Mozambican flagship airline lacks funds for inter-continental flights

7 September 2012

Mozambican flagship airline Linhas Aéreas de Moçambique (LAM) lacks funds to launch the operations of LAM Internacional, an independent company focused on providing inter-continental flights, said LAM’s chief executive, Marlene Manave.

Noting that the company was seeking partners, and that the updated report on preferred destinations would be published this month, Manave said that the launch of LAM Internacional involved high costs, with an Embraer 190 aircraft, for example, costing US$150 million, or US$100,000 per month if leased.

When LAM Internacional was founded, in 2010, it was noted that the company would link Mozambique by air with destinations such as Brazil, China, and the United Arab Emirates, amongst others.

Cited by Mozambican newspaper O País, the chief executive of LAM said that the company was seeking a partner with the necessary funds to acquire the aircraft or which could bring the aircraft to the partnership, “because we have a market and we believe that the country’s economic development will allow for this operation.”

Despite having yet to identify a partner, Manave, who was speaking at the 30th Coordinating Council of the Transport and Communications Ministry held in Chidenguele, Gaza province, said that LAM was updating the economic feasibility study carried out in 2010, which “should be finished at the end of this month or the beginning of next month.”

Possible destinations include Lisbon (Portugal), Sao Paulo or Rio de Janeiro (Brazil), “given that these are markets with the biggest potential for the operation’s success,” said Manave adding that in terms of a flight to China, although there was interest in providing it, “we don’t know if that route will be viable, or not.”

Meanwhile, LAM is due to take delivery this month of a Boeing 737-500 aircraft and, at the end of October or beginning of November of its third Embraer 190 aircraft. (macauhub)