of Transport and Logistics, held in Macaneta, southern Maputo province, LAM does not just need to survive, it needs to regain its capacity to serve the country and to operate in a sustainable manner.
“The restructuring process must encompass the company’s management, fleet utilization, the organization of operations, and the provision of services to passengers. This airline is important for national connectivity, territorial integration, tourism, and linking Mozambique to international markets”, he said.
“It must be matched by measures designed to improve operational efficiency and reduce reliance on state support”, the minister added.
The measures highlighted include defining a fleet management strategy, controlling costs, increasing revenue, and strengthening operational discipline and managerial accountability.
“We need a more reliable, operationally efficient, financially sustainable, and results-oriented company. The restructuring process must move toward the implementation of concrete measures, supported by mechanisms to evaluate their execution and the results achieved. We expect those in charge to present concrete solutions, clear timelines, and verifiable results. We cannot allow the restructuring to turn into an endless cycle of diagnostics and meetings”, he declared.
The minister added that monitoring the process should make it possible to verify compliance with the measures adopted, as well as their impact on the company’s operational capacity. “The government will continue to monitor the restructuring process of LAM, with a view to stabilizing the company, restoring passenger confidence, and improving service delivery.”
Over the last 10 years, LAM, which used to operate with just two airplanes, has been shaken by a financial crisis involving corruption practiced by the company workers during the acquisition of services. The company has recorded debts with suppliers, valued at over 230 million dollars as a result of embezzlement.
In 2024, LAM was under the management of the South African company Fly Modern Ark (FMA), which was hired by the government to bring the company into profitability and rescue it from bankruptcy. However, the effort did not solve anything.
(AIM)
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