Commercial Aviation
Mozambique LAM Airlines Issues ACMI Tender During Restructuring Phase
LAM Airlines of Mozambique launches tender for five ACMI aircraft amid financial crisis and government-led restructuring efforts.
Mozambique’s LAM Airlines Issues International ACMI Tender Amid Critical Restructuring Phase
Mozambique’s national airline, Linhas Aéreas de Moçambique (LAM), has announced an urgent international tender for five aircraft on short-term wet lease (ACMI) contracts. This move highlights the airline’s ongoing struggle to maintain operations and recover from a severe financial and operational crisis. With an estimated debt burden of around USD 300 million and a fleet reduced to a single operational aircraft, LAM’s situation is emblematic of the broader challenges facing African carriers. The tender, open until August 22, 2025, is part of a wider stabilization plan led by international aviation consultancy Knighthood Global, which has been tasked with implementing emergency measures within three months.
This development comes amid intensified government intervention, including a forensic audit of the airline’s finances over the past decade and the transfer of 91% of LAM’s equity to three state-owned entities. The ACMI tender is a crucial step for LAM to restore basic connectivity and operational reliability, as the airline navigates a complex landscape of regulatory hurdles, supply chain constraints, and limited access to traditional aircraft financing.
The crisis at LAM offers a window into the persistent difficulties encountered by African aviation. Carriers across the continent face high operating costs, aging fleets, and regulatory challenges, often resorting to wet-lease contracts to bridge capacity gaps. LAM’s efforts to stabilize and restructure could serve as a case study for similar airlines in the region.
Background and Historical Context
LAM traces its roots back to 1936, when it was established by the Portuguese colonial government as DETA (Direcção de Exploração de Transportes Aéreos). Initially, the airline operated as a charter service under the Department of Railways, Harbours, and Airways. Regular airmail services began in 1937, with early routes linking Mozambique to South Africa and connecting with Imperial Airways’ services to Europe.
After Mozambique’s independence, DETA was restructured and rebranded as Linhas Aéreas de Moçambique (LAM) in 1980, following allegations of corruption within the original organization. The airline became a limited company in 1998, with the Mozambican state maintaining a controlling 91% stake.
Historically, LAM has played a vital role in Mozambique’s connectivity, serving domestic and regional routes from its Maputo hub and maintaining membership in international aviation associations. The airline has linked Mozambique to major African cities and European destinations, underpinning its strategic importance for the country’s economic development.
Operational and Financial Decline
Despite its historical significance, LAM has faced mounting operational and financial challenges over the past decade. Chronic underinvestment, aging fleet, and frequent management changes have undermined the airline’s performance. Notably, the fleet has shrunk to a single active De Havilland Canada DHC-8-Q400, forcing LAM to rely on expensive ACMI contracts for basic route coverage.
The airline’s financial data underscores the depth of the crisis. In the first half of 2024, LAM reported revenues of MZN 3.7 billion (approximately USD 57.8 million) and transported 330,000 passengers, falling short of its 500,000 target. While domestic passenger numbers showed some resilience, overall growth projections remain highly uncertain.
Management instability has further complicated recovery efforts. High turnover at the senior level has hindered the development and implementation of long-term strategies, while persistent operational issues, such as flight cancellations and delays, have eroded customer confidence.
“LAM’s operational continuity currently depends entirely on a complex web of wet-lease arrangements with multiple international operators,” ch-aviation
Details of the Current ACMI Tender
The international tender for five ACMI aircraft is a central pillar of LAM’s emergency stabilization strategy, overseen by Knighthood Global. The tender (MZ-LAM-B-P009-CP-2025) specifies rigorous eligibility requirements, including a preference for IOSA-registered operators and comprehensive documentation on financial and regulatory compliance.
Prospective bidders must prove they have not engaged in fraudulent activities, are not blacklisted, and have no conflicts of interest. Financial statements for the past three years and references from at least three previous clients are required. The tender process is open to both domestic and international companies, with electronic submissions due by August 22, 2025.
ACMI (Aircraft, Crew, Maintenance, and Insurance) contracts differ from traditional leasing by providing a turnkey operational solution. This model is essential for LAM, which currently lacks the in-house capacity to operate additional aircraft due to shortages of trained crew, maintenance capabilities, and insurance coverage.
Fleet Status and Operational Dependencies
LAM’s current fleet composition is a stark indicator of its operational challenges. With only one owned aircraft in service, the airline relies on wet-leased aircraft from international operators, such as Via Air RCA (Boeing 737-500) and CemAir (Bombardier CRJ900LR), to maintain core domestic and regional routes.
Two additional leased Q400s remain out of service, one undergoing maintenance and the other in storage. These grounded aircraft add to the airline’s financial pressures, as they represent both lost capacity and ongoing lease obligations.
