Maputo, June 25, 2026 (Lusa) - Mozambique’s Civil Aviation Master Plan provides for the restructuring of flag carrier LAM, which it describes as occupying a “central but fragile position”, in order to strengthen the state-owned airline’s competitiveness and ensure its sustainability.
The Civil Aviation Master Plan (PDAC) 2026–2045, approved by the Cabinet this month and to which Lusa gained access on Thursday, describes Linhas Aéreas de Mozambique (LAM) as a company affected by an ageing fleet, insufficient profitability and growing competitive pressure from regional and international carriers.
“Without these adjustments, LAM will remain vulnerable to growing competition from regional and international carriers,” the plan warns.
The plan includes the turnaround of the company as one of the nine strategic pillars of aviation policy for the next 20 years.
One pillar provides for the restructuring of the company, the renewal and expansion of the fleet, the strengthening of internal governance, the expansion of geographical coverage and the pursuit of strategic international partnerships to enhance its competitiveness.
According to the sectoral analysis, excessive reliance on the domestic market has made the carrier particularly vulnerable to fluctuations in the domestic economy. The plan notes that over 80% of the company’s operations are concentrated on domestic routes, whilst its international presence remains limited, restricting the generation of foreign currency revenue and the diversification of income sources.
Despite these weaknesses, LAM continues to play a dominant role in the national air transport system. At Maputo International Airport, the country’s main air gateway, the airline accounts for around 60% of traffic. The same share is recorded in Beira, whilst in Nacala the dependence is virtually total, with the airline responsible for around 99% of passenger traffic.
The document also notes that LAM is the main operator of domestic routes and maintains a significant role in regional routes, operating in a market where air transport continues to be considered essential for Mozambique’s territorial integration, due to the vast distances, limitations of the land transport network and the need to connect scattered economic centres.
To finance the airline’s modernisation, the plan suggests the international mechanism known as ‘Sale and Leaseback’ as an alternative, whereby aircraft are sold and subsequently leased back to the operator itself, freeing up financial resources and enabling a faster renewal of the fleet. The document also recommends making use of the instruments provided for in the Cape Town Convention and mobilising public-private partnerships to support the company’s recovery.
The carrier’s financial situation is also linked to the difficulties faced by other players in the sector. The PDAC notes that Aeroportos de Mozambique (ADM) has a negative net worth of around 1.26 billion meticais (€16.9 million) and total debt exceeding 24 billion meticais (€322.7 million). Among the outstanding amounts identified in the document is a debt owed by LAM to ADM estimated at 4.97 billion meticais (€66.8 million).
The assessment also identifies risks in the technological sphere. The audit cited in the plan detected “serious vulnerabilities” in cybersecurity at LAM and Maputo International Airport, against a backdrop where national operators do not yet have sufficiently robust systems for the continuous monitoring and assessment of cyber risks.
The plan also identifies “LAM’s challenges” and its “weak competitiveness” as among the main constraints to the development of the country’s civil aviation sector, alongside high fares, a lack of modern infrastructure, a shortage of qualified staff and the financial limitations of institutions in the sector.
PVJ/AYLS // AYLS
Lusa
