Mozambique: Regulations on competitive air transport approved – govt

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Mozambique: Regulations on competitive air transport approved – govt

8:35 CAT | 10 May 2018

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The Mozambican government on Tuesday approved regulations on competition in air transport, in order to establish “good competitive practices” in the civil aviation market.

Speaking to reporters at the end of the weekly meeting of the Council of Ministers (Cabinet), the government spokesperson and Deputy Education Minister Armindo Ngunga, said the regulation will cover any agreement that could have an anti-competitive effect on the market, and is applicable to all economic services in the sector.

After many years of an effective monopoly on the main domestic routes by Mozambique Airlines (LAM), last year the government liberalised the domestic market. LAM now faces competition from the UK-based company Fastjet, which is flying on some of the main domestic routes, including daily flights between Maputo and Beira and Nampula. Ethiopian Airlines is also expected to operate on the Mozambican domestic routes in the near future.

The Council of Ministers also approved a report on the execution of the 2018 State Budget in the first quarter of the year. This showed that public expenditure between January and March was 54.32 billion meticais (about 905 million US dollars), which is only 17.9 per cent of the total budget for the year of 302.9 billion meticais.

In the same period, the state mobilised revenue of 58.8 billion meticais, which is 18.4 per cent of the annual target of 222.8 billion meticais.

Source: AIM