The three state-owned companies, introduced earlier this year as part of LAM Mozambique Airlines’ new shareholding structure, will inject US$130 million (R2,2 billion) to recapitalise the airline. According to Minister of Transport and Logistics, João Jorge Matlombe, the investment will be used to restructure operations and acquire new aircraft.
In February, the government transferred 91% of the airline’s share capital to the state companies Cahora Bassa Hydroelectric Power Plant, Mozambique Ports and Railways and Mozambique Insurance Company.
The cash injection is expected to improve the airline’s financial and operational situation through the acquisition of aircraft and addition of new routes, the stabilisation of punctuality and customer loyalty and the implementation of a new business plan for the period 2025-2030.
Matlombe said LAM’s fares still reflected a high cost structure due to high leasing costs and a dependence on fuel imports.
“The government is rationalising costs, optimising routes and renewing the fleet, with the aim of making fares progressively more affordable, without compromising the sustainability of the company.”
