LAM Mozambique Airlines Board of Directors have been sacked, after the state airline was unable to buy fuel due to financial constraints on Wednesday (July 4) and Thursday (July 5), leaving passengers grounded in Maputo, including the country’s Prime Minister (PM), Carlos Agostinho do Rosario.

Mozambique’s PM was unable to fly to Niassa in the northeast for business on Thursday, as the airline had to cancel further flights, forcing him to use the air force to reach his destination.

In a statement on July 4, the airline said that, due to financial limitations to buy fuel, it was unable to operate the first flights on that day. The airline called the incident “embarrassing”.

Despite announcing that the aircraft had been refuelled, with flights starting at 11h20 on Wednesday, LAM once again was unable to operate. The airline said: “Faced with limitations to ensure the fuel supply, Jet A1, to the aircraft, LAM reports to the public that, regrettably, it felt forced to cancel flights.”

LAM explained that multi-sector intervention efforts were taken to ensure normal flight schedules resumed.

As of Friday, LAM operated flights as per scheduled, according to a LAM Spokesperson on behalf of Dr Alberto Mabjaia, LAM General Manager for South Africa, who added: “Certain constraints may be noted in the next few days, but efforts are being made to fully operate accordingly.”

The Mozambican state, which owns 91% of the company’s capital, went on to announce the dissolution of LAM’s Board of Directors, and have entrusted its management to a provisional manager committee.

Mabjaia confirmed LAM was in the process of appointing new members and that the company was in the process of reorganisation/restructuring, which will last some time. 

According to an audit conducted by Ernst & Young, LAM’s current debt is close to the equivalent of €22 million.