LAM denies large debt to BP – AIM report

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LAM denies large debt to BP – AIM report

7:44 CAT | 07 Mar 2018

Mozambique Airlines (LAM) has denied reports circulating in social media that it has had difficulty obtaining fuel for its aircraft because it owes three million US dollars to the fuel company BP.

In a note issued on Tuesday, LAM declared that it no longer has any debt to BP, and that its current problems in the north of the country are because BP, its normal supplier, has run out of jet fuel.

A source in the company told the independent newssheet “Mediafax” that it used to have a large debt to BP, but had managed to pay it off completely some time ago.

There is no official confirmation from BP that it has indeed run out of jet fuel. No BP source would speak to the press officially about this, though one anonymous source claimed that it was not true that the stocks of jet fuel were exhausted.

LAM has attempted to obtain fuel from another supplier, Puma Energy, but this company has demanded pre-payment. LAM has had no choice but to accept this, although it regards the demand for payment in advance as “unsustainable”.

The situation has led to delays and cancellations of flights from Nampula and Tete, including from those two cities to Johannesburg. Among the flights cancelled were some carrying football teams to Maputo for the “Mocambola” championship, which forced matches to be postponed.