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Mozambican Airlines (LAM) announced today the renewal of its exclusive contract with the company’s chairman of the board, Dane Kondic, for four years, following the controversy surrounding his hiring by its Botswana competitor.
At a press conference today in Maputo about LAM’s restructuring, the chairman of the board of directors of Ports and Railways of Mozambique (CFM), Agostinho Langa, who sits on LAM’s non-executive board, said the contract was renewed for four years, noting that the Kondic will be dedicated exclusively to LAM.
“In addition to the commitment to LAM, there was that proclaimed commitment to Air Botswana, a contract which he had to terminate, but he also had other commitments in Australia,” so he was told that “he had to terminate those other commitments,” said CFM CEO Agostinho Langa.
“This also meant giving up some earnings, some of his own revenue, and during the negotiations we had to take that into account. It took us a few days, but the contract is signed,” he added.
Dane Kondic was appointed chairman of LAM’s management committee in May, but at the end of June, his appointment to the position of chairman of the board of directors of Air Botswana was also announced, according to the airline from that country.
Dane Kondic , who holds dual Serbian and Australian citizenship, has served, among other positions at airlines in several countries, as chairman of the board of directors of the Portuguese airline euroAtlantic.
In May, the appointment of a LAM non-executive board of directors was also approved, composed of representatives of the three state-owned companies that became shareholders of LAM this year: Hidroelétrica de Cahora Bassa (HCB), Ports and Railways of Mozambique (CFM), and Empresa Moçambicana de Seguros (EMOSE).
Mozambican airline LAM has been facing operational problems for several years related to a small fleet and lack of investment, with a number of non-fatal incidents attributed by experts to poor aircraft maintenance. The airline is currently undergoing a major restructuring process.
Mozambican President Daniel Chapo said on April 28 that there are “foxes and corrupt individuals” within LAM, with “conflicts of interest” that have prevented the company’s restructuring in its first 100 days in office, including the goal of acquiring three aircraft during that period.
The crisis has led the airline to virtually cease international flights this year, focusing instead on domestic flights.
To minimize recurring flight cancellations, the airline plans to acquire five Boeing 737-700 aircraft and, pending this process, has launched a tender to lease another five.
On average, LAM currently carries 915 passengers daily to domestic and regional destinations.
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