Mozambique's LAM Requests Five Aircraft on ACMI Lease

Mozambique’s LAM Seeks Five Aircraft on ACMI Lease Amid Market Pressures

Tender Announcement and Requirements

Linhas Aéreas de Moçambique (LAM), the national carrier of Mozambique, has initiated an international tender for the short-term wet lease of five aircraft. This strategic move aims to bolster operational efficiency and improve service quality across its domestic and regional routes. The tender forms part of LAM’s broader investment plan as the airline undergoes restructuring and contends with increasing competition in the South Atlantic aviation market.

LAM has outlined stringent eligibility criteria for applicants, with a preference for IOSA-registered operators. Prospective bidders must provide declarations confirming no involvement in fraud, absence of conflicts of interest, and assurance that their capital is not sourced from illegal activities. Additionally, applicants are required to submit financial statements covering the past three years, evidence of regulatory compliance, and references from at least three clients for similar services rendered within the last five years. The tender is open to both local and international companies, with electronic submissions due by 1500L (1300Z) on August 22, 2025. Request for proposal documents are available upon request via email.

Context of Financial and Operational Challenges

LAM’s tender emerges amid heightened scrutiny of the airline’s financial health and operational performance. Currently overseen by the international consultancy Knighthood Global, LAM is engaged in significant restructuring efforts. In June, Knighthood Global issued a separate tender seeking five Boeing 737-700 aircraft through purchase, finance lease, or operating lease arrangements to address ongoing capacity shortages. This earlier tender specified mid-life jets with recent D-check maintenance, dual-class seating for 120 to 140 passengers, ETOPS 120 certification, and approvals from both EASA and FAA, with staged delivery expected by October 2025. No results have been announced following the June 20 deadline for proposals.

The leasing initiative coincides with intensifying competition in the region, as noted by Aviation Week Network. Rival airlines may respond by upgrading their fleets or negotiating more advantageous terms with lessors, thereby escalating competitive pressures. These developments reflect broader industry challenges, including concerns raised by manufacturers such as Embraer regarding tariffs and cost pressures, highlighting the critical importance of cost management and strategic partnerships for airline survival.

Government Intervention and Fleet Status

The Mozambican government has launched a forensic audit into LAM’s financial records spanning the past decade, with findings expected by October. Earlier this year, the government transferred 91% of LAM’s equity to three state-owned entities in an effort to rescue the heavily indebted flag carrier. Previous tenders, including a February call for seven aircraft, were cancelled amid allegations of corruption.

Currently, LAM’s owned fleet has been reduced to a single De Havilland Canada DHC-8-Q400, according to ch-aviation and ADS-B data. The airline relies extensively on wet-leased aircraft, including a Boeing 737-500 operated by Via Air RCA and a Bombardier CRJ900LR from CemAir, which service domestic routes and the airline’s sole remaining regional connection to Johannesburg. Two additional leased Q400s are currently out of service, with one undergoing maintenance and the other in storage.

As LAM pursues additional capacity through ACMI leases, its ability to overcome financial difficulties and navigate a competitive market environment will remain under close observation by industry stakeholders.