Good afternoon. How much longer can LAM, Mozambique’s state-owned airline, go on for? The government has long had to subsidise the loss-making airline, but last April, it appointed South African company Fly Modern Ark (FMA) to fix its problems and make it profitable. FMA has managed to drive improvement in some areas, but other challenges remain. LAM is still unable to service its debts, mainly with banks but also to fuel suppliers. Last week, state-owned fuel company Petromoc was pressurised by the government to hand over fuel, despite being owed money by LAM, but this will not work with all creditors, or in the long term.
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