Historically, LAM operated a more diverse fleet, including Boeing 737s and Embraer 190s. Ambitious expansion plans, such as a 2014 order for three Boeing 737-700s, were ultimately abandoned due to financial constraints. The contrast between past expansion efforts and the current reality highlights the severity of the airline’s decline.
“The current wet-lease arrangements, while providing essential operational continuity, create significant financial pressures that compound LAM’s underlying challenges,” ch-aviation
Government Intervention and Ownership Restructuring
In response to LAM’s deepening crisis, the Mozambican government has taken unprecedented steps to rescue the airline. In early 2025, it transferred 91% of LAM’s equity to three state-owned firms: Hidroeléctrica de Cahora Bassa, Portos e Caminhos de Ferro de Moçambique, and Empresa Moçambicana de Seguros. This move is intended to stabilize LAM’s finances and provide a foundation for long-term recovery.
A forensic audit covering the past decade is underway, with results expected by October 2025. The audit aims to uncover the root causes of LAM’s financial woes and to inform future governance reforms. The government has also replaced the airline’s management, appointing a new commission led by Dane Kondic and engaging Knighthood Global to oversee the restructuring.
Previous attempts at turnaround, such as a February 2025 tender for seven aircraft, were marred by corruption allegations and ultimately cancelled. The current rescue plan reflects a recognition that both financial support and strong governance are necessary to restore LAM’s viability.
Role of International Consultants and Future Prospects
Knighthood Global, an Abu Dhabi-based consultancy, brings extensive experience in airline restructuring, including recent involvement in Air Malta’s transition and advisory roles with other international carriers. Their appointment signals a shift toward leveraging global expertise to address LAM’s complex challenges.
The consultant’s immediate mandate is to implement stabilization measures within three months, focusing on restoring operational reliability and preparing LAM for a more sustainable future. The involvement of international experts reflects a broader trend among African airlines seeking external support to overcome structural barriers.
The success of this intervention will depend on the government’s commitment to governance reforms, the effectiveness of the new management team, and the airline’s ability to secure reliable ACMI partners through the current tender process.
“The restructuring effort occurs within the context of broader Mozambican economic development priorities, particularly the expansion of energy, oil, and gas megaprojects that require reliable aviation connectivity,” ch-aviation
Conclusion
The international ACMI tender marks a pivotal moment in LAM’s recovery efforts. The airline’s reliance on wet-leased aircraft is a short-term solution to severe operational constraints, but long-term viability will require deeper financial restructuring, governance reforms, and investment in fleet renewal. The involvement of global consultants and increased government oversight represent important steps toward restoring stability.
LAM’s experience underscores the broader challenges facing African aviation, from limited access to capital to regulatory and operational complexities. The outcome of this restructuring process will not only determine LAM’s future but may also offer valuable lessons for other struggling carriers across the continent.
FAQ
What is ACMI leasing?
ACMI stands for Aircraft, Crew, Maintenance, and Insurance. In this arrangement, the lessor provides a fully operational aircraft, including crew and maintenance, while the lessee (in this case, LAM) pays for the hours flown and covers certain operational costs like fuel and airport fees.
Why is LAM relying on ACMI contracts?
Due to a severely reduced fleet and lack of in-house capacity, LAM uses ACMI leases to maintain essential routes while it addresses deeper financial and operational challenges.
What does the government’s intervention involve?
The Mozambican government has transferred most of LAM’s equity to state-owned entities, launched a forensic audit, replaced senior management, and engaged international consultants to oversee restructuring.
What are the main challenges facing LAM?
LAM faces high debt, a diminished fleet, operational disruptions, management instability, and the need for governance reforms.
When will the results of the current ACMI tender be known?
The tender is open until August 22, 2025. The outcome will depend on the evaluation of bids and the airline’s ongoing restructuring process.
Sources: ch-aviation, 360 Mozambique
Photo Credit: Wikimedia Commons – Timo Breidenstein
Aircraft Orders & Deliveries
Azorra Orders Up to 30 Embraer E-Freighters at Farnborough
Azorra commits to 20 firm E-Freighter orders and 10 options at Farnborough 2026, entering the dedicated cargo leasing market.
Florida-based aircraft lessor Azorra has committed to up to 30 Embraer E-Freighters, marking the company’s entry into the dedicated cargo-aircraft leasing market and providing a substantial backlog boost for the Brazilian manufacturer’s passenger-to-freighter conversion program.
Announced on July 21, 2026, during the Farnborough International Airshow in the United Kingdom, the agreement encompasses 20 firm orders and 10 purchase rights. Embraer detailed the transaction in a press release, noting the converted regional jets are targeted at the growing express cargo sector as replacements for aging narrowbody aircraft.
