LAM Mozambique is seeking partners for two new joint ventures, which would see it return to long-haul services and branch out into cargo operations.

Since 2006, Maputo-based LAM has repositioned itself as a regional and domestic carrier, shifting to high-frequency, lowers capacity operations.

Today it serves 10 domestic and five regional routes using a fleet of two Embraer 120s, three Bombardier Q400s, three Embraer 190s and a Boeing 737-500.These will be joined by two ERJ-145s and a fourth E-190 in 2013, replacing the Embraer 120s, which are due to leave the fleet.

Mozambique’s political situation is table and GDP growth is expected to continue at 7% over the coming years, stimulated in part by the growth in mining. “We are currently preparing a new five-year business plan, taking into account the country’s economic growth,” said LAM CEO Marlene Manave.” By 2015, or maybe earlier, we may need bigger aircraft than the Embraer 190s because the market is growing quicker than expected.”

As part of this planning project, due for completion in January 2013, LAM is considering a return to intercontinental operations.”In a few years, we believe we will be able to build the feed we need for intercontinental routes.”

An initial study into the long-haul re-launch suggests this could be achieved in two ways. The first would be through a code share with a carrier that operates long-haul services, such as Kenya Airways over Nairobi.”The other way we are envisioning, which we are most likely to go for, is to find a partner and create a separate entity that could be called LAM International,” explained Man ave.

The new entity would draw on LAMs technical and distribution resources. A financial investor could help secure aircraft, or an airline partner could provide aircraft.”This way, the airline could carry the Mozambique flag. This is what the government wants, but to do this we need to have a partner and the demand first. If we launched operations today, it would lose money.”

In the shorter term, LAM is also considering a return to cargo operations by the end of 2013. “When we took the decision to move to smaller aircraft, we were aware we would lose cargo capacity. Cargo made up 5% of our revenues, so we focused on the other 95% .We’ also knew that the roads were becoming more developed, so that would have been another mode to compete with,” said Man ave.” That was before the boom. Now, with current developments, we are convinced there is a need for cargo.

She explained that, similar to the long-haul project, LAM is aiming to set up a cargo joint venture.LAM is actively seeking a partner and the project should be finalized in the first quarter of 2013,for launch towards the end of the year.” One of the options is to transfer one Embraer 120 to make it a full cargo aircraft .If we had to start by ourselves, we could do that,” she added.

Secondary Cities

Finally, LAM is planning to take a pair of ERJ-145s in 2013.These aircraft, which will replace its Embraer 120s, will be used to operate flights direct from Mozambique’s secondary cities to regional destinations within Africa.

“We want passengers to stay within our own network,” said Man ave. “There are now direct services to the provinces, whereas they used to be via Maputo. We are trying to recover the market that used to be ours, and to negotiate code shares with the airlines serving these routes. We need to right-size our operations. Our current service is losing money because we have too much capacity on the route.”

The ERJ-145s, operated by fully-owned subsidiary Mozambique Express (MEX), will take over LAMs service from Beira and Tete to Johannesburg. They will also be used to launch services between Tete and a destination in Malawi, most likely Blantyre or Lilongwe. The final new routes will be Nampula to Dar es Salaam and Lilongwe.

LAM is also aiming to grow its network into other African intercontinental hubs, feeding airlines such as Ethiopian and Air Seychelles .It will move the Q400s to serve tourist destinations, where the short paved runways are too harsh for jet operations.

In 2011 LAM carried 600,000 passengers, generating a $ 142 million turnover. It has been profitable since 2008, except in 2010 when fuel prices and currency fluctuations pushed it back into the red.”In 2011 we made a profit and we will make a profit in 2012,” said Man ave.

Anthony A Juma is the Editor and Director Commercial & Flights Operations at Wings Over Africa Aviation Limited. This is an Air Charter Company that specializes on Scheduled Passenger & Cargo Flights Mozambique. The website has guided thousands of travelers to achieve their dream holiday. For more information and guidance, visit the site at http://www.wingsoverafrica-aviation.com/index.php/sheduled-flights.html

Anthony A Juma is the Editor and Director Commercial & Flights Operations at Wings Over Africa Aviation Limited. This is an Air Charter Company that specializes on Scheduled Passenger & Cargo Flights Mozambique. The website has guided thousands of travelers to achieve their dream holiday. For more information and guidance, visit the site at http://www.wingsoverafrica-aviation.com/index.php/sheduled-flights.html

Author Bio: Anthony A Juma is the Editor and Director Commercial & Flights Operations at Wings Over Africa Aviation Limited. This is an Air Charter Company that specializes on Scheduled Passenger & Cargo Flights Mozambique. The website has guided thousands of travelers to achieve their dream holiday. For more information and guidance, visit the site at http://www.wingsoverafrica-aviation.com/index.php/sheduled-flights.html

Category: Travel
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