LAM plans to rent aircraft

Maputo, 6 Aug (AIM) – The government has confirmed that Mozambique Air Lines (LAM) will resort to renting aircraft while the company is being restructured.

The company had announced last February the acquisition of eight aircraft from the sale of 91 per cent of the State’s shares in the company, worth 130 million dollars.

According to the government spokesperson, and Minister for State Administration, Inocêncio Impissa, speaking on Tuesday to reporters after a meeting of the Council of Ministers (cabinet), the rental of aircrafts in question will allow the company to carry out the normal purchase of its own aircrafts.

“It seems to be quicker to rent an aircraft or two, to allow the normal purchasing process to occur. What we can guarantee is that, the aircraft acquisition process is continuing, and what we know is that the acquisition plan is moving forward, while LAM itself is being reformed”, he said.

“The dream of acquiring aircraft for LAM will come true”, he promised.

According to Impissa, the establishment of the LAM restructuring committee should not only resolve the current financial crisis but also normalize the company’s operations and aviation in the country.

The company believes that renting aircraft will meet the demand for air transport services for goods and passengers, which has been growing in the national and regional markets, and “this continued growth trend in the coming years is expected to be driven primarily by mega-projects and tourism.”

The LAM Board of Directors consists of representatives of the three public companies that have taken shares in LAM, namely Hidroelectrica de Cahora Bassa (HCB), which operates the Cahora Bassa dam on the Zambezi River, the rail and port company, CFM, and the insurance company EMOSE.
(AIM)
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