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 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.
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.
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
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.
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
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.
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
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.
What is ACMI leasing? Why is LAM relying on ACMI contracts? What does the government’s intervention involve? What are the main challenges facing LAM? When will the results of the current ACMI tender be known? Sources: ch-aviation, 360 Mozambique
Mozambique’s LAM Airlines Issues International ACMI Tender Amid Critical Restructuring Phase
Background and Historical Context
Operational and Financial Decline
Details of the Current ACMI Tender
Fleet Status and Operational Dependencies
Government Intervention and Ownership Restructuring
Role of International Consultants and Future Prospects
Conclusion
FAQ
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.
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.
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.
LAM faces high debt, a diminished fleet, operational disruptions, management instability, and the need for governance reforms.
The tender is open until August 22, 2025. The outcome will depend on the evaluation of bids and the airline’s ongoing restructuring process.
Photo Credit: Wikimedia Commons – Timo Breidenstein
Aircraft Orders & Deliveries
Aergo Capital Acquires Boeing 737 MAX 8 from Aircastle Leased to WestJet
Aergo Capital acquires a Boeing 737 MAX 8 from Aircastle currently leased to WestJet, highlighting active secondary market demand and expanding Aergo’s aviation portfolio.
This article is based on an official press release from Aergo Capital.
Dublin-based aircraft leasing and asset management platform Aergo Capital has announced the acquisition of one Boeing 737 MAX 8 aircraft from Aircastle. The transaction, announced on December 16, 2025, involves an aircraft bearing Manufacturer Serial Number (MSN) 60513, which is currently on lease to Canadian carrier WestJet.
This acquisition marks a continuation of Aergo Capital’s strategy to invest in modern, fuel-efficient narrowbody aircraft. According to the company’s official statement, the deal underscores the active secondary market for the 737 MAX and strengthens the trading relationship between the two major lessors. The aircraft remains in operation with WestJet, ensuring continuity for the airline while transferring asset ownership to Aergo.
The deal highlights the growing collaboration between Aergo Capital and WestJet, following significant transactions earlier in the operational year. By acquiring this asset, Aergo expands its portfolio of liquid, in-demand aviation assets while Aircastle executes its strategy of active portfolio management.
The specific asset involved in the transaction is a Boeing 737 MAX 8, identified by MSN 60513. Fleet data indicates this aircraft operates under the registration C-GRAX. Originally delivered during the initial rollout phase of the MAX program, the aircraft is approximately eight years old and represents the current generation of Boeing’s narrowbody technology.
Fred Browne, Chief Executive Officer of Aergo Capital, emphasized the importance of the acquisition in strengthening ties with both the seller and the lessee. In a statement regarding the deal, Browne noted:
“We are pleased to complete the acquisition of this Boeing 737 MAX 8 from Aircastle… I also extend my thanks to WestJet for their continued partnership and support.”
On the seller’s side, Aircastle, a Stamford-based lessor owned by Marubeni Corporation and Mizuho Leasing, viewed the sale as a testament to their strong commercial network. Michael Inglese, CEO of Aircastle, commented on the relationship between the firms:
“We value the long-standing trading relationship we have built with Aergo… The acquisition underscores the strong commercial relationship between Aergo and Aircastle.”
This transaction is not an isolated event but rather part of a deepening relationship between Aergo Capital and WestJet. In August 2024, Aergo completed a significant sale-and-leaseback transaction involving eight Boeing 737-800 aircraft with the Canadian airline. That deal marked the first major collaboration between the two entities. The addition of this 737 MAX 8 further cements Aergo’s position as a key partner in WestJet’s fleet financing structure. For Aircastle, the sale aligns with a strategy of capital recycling and portfolio optimization. Trading assets with leases attached is a common practice in the aircraft leasing industry, allowing lessors to manage age profiles and risk exposure. For WestJet, the transaction represents a “backend” change of lessor; the airline retains physical possession and operational control of the aircraft, merely redirecting lease payments to the new owner, Aergo Capital.
The Secondary Market for the MAX 8
The transfer of a Boeing 737 MAX 8 between two major lessors highlights the intense demand for this asset class in the secondary market. With new aircraft production facing documented delays across the industry, “on-lease” assets, aircraft that are already built, certified, and generating revenue, have become premium commodities.
While an eight-year-old airframe might typically be considered approaching mid-life, the 737 MAX 8 remains a current-generation asset offering approximately 14% better fuel efficiency than its predecessors. For lessors like Aergo Capital, acquiring such an asset avoids the long wait times associated with factory order books. For the industry at large, this trade signals that liquidity for the MAX platform remains robust, despite, or perhaps because of, supply chain constraints limiting the delivery of new metal.
