Connect with us

Hi, what are you looking for?

Showbiz | Your Daily Dose of Zimbabwean Entertainment News & Celebrity BuzzShowbiz | Your Daily Dose of Zimbabwean Entertainment News & Celebrity Buzz

Business

LAM Mozambique Airlines Suspends Key Routes Amid Heavy Losses

LAM Mozambique Airlines (Linhas Aéreas de Moçambique) has announced the suspension of its intercontinental route to Lisbon, as well as regional flights to Harare, Zimbabwe, and Lusaka, Zambia, due to financial losses totaling $21.3 million, according to ch-aviation.

Speaking at a press conference on February 18, airline spokesperson Alfredo Cossa stated that the airline is also reviewing the viability of its Maputo-Cape Town route. This service is currently operated using a CRJ900 aircraft leased from South African carrier CemAir.

Cossa revealed that the Lisbon route, reinstated in December 2023 after a 13-year hiatus, had incurred losses amounting to $21 million. The service, initially operated with a Boeing 767-300ER and previously a Boeing 777-200ER leased from euroAtlantic Airways, has been plagued by delays and cancellations, likely due to overdue lease payments.

RELATED NEWS

The route had been relaunched under discounted fares while the airline was temporarily managed by Fly Modern Ark, which took over operations in April 2023. However, Cossa admitted that LAM had been sustaining the Lisbon route using revenue from its domestic operations, a strategy that is no longer viable.

In addition to long-haul struggles, LAM has been losing $307,000 on flights to Lusaka and Harare. These routes were operated by its subsidiary, MEX – Mocambique Expresso, using its only active Embraer E145 aircraft (C9-MEH). The final flight on the Maputo-Lusaka-Harare-Maputo route was on January 5, while another flight between Maputo, Quelimane, and Lusaka took place on January 12.

Advertisement. Scroll to continue reading.

Cossa explained that these cancellations are part of a broader restructuring strategy aimed at improving financial sustainability. The airline plans to prioritize more profitable domestic flights and enhance its operational management.

To stabilize the airline’s finances, the Mozambican government is moving to sell a 91% stake in LAM to public companies. Additionally, authorities have opened a tender for fleet renewal, inviting 14 companies to submit bids by March 5 for the acquisition of three Embraer E190s and four Boeing 737-700s.

ABOUT US

 

ShowBiz Zimbabwe

Dive into the world of Zimbabwean entertainment with Showbiz! We deliver the latest news on your favorite celebrities, musicians, actors, and everything in between.

Email: editor@showbiz.co.zw

You May Also Like

News

Car insurance is a legal requirement in Zimbabwe, and choosing the right provider can save you money while ensuring you’re adequately protected on the...

News

The National AIDS Council (NAC) has reassured the nation that there are sufficient stocks of antiretroviral (ARV) drugs to support the 1.2 million individuals...

Business

Owning a car in Zimbabwe is a significant milestone, offering convenience and freedom. However, with the rising costs of vehicles and the economy’s challenges,...

News

Trump’s order to end birthright citizenship affects Zimbabweans who enter the U.S. illegally. Birthright citizenship means that anyone born in the U.S. automatically gets...

Local News

A power surge on Sunday evening led to widespread blackouts in both Zimbabwe and Zambia, plunging the two southern African nations into darkness. Both...

Africa

In 2024, several African public figures have found themselves at the center of high-profile intimacy scandals that have leaked on social media. Among the...

Entertainment

Choice Children’s Choir showcases the rich cultural heritage of Zimbabwe after winning a Gold Medal in the Children’s Choir Championship Category and a Silver...

Business

Investing in Africa has become an increasingly attractive proposition, and Zimbabwe stands out as a prime candidate for foreign investment. While concerns about risk...

Advertisement