Maputo, Nov. 13, 2025 (Lusa) - Mozambique's Prime Minister, Benvinda Levi, announced on Thursday in parliament that the restructuring of the state-owned airline Linhas Aéreas de Mozambique (LAM) will involve a reduction in the number of employees, and that two Embraer aircraft are expected to arrive this year.
Speaking in the parliament in Maputo, as part of providing information to MPs, the prime minister began by emphasising that "the Government has been adopting and implementing policies and actions with the aim of making the State Business Sector more sustainable, profitable and competitive", seeking "to avoid fiscal risks in this way".
In the case of flag carrier LAM, as part of its restructuring, she highlighted that, among other measures, the share capital of public companies Caminhos de Ferro de Mozambique (CFM - the country's railway operator), Hidroelétrica de Cahora Bassa (HCB - the Cahora Bassa dam hydroelectricity producer) and Empresa Moçambicana de Seguros (Emose - insurance), which are now new shareholders in LAM.
Likewise, the "restructuring of debt with commercial banks and suppliers", the "strengthening of operational, administrative and financial internal control processes" and the "resizing of the workforce to adjust it to the operational and technological reality of LAM".
A source linked to the process previously told Lusa that of the 800 employees the company had at the beginning of the restructuring in May, around 160 are expected to leave, of which almost 50 will be through retirement.
In parliament, Maria Benvinda Levi also said that in the process of acquiring aircraft by LAM, "two of them, Embraer 190 models, could arrive later this year," which will help "the company to gradually operate with its own aircraft.‘ "With the implementation of these and other actions, we intend to ensure the financial and operational stability of our company, raise the quality and frequency of the services provided, increase the coverage of air transport services and ensure their greater contribution to boosting the tourism industry," she added.
LAM had already wet leased an Airbus A319 from Ukraine in October, with a capacity to carry 144 passengers, to "strengthen its fleet," the Mozambican Ministry of Transport announced at the time.
This is an Airbus A319 aircraft that will be operated by a Ukrainian crew, in a package that also includes "maintenance and insurance services," he added.
According to the Mozambican ministry, the flag carrier currently has six aircraft, five of which are leased and one recently acquired Bombardier Q400, the first in 18 years.
On 23 September, the Mozambican government acknowledged difficulties in restructuring LAM, but stressed that the goal is to ensure a functional and safe airline, with the acquisition of five aircraft planned by December.
"We never said that the process of restructuring the company would be easy, we still have many difficulties ahead of us," said the Minister of Transport and Logistics, João Matlombe, when questioned by journalists about consecutive breakdowns in an aircraft recently acquired by the company.
LAM has been facing operational problems for several years related to a reduced fleet and lack of investment, with a number of non-fatal incidents reported, which experts attribute to poor aircraft maintenance. The company is currently undergoing a profound restructuring process.
The Mozambican state-owned company has virtually stopped operating international flights this year, focusing on domestic connections as part of the restructuring process that also led to the arrival of a new management team in May and the public companies HCB, CFM and Emose as shareholders.
PVJ/AYLS // AYLS
Lusa