Sources:
Aergo Capital Acquires WestJet-Leased Boeing 737 MAX 8 from Aircastle
Transaction Overview and Executive Commentary
Strategic Context and WestJet Partnership
Deepening Ties with WestJet
Asset Liquidity and Market Demand
AirPro News Analysis
Photo Credit: Aergo Capital
Aircraft Orders & Deliveries
Qanot Sharq Receives First Airbus A321XLR in Central Asia
Qanot Sharq becomes Central Asia’s first operator of the Airbus A321XLR, expanding long-haul routes to North America and Asia from Tashkent.
This article is based on an official press release from Airbus and Qanot Sharq.
On December 19, 2025, Qanot Sharq, Uzbekistan’s first private airline, officially took delivery of its first Airbus A321XLR (Extra Long Range) aircraft. The delivery, facilitated through a lease agreement with Air Lease Corporation (ALC), marks a historic milestone for aviation in the region, as Qanot Sharq becomes the launch operator of the A321XLR in Central Asia and the Commonwealth of Independent States (CIS).
This aircraft is the first of four confirmed A321XLR units destined for the carrier. According to the official announcement, the airline intends to utilize the aircraft’s extended range to open new long-haul markets that were previously inaccessible to single-aisle jets, including planned services to North America and East Asia.
The newly delivered A321XLR is powered by CFM International LEAP-1A engines and features a two-class layout designed to balance capacity with passenger comfort on longer sectors. The aircraft accommodates a total of 190 passengers.
In addition to the seating configuration, the aircraft is fitted with Airbus’ “Airspace” cabin interior. Key features include customizable LED lighting, lower cabin altitude settings to reduce jet lag, and XL overhead bins that provide 60% more storage capacity compared to previous generation aircraft.
Nosir Abdugafarov, the owner of Qanot Sharq, emphasized the strategic importance of the delivery in a statement regarding the fleet expansion.
“The A321XLR’s exceptional range and efficiency will allow us to offer greater comfort and convenience while maintaining highly competitive operating economics.”
, Nosir Abdugafarov, Owner of Qanot Sharq
The introduction of the A321XLR allows Qanot Sharq to deploy a narrowbody aircraft on routes typically reserved for widebody jets. With a range of up to 4,700 nautical miles (8,700 km), the airline plans to connect Tashkent with destinations in Europe, Asia, and North America.
According to the airline’s strategic roadmap, the new fleet will support route expansion to Sanya (China) and Busan (South Korea). Furthermore, the airline has explicitly outlined plans to serve New York (JFK) via Budapest. While the A321XLR has impressive range, the distance between Tashkent and New York (approximately 5,500 nm) necessitates a technical stop. Budapest will serve as this intermediate point, potentially allowing the airline to tap into passenger demand between Central Europe and the United States, subject to regulatory approvals. AJ Abedin, Senior Vice President of Marketing at Air Lease Corporation, noted the geographical advantages available to the airline.
“Qanot Sharq is uniquely positioned to unlock the full potential of the A321XLR due to its strategic location in Uzbekistan, bridging Europe and Asia.”
, AJ Abedin, SVP Marketing, Air Lease Corporation
The delivery of the A321XLR signals a distinct shift in the competitive landscape of Uzbek aviation. Until now, long-haul flights from Tashkent,specifically to the United States,have been the exclusive domain of the state-owned flag carrier, Uzbekistan Airways, which utilizes Boeing 787 Dreamliners for non-stop service.
By adopting the A321XLR, Qanot Sharq appears to be pursuing a “long-haul low-cost” hybrid model. The A321XLR burns approximately 30% less fuel per seat than previous-generation aircraft, allowing the private carrier to operate long routes with significantly lower trip costs than its state-owned competitor. While the one-stop service via Budapest will result in a longer total travel time compared to Uzbekistan Airways’ direct flights, the lower operating costs could allow Qanot Sharq to offer more competitive fares, appealing to price-sensitive travelers and labor migrants.
Furthermore, the choice of Budapest as a stopover is strategic. If Qanot Sharq secures “Fifth Freedom” rights,which are currently a subject of regulatory negotiation,it could monetize the empty seats on the Budapest-New York sector, effectively competing in the transatlantic market while serving its primary base in Central Asia.
Sources: Airbus Press Release, Air Lease Corporation
Qanot Sharq Becomes First Central Asian Operator of Airbus A321XLR
Aircraft Configuration and Capabilities
Strategic Network Expansion
AirPro News Analysis: The Long-Haul Low-Cost Shift
Sources
Photo Credit: Airbus
Airlines Strategy
Kenya Airways Plans Secondary Hub in Accra with Project Kifaru
Kenya Airways advances plans for a secondary hub at Accra’s Kotoka Airport, leveraging partnerships and regional aircraft to boost intra-African connectivity.
This article summarizes reporting by AFRAA and official statements from Kenya Airways.
