The general manager of Mozambique
Airlines (LAM), Joao Carlos Jorge, on Friday declared that the company is ready
to compete with Ethiopian Airlines on Mozambican domestic routes. Ethiopian has
set up a Mozambican subsidiary, Ethiopian Mozambique Airlines, which will begin
flying on 1 December. It plans to serve Maputo, Nampula, Tete, Pemba, Beira,
Nacala, Quelimane and Chimoio. A press release from the new company declared
that it “will promote necessary and better air connections in Mozambique, and
to and from Mozambique”.
Tewolde Gebremariam, the Chief
Executive Officer of Ethiopian Airlines, said “The launch of Ethiopian
Mozambique Airlines is part of our strategic vision for multiple hubs in
Africa, and to increase air connections in our vast continent in order to
support its socio-economic transformations”.
He promised that the travelling
public in Mozambique “will enjoy safe, reliable, accessible and convenient
connections”.
The CEO of Ethiopian Mozambique
Airlines, Redi Yesuf, said the company would gradually introduce three hubs in
northern, central and southern Mozambique. “Mozambique is a very large country,
and it deserves strong options of air connections as an alternative to land
transport”, he said.
The Mozambican authorities have
liberalised the aviation market, abolishing the effective monopoly on domestic
routes that LAM once enjoyed. In September 2017, the regulatory body, the
Mozambique Civil Aviation Institute (IACM), authorised seven foreign companies,
and five Mozambican companies to fly the domestic routes. The first to offer
competition with LAM was the UK-based company Fastjet, and Ethiopian Airlines
will be the second.
Joao Jorge was confident that LAM
can cope with the competition. He said that LAM has greatly improved its services
and in October 90 per cent of its flights were on time. “There were
difficulties up until July”, he said. “It was necessary to re-programme flights
and there were some cancellations. But as from the third week of August we
began to fight for improvements.” The performance was better in September and
in October 90 per cent of LAM flights were on time.
The European Union had taken
Mozambique off the black list of countries whose air companies are not allowed
to fly in European airspace, LAM had all the necessary certifications “and
there is every reason for clients to fly with us”, declared Joao Jorge, “and
that’s beginning to happen with the case, for example, of the petroleum
logistics companies”.
Jorge said LAM is gradually
clearing a debt of 230 million meticais (about 3.77 million US dollars) to the
banks and to its suppliers, but it must still pay for its fuel immediately, and
cannot run up fuel bills.Ethiopian has not yet announced a timetable for its
Mozambican flights, or how much tickets will cost. The LAM trade union committee has
protested against the entry of Ethiopian Airlines into the Mozambican market.
In a statement issued on Friday it claimed that it is illegal to licence the
company to fly domestic outs, and that this is an attack on “national
sovereignty”.The union’s protest comes very
late – since Ethiopian Airlines was authorised to fly inside Mozambique in
September 2017. The union statement claimed, quite untruthfully, that this is
the only case in the world where a foreign airline is allowed to fly between
two cities in a different country. It added that the new company will only be
interested in making a profit, and this would amount to “looting our national
resources”. It would not serve the interests of the Mozambican economy, but was
part of a “plan of predatory expansion” to strengthen the Ethiopian economy.The
union demanded respect for Mozambican law, the safeguarding of national
interests and the protection of jobs at LAM.
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