Azorra expands Embraer portfolio into cargo
The freighter agreement builds on an established relationship between the two companies. Azorra recently increased its commitment to the E2 passenger family with a firm order for 15 Embraer E195-E2 aircraft in June 2026. The lessor now holds commitments for 54 Embraer E2 jets alongside the newly announced cargo platforms.
Azorra Chief Executive Officer John Evans highlighted the operational economics and environmental compliance of the converted aircraft as key factors in the acquisition.
“The E-Jet Freighter is an ideal replacement for older 737 freighters, offering reliable, Stage 4 noise-compliant operations and, with Azorra’s CF34 engine program, unmatched operating costs,” Evans said. “We are proud to deepen our long-standing partnership with Embraer and look forward to helping bring the E-Freighter to operators worldwide.”
Embraer Commercial Aviation President and Chief Executive Officer Arjan Meijer characterized the agreement as a strong endorsement of the E-Freighter program, reflecting a broader industry demand for efficient, right-sized cargo solutions.
E-Freighter specifications and market positioning
Embraer launched its in-house passenger-to-freighter (P2F) conversion program in 2022 to address a specific payload and range gap in the air cargo market. The manufacturer designed the E190F and E195F to sit between large turboprop freighters and traditional narrowbody aircraft like the Boeing 737.
According to Embraer, the converted E-Jets provide approximately 40 percent more cargo volume than large turboprop freighters and roughly three times the range. The E190F, which successfully entered commercial service in March 2026, offers over 100 cubic meters of cargo volume and a payload capacity of 13.5 tonnes.
Carlos Naufel, President and Chief Executive Officer of Embraer Services & Support, stated that the E-Freighter combines the proven reliability of the E-Jets platform with the manufacturer’s comprehensive support structure to maximize aircraft availability from the first day of operations.
The Azorra deal was part of a broader sales campaign for Embraer at the July 2026 Farnborough International Airshow, where the manufacturer also secured 30 regional jet orders across four passenger airlines.
AirPro News analysis
We view Azorra’s commitment as a critical validation of Embraer’s P2F strategy. The express cargo market has structurally shifted since 2020, with e-commerce driving demand for decentralized, high-frequency deliveries. Traditional narrowbodies like the Boeing 737-800BCF are often too large and expensive to operate profitably on secondary routes, while turboprops lack the range and volume required by major logistics networks. By securing a prominent lessor like Azorra, Embraer ensures the E-Freighter will be accessible to smaller cargo operators who rely on leased airframes rather than direct capital purchases.
Sources: Embraer
Photo Credit: Embraer
Commercial Aviation
Qantas A350-1000ULR Completes 19-Hour Test Flight to Melbourne
Qantas Project Sunrise test aircraft lands in Melbourne after a 19-hour non-stop flight from Toulouse, ahead of 2027 commercial launch.
The first Airbus A350-1000ULR test aircraft destined for Qantas Airways Limited (QF) touched down in Melbourne, Australia, on July 24, 2026, completing a 19-hour, 11-minute non-stop flight from Toulouse, France. The 17,000-kilometer journey marks a critical certification milestone for the manufacturer’s ultra-long-range platform, which is custom-designed to operate the world’s longest commercial routes under the airline’s Project Sunrise initiative.
In a press release issued on July 24, 2026, Qantas confirmed the successful arrival of the test aircraft, which departed the Airbus SE manufacturing facility in France on July 23, 2026, at 07:33 local time and arrived in Melbourne at 10:46 local time. The flight serves as a practical demonstration of the aircraft’s redesigned fuel system and endurance capabilities ahead of the planned October 2027 launch of non-stop commercial services connecting Sydney to London and New York.
Certification and flight test parameters
The test flight was operated by a crew of nine, consisting of four Airbus flight test pilots and five flight test engineers. According to reporting by Air Data News, the aircraft reached a maximum altitude of 41,000 feet during the journey. The airframe has been undergoing a 75-to-80-hour certification campaign since completing a three-hour, 43-minute maiden flight on June 2, 2026.
The ultra-long-haul operation generated significant public interest. The Guardian reported that 67,000 people tracked the aircraft via Flightradar24, making it the most-watched flight globally on the morning of July 24, 2026. The aircraft is scheduled to operate a return flight to Toulouse on July 27, 2026, with two Qantas pilots joining the Airbus flight test crew.
Operating flights approaching 20 hours introduces distinct physiological challenges for both crew and passengers. Qantas Chief Technical Pilot Alex Passerini acknowledged the human endurance factor inherent in such operations, noting to The Guardian that on flights of this duration, “Everyone’s going to get tired.”
