Mozambique’s LAM undergoing “comprehensive” restructuring aimed at sustainability, competitiveness

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Mozambique’s LAM undergoing “comprehensive” restructuring aimed at sustainability, competitiveness

1:57 CAT | 15 May 2025

File photo: Notícias

Mozambique Airlines (LAM) said this Thursday that a “comprehensive” restructuring of the state-owned company, to “strengthen its operational sustainability” and “increase competitiveness in regional and international markets”, was underway.

In a statement, which also confirms the departure of the previous administration and the appointment of a management committee led by Dane Kondic, who holds dual Australian and Serbian citizenship, LAM says that the restructuring process will “ensure the provision of an efficient, safe air transport service in accordance with international quality standards”, responding “to the challenges that the company has faced in recent years”.

According to the LAM statement, the problems include “the obsolescence of part of the fleet, recurring financial difficulties and growing competitiveness in the aviation sector”.

The text also highlights that the Government of Mozambique, as the majority shareholder, “has reaffirmed its commitment to revitalizing LAM, ensuring its financial viability and the modernization of its services”.

“This process represents a strategic opportunity to invigorate the national aviation sector, boost mobility and trade, thus reinforcing the role of air transport as a fundamental pillar for the country’s socioeconomic development,” the communique reads.

The statement adds that the restructuring of the flag carrier “aims to contribute significantly to increasing passenger traffic, expanding tourism and cargo transportation, strengthening connections with the Mozambican diaspora, attracting foreign currency, increasing tax revenues and increasing Gross Domestic Product”.

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

IGEPE also reported, through a press release, that the decision had been taken that day, at an extraordinary general meeting of LAM, as part of the “revitalization process” of the state-owned airline.

The text also reported that Marcelino Gildo Alberto, until then chairman of the board of directors, and directors Altino Xavier Mavile and Bruno Miranda were leaving office with “immediate effect”.

The company’s extraordinary general meeting also approved the appointment of a non-executive board of directors, composed of representatives of the state-owned companies that this year became shareholders of LAM: Ports and Railways of Mozambique (CFM), Cahora Bassa Hydroelectric (HCB) and the insurance company 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” chaired by Dane Kondic, former CEO of Air Serbia and former chairman of the board of directors of the Portuguese company EuroAtlantic, was also approved.

According to this Thursday’s LAM statement, this management committee is made up of “highly skilled professionals with proven experience in the critical areas of commercial aviation”, a team that “was carefully selected to lead the company’s transformation, with a focus on restoring its financial sustainability, increasing operational efficiency and providing an excellent, safe and competitive service”.

The text also highlights that Dane Kondic has a 35-year career in the aviation industry, having held positions “from operational levels to strategic leadership of large airlines”.

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

The President of Mozambique, Daniel Chapo, said on April 28 that “foxes and corrupt individuals” within LAM, with “conflicts of interest”, had prevented the restructuring of the company in the first 100 days of his government.

Source: Lusa