Mozambican private sector wants end to LAM monopoly

20 December 2005

Maputo, Mozambique, 20 Dec – The Confederation of Business Associations (CTA), which represents Mozambique’s private sector, will ask the Maputo government to end the monopoly of national carrier LAM on national and international flights, officials have said.

CTA has worked with American state development agency USAID to create a study on the negative economic impact of LAM’s monopoly that will be presented to the government next year.

Presenting the report at a Maputo press conference, Andres Ricover, the CTA’s air transport consultant, said the liberalization being proposed was not privatization of LAM, but rather reforms to adapt the national flag flier to operate in a competitive market.

Allocation of state funds to LAM, reduction of bureaucracy and the opening of new routes are some of the proposals made in the CTA-USAID study.

The Mozambican government has mulled the privatization of LAM, which flies to all domestic destinations and enjoys a monopoly in the south of the country, for many years. (macauhub).