Government to accelerate search for partnerships to make LAM viable

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Government to accelerate search for partnerships to make LAM viable

1:19 CAT | 09 Jul 2018

Photo: O País

The government will accelerate the search for “strategic” partners to enable the viability of the flag carrier, Mozambique Airlines (LAM), which is currently experiencing an unprecedented crisis that has seen the cancellation of flights due to lack of money supply to the airline.

According to the Prime Minister, Carlos Agostinho do Rosário, the situation of the flag carrying company is on the priority list of the executives and the framework of the restructuring of public companies and will now gain a new rhythm.

“We have a restructuring program for LAM and this is work in progress. We will accelerate ithe programme so that we can find a strategic partner that can join us and make LAM viable, ” said the Prime Minister on at a press conference on Sunday, marking the end of his four-day working visit to province of Niassa.

The LAM crisis hit historic levels last week, with cancellations of several flights that caused uncountable losses to several passengers who missed various appointments because they failed to travel.

The government says, it is aware of what is happening with flag carrying company and the priority is now to look for stable solutions.

“We know that LAM has difficulties stemming from internal debts, but what is more important is that we are looking for a strategic partner in order for us to make LAM’s operations possible. We are not looking for partnerships only from other public companies,” said Carlos do Rosário, who is confident that the process will have a positive outcome, though not setting any deadlines.

It should be noted that due to LAM’s financial crisis, shareholders decided to dismiss the last Board of Directors on Thursday. They appointed a management committee, on an interim basis, the members identity has not yet been revealed. This interim commission will manage the company until the appointment of another Board of Directors.