{"id":30488,"date":"2022-12-08T11:35:26","date_gmt":"2022-12-08T11:35:26","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/all-news\/flag-carrier-in-alarming-situation"},"modified":"2022-12-08T11:35:26","modified_gmt":"2022-12-08T11:35:26","slug":"flag-carrier-in-alarming-situation","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/all-news\/flag-carrier-in-alarming-situation","title":{"rendered":"Flag-carrier in \u2018alarming situation\u2019"},"content":{"rendered":"

Africa-Press – Mozambique. <\/strong><\/span>The Mozambican non-governmental organisation (NGO) Centro de Integridade Pu\u0301blica (CIP) said on Tuesday that the grounding of the four aircraft operated by Mozambique Airlines (LAM) is a result of the \u201calarming situation\u201d the company finds itself in.<\/p>\n

On Monday, the state-owned carrier announced in a statement \u201cthe unavailability\u201d of its four aircraft due to the need for \u201cmaintenance,\u201d a situation that led to the \u201crescheduling of flights\u201d.<\/p>\n

In an analysis of the context that LAM is experiencing, CIP believes that the company is facing an \u201calarming situation\u201d in which it is not generating profits to maintain its operational capacity.<\/p>\n

\u201cWith an operating cost structure that exceeds its capacity to generate gross profit, the deficit between gross profit and operating costs for 2021 was estimated at 424 million meticais [\u20ac6.3 million],\u201d according to the NGO\u2019s analysis.<\/p>\n

\u201cLAM is unable to operate the air space due to the lack of sufficient aircraft for that purpose, coupled with low investment and poor maintenance, despite numerous state financial rescue interventions in the company,\u201d the document said.<\/p>\n

To maintain its activity, the airline has to hire aircraft, which increased the company\u2019s costs to the state. Another reason that has contributed to LAM\u2019s failure is the lack of \u201ca guiding framework for salary policies for members of the board of directors.<\/p>\n

The gap is common in the state business sector, allowing companies with negative net results to have a heavy salary structure, the NGO noted. The CIP stressed that LAM constitutes a risk to public finances as it systematically makes losses for the state.<\/p>\n

Last month, Mozambique\u2019s minister of transport and communications, Mateus Magala, expressed optimism in parliament that the company would recover in the short and medium term, saying that it had started to settle its accounts. Lusa could not get a reaction from the airline on CIP\u2019s analysis.<\/p>\n

For More News And Analysis About Mozambique<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mozambique. The Mozambican non-governmental organisation (NGO) Centro de Integridade Pu\u0301blica (CIP) said on Tuesday that the grounding of the four aircraft operated by Mozambique Airlines (LAM) is a result of the \u201calarming situation\u201d the company finds itself in. On Monday, the state-owned carrier announced in a statement \u201cthe unavailability\u201d of its four aircraft […]<\/p>\n","protected":false},"author":84,"featured_media":30487,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[233,281,283],"class_list":["post-30488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-mozambique","tag-mozambique"],"yoast_head":"\nFlag-carrier in \u2018alarming situation\u2019 - Mozambique<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mozambique\/all-news\/flag-carrier-in-alarming-situation\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Flag-carrier in \u2018alarming situation\u2019\" \/>\n<meta property=\"og:description\" content=\"Africa-Press – Mozambique. The Mozambican non-governmental organisation (NGO) Centro de Integridade Pu\u0301blica (CIP) said on Tuesday that the grounding of the four aircraft operated by Mozambique Airlines (LAM) is a result of the \u201calarming situation\u201d the company finds itself in. 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The Mozambican non-governmental organisation (NGO) Centro de Integridade Pu\u0301blica (CIP) said on Tuesday that the grounding of the four aircraft operated by Mozambique Airlines (LAM) is a result of the \u201calarming situation\u201d the company finds itself in. 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