Mozambique Airlines delays payment of January wages

Login

Register

http://www.clubofmozambique.com/

Mozambique Airlines delays payment of January wages

2:24 CAT | 01 Feb 2021

File photo: DW

Mozambique Airlines (LAM) has announced that payment of its January salaries will be delayed.

LAM director João Carlos Pó Jorge explains in a document released on Friday that a “drop in revenues” put the state-owned air carrier “in a difficult financial situation”, and apologises for the delay in the payment while giving assurances that the company is “making every effort to meet its commitments”.

Salaries are generally paid by the 30th of each month, which was still possible in December.

“We want to emphasise that this resulted from the effort and commitment of all of us to maintaining safe and reliable operations,” Pó Jorge adds.

Although the document distributed to the media does not mention the Covid-19 pandemic, restrictions on air travel to limit the spread of the novel coronavirus have forced LAM to reduce flights, as has happened around the globe.

“A total reduction in cash flow and of costs with some partners” was necessary due to the pandemic, the director general of LAM had told the company’s on-board magazine at the end of the year.

“Many contracts do not allow [re]negotiation, but we did it up to the limit, and in some cases we had to suspend them”. “Even so, it was not enough, so we cancelled some aircraft rental contracts,” he added.

In January, the impact of Covid-19 was the reason given by LAM for not extending its service between Maputo and Lisbon, which had started during the pandemic in 2020.

Source: Lusa