LAM: “Future will be decided with a business mind”

The Minister of Transport and Communications said that in December he had received a report on the situation of Linhas Aéreas de Moçambique (LAM), “the process of reviewing, reassessing and validating the report” is under way.

The Mozambican Minister of Transport and Communications, Mateus Magala, said last Saturday (28.01) that he expects to decide the future of Linhas Aéreas de Moçambique (LAM) by March.

“I think that by March we will be in a position to make a decision on the future of LAM”, indicates a statement released today, citing statements made by the minister at the end of a visit to LAM, last Friday.

Mateus Magala said that he received a report on the company’s situation in December, “the process of reviewing, reassessing and validating the report” is underway.”

What we want is to have a company that we are proud of, sustainable, competitive, that does not represent a cost for the Government and that capitalizes on the national market, where it has almost a monopoly”, he underlined.

The choice will be made “with a business mind,” he said.”I cannot go ahead with whether we are going to privatize or transform the company into a partnership”, he said, adding that the ongoing assessment “involves top people in the region and in the world in terms of aviation and reforms”.

An analysis by the Center for Public Integrity (CIP), a Mozambican non-governmental organization, released at the end of the year, identified LAM as one of the technically insolvent companies in the state business sector – surviving on capital injections and state guarantees to respond towards creditors, and, as such, representing a high risk for the public debt.

Reinforcing the supervision and management of companies in the business sector and improving debt control are commitments by the Mozambican Government to the International Monetary Fund (IMF) under the financial assistance program of US$470 million (roughly the same amount in euros) up to 2025.

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