Following improvements in flight consistency and an increase in available seats, revenue for LAM Mozambique Airlines reached US$40 million (R698 million) between May and August.
At a press conference earlier this month, Club of Mozambique reported that the increase was driven by the acquisition of a new aircraft, tighter control over ticketing and revenue, stricter oversight of credit sales and debt collection, and a centralised purchasing process for goods and services.
Agostinho Langa, Chairman of the Board of Directors of the Mozambique Ports and Railways, which is part of the new shareholder structure, said LAM was achieving financial results that allowed it to cover its operations, including paying off debts with suppliers.
The airline is also planning to purchase five aircraft by December, with feasibility studies under way for the opening of new routes, according to Langa.
Club of Mozambique also reported that LAM had renewed its contract with the company’s chairman, Dane Kondic, for four years. Kondic will work exclusively with LAM following the controversy around his appointment by Air Botswana.
Kondic was appointed chairman of LAM’s board in May but at the end of June was also appointed chairman of the board of directors of Air Botswana. This caused confusion as to whether he would represent both airlines but LAM later said Kondic would work exclusively with them.
