Mozambique: Knighthood Global’s focus in first three months will be to stabilise LAM

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Mozambique: Knighthood Global’s focus in first three months will be to stabilise LAM

6:58 CAT | 19 May 2025

File photo: Notícias

International aviation consultancy firm Knighthood Global has three months to “stabilise and reposition” Mozambique Airlines (LAM), according to information from the Abu Dhabi-based company itself,

In a note from the consultancy firm dated May 12 and seen by Lusa today, Knighthood Global explains that it was “appointed by the Government of Mozambique to help revitalise” LAM and “the country’s aviation sector in general”.

“The focus in the first three months will be to stabilise and reposition LAM Mozambique Airlines (Linhas Aéreas de Moçambique”),” reads the note, in which the consultancy firm also states that it will work with the new shareholders, the public companies Hidroelétrica de Cahora Bassa (HCB), Portos e Caminhos de Ferro de Moçambique (CFM) and Empresa Moçambicana de Seguros (EMOSE), “who have a mandate to procure the appropriate aircraft and re-establish a fleet”.

The consultancy firm foresees the “transformation” of LAM and the alignment of the company “behind a single strategy” to solve the carrier’s problems.

“In addition, the right connectivity will support tourism to Mozambique, and importantly, support the development and growth in other key sectors, including mining, oil, and agriculture,” it adds.
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The Mozambican flag carrier also confirmed in a statement the hiring of Knighthood Global, explaining that “it will be responsible for advising on the restructuring of LAM’s financial base, providing strategic support in the evaluation, selection and supply of aircraft suitable for operational needs”, among others.

“Aligning it with industry standards, reducing the level of debt and strengthening its investment profile,” adds LAM.

This intervention, LAM explains, “aims to respond to structural challenges that the company has faced, such as the obsolescence of part of the fleet, recurring financial difficulties and the intensification of competition in the aviation sector”.

“The involvement and collaboration of all LAM employees and all relevant social stakeholders will be crucial to (…) producing the desired results,” the Mozambican flag carrier stresses.

READ: Rescue of LAM Mozambique Airlines led by Knighthood Global – report

The Mozambican Institute for the Management of State Holdings (IGEPE) announced on 13 May the removal of LAM’s management and the appointment of a management committee to be chaired by Dane Kondic.

The decision was taken at an extraordinary general meeting of LAM, as part of the “revitalisation process” of the state-owned airline, with the immediate termination of the duties of Marcelino Gildo Alberto, who until then was chairman of the board of directors, and similarly of directors Altino Xavier Mavile and Bruno Miranda.

The appointment of a non-executive board of directors was also approved, comprising representatives of the three state-owned companies that this year became shareholders of LAM, namely HCB, CFM and EMOSE.

The appointment of a “management committee, subordinate to the non-executive board of directors, with executive functions, responsible for managing the company and ensuring the continuity of operations” was also approved, and will be chaired by Dane Kondic who has dual Australian and Serbian citizenship, and is a former CEO of Air Serbia and chairman of the board of directors of the Portuguese airline EuroAtlantic.

The government confirmed this month that it will proceed with a forensic audit of LAM’s accounts over the last ten years and restructure the company, which has around 800 employees.

The President of Mozambique, Daniel Chapo, said on April 28 that there are “foxes and corrupt individuals” within LAM, with “conflicts of interest” that had prevented the company from being restructured in 100 days of his mandate.

“One of the impactful actions we had planned for these 100 days was the acquisition of three aircraft for LAM,” President Chapo said. “However, when we decided that we would have at least three aircraft available before 100 days, we discovered that within LAM we had to set foxes to look after a chicken coop, or cats to look after mice.”

Source: Lusa