Mozambique has approved a $130 million recapitalization plan for its struggling flag carrier, LAM Mozambique Airlines, through a special purpose vehicle (SPV) funded by three state-owned enterprises, Cahora Bassa Hydroelectric Plant (HCB), Mozambique Ports and Railways (CFM), and Emose Insurance, Lusa disclosed.
The restructuring plan will enable LAM to acquire eight new aircraft while addressing its mounting debt obligations. Government officials explained that the annual repayments will be backed by the state, with oversight provided by the newly established SPV shareholders, TrendPulse Finance detailed.
Global consultancy Knighthood Global, led by former Air Serbia chief James Hogan, has been contracted to lead the recovery. Their mandate includes restoring operational stability, expanding the fleet, and embedding stronger corporate governance practices, as highlighted by Travel News Africa.
LAM has been plagued by years of financial distress, marked by shrinking fleets and persistent losses that disrupted flight schedules across Mozambique and the wider region. Industry observers warn that despite the capital injection, long-standing inefficiencies and governance risks could undermine the turnaround, parliamentary reports cited by 360 Mozambique revealed.