Kenya Airways (KQ) is moving forward with strategic plans to establish a secondary operational hub at Kotoka International Airport (ACC) in Accra, Ghana. According to reporting by the African Airlines Association (AFRAA) and recent company statements, this initiative represents a critical pillar of “Project Kifaru,” the airlines‘s three-year recovery and growth roadmap.
The proposed expansion aims to deepen intra-African connectivity by positioning Accra as a pivotal node for West African operations. Rather than launching a wholly-owned subsidiary, a model that requires heavy capital expenditure, Kenya Airways intends to utilize a partnership-driven approach, leveraging existing relationships with regional carriers to feed long-haul networks.
While the Kenyan government formally requested permission for the hub in May 2025, Kenya Airways CEO Allan Kilavuka confirmed in December 2025 that the plan remains under active study. A final decision on the full execution of the project is expected in 2026.
The core of the Accra strategy involves basing aircraft directly in West Africa to serve high-demand regional routes. According to details emerging from the planning phase, Kenya Airways intends to deploy three Embraer E190-E1 aircraft to Kotoka International Airport. These aircraft will facilitate regional connections, feeding passengers into the carrier’s long-haul network and supporting the logistics needs of the region.
This operational shift marks a departure from the traditional “hub-and-spoke” model centered exclusively on Nairobi. By establishing a presence in Ghana, KQ aims to capture traffic in a market currently dominated by competitors such as Ethiopian Airlines (via its ASKY partner in Lomé) and Air Côte d’Ivoire.
A key component of this strategy is the airline’s collaboration with Ghana-based Africa World Airlines (AWA). Kenya Airways signed a codeshare agreement with AWA in May 2022. This partnership allows KQ to connect passengers from its Nairobi-Accra service to AWA’s domestic and regional network, covering destinations like Kumasi, Takoradi, Lagos, and Abuja.
Industry observers note that this “capital-light” model reduces the financial risks associated with starting a new airline from scratch. Instead of competing directly on every thin route, KQ can rely on AWA to provide feed traffic while focusing its own metal on key trunk routes. The push for a West African hub comes as Kenya Airways navigates a complex financial recovery. The airline reported a significant milestone in the 2024 full financial year, posting an operating profit of Ksh 10.5 billion and a net profit of Ksh 5.4 billion, its first profit in 11 years. This resurgence provided the initial confidence to pursue the growth phase of Project Kifaru.
However, the first half of 2025 presented renewed challenges. The airline reported a Ksh 12.2 billion loss for the period, attributed largely to currency volatility and the grounding of its Boeing 787 fleet due to global spare parts shortages. These financial realities underscore the necessity of the proposed low-capital expansion model in Accra.
The strategy focuses on collaboration with existing African carriers rather than creating a new airline from scratch.
, Summary of Kenya Airways’ strategic approach
The viability of the Accra hub relies heavily on the Single African Air Transport Market (SAATM) and “Fifth Freedom” rights, which allow an airline to fly between two foreign countries. West Africa has been a leader in implementing these protocols, making Accra a legally feasible location for a secondary hub.
Furthermore, the African Continental Free Trade Area (AfCFTA) secretariat is headquartered in Accra. Kenya Airways is positioning itself to support the trade bloc by facilitating the movement of people and cargo between East and West Africa. The airline has already introduced Boeing 737-800 freighters to serve key destinations including Lagos, Dakar, Freetown, and Monrovia.
The decision to delay a final “go/no-go” confirmation until 2026 suggests a prudent approach by Kenya Airways management. While the West African market is lucrative, it is also saturated with aggressive competitors like Air Peace and the well-entrenched ASKY/Ethiopian Airlines alliance. By opting for a partnership model with Africa World Airlines rather than a full subsidiary, KQ avoids the “cash burn” trap that led to the collapse of previous pan-African airline ventures. If successful, this could serve as a blueprint for other mid-sized African carriers looking to expand without overleveraging their balance sheets.
What aircraft will be based in Accra? When will the hub become operational? How does this affect the Nairobi hub?
Kenya Airways Advances Plans for Secondary Hub in Accra Under ‘Project Kifaru’
Operational Strategy: The ‘Mini-Hub’ Model
Partnership with Africa World Airlines
Financial Context and ‘Project Kifaru’
Regulatory Landscape and Competition
AirPro News Analysis
Frequently Asked Questions
Current plans indicate that Kenya Airways intends to base three Embraer E190-E1 aircraft at Kotoka International Airport.
While planning is underway and government requests have been filed, a final decision on full execution is not expected until 2026.
Nairobi (Jomo Kenyatta International Airport) remains the primary hub. The Accra facility is designed as a secondary node to improve regional connectivity and feed traffic back into the global network.
Sources
Photo Credit: Embraer – E190
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