Mozambique: There are ‘groups that want to hijack’ LAM Mozambique Airlines, government says – Watch

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Mozambique: There are ‘groups that want to hijack’ LAM Mozambique Airlines, government says – Watch

1:43 CAT | 28 Apr 2025

Screen grab: TV Sucesso

The Mozambican government admitted on Saturday that there is a conflict of interests between groups that want to “hijack” the state-owned Linhas Aéreas de Moçambique (LAM), interfering in the restructuring plan of the flag carrier.

“All the delay [in the restructuring] that we have had so far is the result of the conflict of interests, the conflict of groups that are trying to hijack the company and the government will never allow this,” said the Minister of Transport and Logistics, João Matlombe, on the sidelines of the inauguration ceremony of three locomotives in Maputo.

On 5 February, the government authorized the sale of 91% of the state’s stake in the flag carrier to state-owned companies, indicating that the amount would be used to acquire eight aircraft, actions that aim to restructure the company within the scope of the ‘100 Days of Government’ programme.

The resolution approved by the Mozambican government determines that only three state-owned companies – the Cahora Bassa Hydroelectric Plant (HCB), the Mozambique Railways (CFM) and the Mozambican Insurance Company (Emose) – may acquire the state’s stake in LAM.

Speaking to journalists, Minister Matlombe denounced internal and external “pressure” on the restructuring of the company, stating that the aim is to “maintain the current stage, the way the company continues to operate”.

“We will let the shareholders work on implementing the guidelines that the government has given. Unfortunately, we expected to complete this mission within 100 days, but given the complexity of the mission itself, the government had to make the decision to cancel the entire process that was being carried out because it realized that there was a great deal of conflict of interest,” explained Matlombe.

Due to LAM’S high levels of debt. the Mozambican government expects it to achieve operational stability only about three years after selling state shares in the company to public companies.
For several years, LAM has been facing operational problems related to a small fleet and lack of investment, with a number of non-fatal incidents reported, which experts have attributed to poor aircraft maintenance.

The recurring problems at the flag carrier, including constant flight cancellations, led to the hiring of the South African airline Fly Modern Ark (FMA).

The contract ended on September 12, 2024 and had been in force since April 2023, when FMA was called in to implement a strategy to revitalize the company after years of operational problems related to a small fleet and lack of investment, with a number of non-fatal incidents reported, which experts have attributed to poor aircraft maintenance.

When FMA took over management of the state-owned airline, it acknowledged that LAM had an estimated debt of around US$300 million (€269 million at current exchange rates).

Last week, the Mozambican Public Prosecutor’s Office (PGR) announced the opening of proceedings to investigate the details of the agreement signed between the FMA and Mozambican entities to restructure the state-owned LAM.

The PGR also announced that proceedings into alleged corruption schemes in ticket sales at LAM, which has not yet been named as defendant, are also under investigation, with the aim of identifying the ownership or ownership of the automatic payment terminal machines used to sell tickets, determining the losses and identifying those responsible.

On average, LAM currently has 915 daily passengers for national and regional destinations.