Mozambique’s flagship airline, Linhas Aéreas de Moçambique (LAM), wishes to cut back on fixed costs and discuss the delay or reduction of obligatory charges with aircraft rental companies.
In a Radio Mozambique address on the measures they were taking under the state of emergency in force since April 1, 2020, LAM Director-General, João Carlos Pó Jorge revealed that the company had to pay fixed costs such as wages, rents and, most expensive of all, aircraft rental.
“Airlines across the world are, in general, going to need financial support in one way or another. Obviously, the first step to take is to cut fixed costs and negotiate the postponement or reduction of mandatory costs with companies,” expressed Pó Jorge.
According to Mozambique’s daily newspaper, Noticias, LAM’s revenues have fallen from US$8 million to US$1 million a month since the coronavirus outbreak.
Noticia also stated that LAM had suspended about 200 international and regional flights, jeopardizing the company’s operation to a certain extent.