Technical specifications and Project Sunrise timeline
To achieve the range required for Project Sunrise, the Airbus A350-1000ULR features a 20,000-litre additional rear center fuel tank. This modification enables the aircraft to fly commercially non-stop for up to 22 hours. To accommodate the extreme duration and manage weight, Qantas has configured the cabin with 238 seats across four classes. This represents a significant reduction from the 300-plus seats typical on standard Airbus A350-1000 models.
Qantas has ordered 12 of the ultra-long-range aircraft. The test aircraft that operated the Melbourne flight is not yet painted in the Qantas livery. The first production airframe destined for the airline, named “Vega,” is currently on the Airbus final assembly line and is expected to be delivered in April 2027.
The airline anticipates that the direct Sydney to London route will save passengers approximately four hours of travel time compared to the fastest one-stop services currently available. Tickets for the initial Project Sunrise flights are scheduled to go on sale in February 2027.
AirPro News analysis
The successful 19-hour test flight from Toulouse to Melbourne provides tangible evidence that the technical hurdles of Project Sunrise are largely resolved. We view the integration and certification of the 20,000-litre auxiliary fuel tank as the critical enabler for this platform, shifting the primary operational challenge from aircraft range to human endurance and regulatory fatigue management. While the hardware appears on track for the April 2027 delivery target, the commercial viability of the low-density 238-seat configuration will depend heavily on sustained premium demand to offset the payload penalty inherent in ultra-long-haul operations.
Sources: Qantas Airways Limited
Photo Credit: Qantas Airways Limited
Aircraft Orders & Deliveries
Abra Group Orders Up to 45 Embraer E195-E2 Aircraft
Abra Group signs deal for up to 45 E195-E2 jets, becoming the 25th global E2 operator with first delivery in Q4 2027.
Abra Group has finalized an agreement with Embraer to acquire up to 45 E195-E2 aircraft, securing next-generation narrowbody capacity for the parent company of Avianca and Gol Linhas Aéreas Inteligentes. The transaction introduces Abra Group as a new customer for the E2 program and expands the manufacturer’s footprint in the Latin American market.
Announced in a press release on July 21, 2026, during the Farnborough International Airshow, the deal positions Abra Group as the 25th global operator of the E2 family. Embraer expects to deliver the first aircraft to the airline group in the fourth quarter of 2027.
Order Breakdown and Fleet Integration
The agreement consists of 20 firm orders, 10 purchase options, and 15 purchase rights. Abra Group plans to utilize the Pratt & Whitney GTF-powered aircraft to match capacity with demand across its pan-Latin American network. The company stated the fleet addition will enable the opening of new markets and the deployment of higher flight frequencies on existing routes.
“The E195-E2 will provide Abra with flexibility to pursue new opportunities as part of our disciplined approach to fleet deployment, and delivering greater value when and where our customers need it most,” said Adrian Neuhauser, CEO of Abra Group. “This agreement reflects our commitment to continue investing in efficient, next-generation aircraft as we expand connectivity and strengthen our network across the region and domestically.”
The E195-E2 is the largest variant in the E-Jet E2 family, designed to offer lower fuel burn and reduced emissions compared to previous-generation regional jets. The aircraft will slot into the Abra Group fleet alongside larger narrowbody aircraft currently operated by Avianca and Gol.
Embraer’s Farnborough Momentum
The Abra Group commitment anchored a strong showing for Embraer at the Farnborough International Airshow. According to reporting by Aviation Week, the Brazilian manufacturer announced a total of 30 firm passenger E-Jet orders on July 21, 2026.
In addition to the 20 firm aircraft for Abra Group, Embraer secured orders for five aircraft from Binter Canarias, three from Luxair, and two from Fuji Dream Airlines. Arjan Meijer, President and CEO of Embraer Commercial Aviation, highlighted the significance of the Abra deal for the program’s global footprint.
“We are proud to support Abra Group in its growth journey with the E195-E2, one of the most efficient and environmentally friendly single-aisle aircraft available today,” Meijer stated in the press release. He later noted to Aviation Week that the E2 operator count to 25 worldwide.
Strategic Partnerships and Global Connectivity
The Embraer order was not the only major strategic move Abra Group executed at the airshow. On July 21, 2026, the company also signed a Memorandum of Understanding (MoU) with Etihad Airways. Aviation Week reported that the partnership aims to strengthen connectivity between Latin America, the Middle East, and Asia.
AirPro News analysis
We view the simultaneous announcements of the Embraer fleet expansion and the Etihad Airways partnership as a coordinated strategy by Abra Group to consolidate its market position. By acquiring the E195-E2, Abra secures an optimized platform to feed regional traffic into major international hubs. This narrowbody efficiency will be critical for supporting the long-haul connectivity envisioned in the Etihad agreement, allowing Avianca and Gol to efficiently aggregate passenger volume from secondary Latin American markets to support intercontinental routes.
Sources: Embraer
Photo Credit: Embraer
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