Thursday, August 5, 2021

Mozambique’s national airline to sell aircraft to cut cost – Report

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Mozambique’s national flag carrier, LAM, will sell its Embraer-branded aircraft to standardise its fleet and minimise operation costs, daily newspaper Jornal Noticias reported on Monday.

“It doesn’t make sense that a small company like LAM is flying planes with three to four different brands,” Raimundo Matule, administrator of the Institute for the Management of State Holdings, IGEPE, told the paper, admitting that the company is facing structural problems.

LAM’s current fleet has six aircraft of three different brands, two of which are of the Embraer-190 model.

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The IGEPE administrator did not give the exact number of aircraft that would be involved in the sale, but said the reduction brings great cost rationalization, and will enable the company to operate with two types of aircraft at most.

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The IGEPE injected about 700 million meticais (over 11 million U.S. dollars) in 2020 into the national airline, whose revenues plummeted due to the crisis caused by the COVID-19 pandemic, the report said.

Xinhua/NAN

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