Mozambique's LAM to establish cargo and MRO divisions

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Mozambican carrier LAM is looking to branch into maintenance and cargo operations, and intends to create a new operator called LAM Cargo.

Speaking to ATI at the AFRAA assembly in Maputo, LAM chief Jose Viegas said: "We would use a small cargo aircraft, perhaps a Boeing 737-300, for cargo operations between Johannesburg and northern Mozambique.

"Today 5% of our turnover is from cargo, but there's potential to grow that."

LAM will also form a 50:50 maintenance joint venture company with 737-200 lessor Celtic Capital in the first quarter of next year.

The new Maputo-based firm, to be named LAM Star Tech, will perform 737-200 C-checks.

It has already secured work from Air Malawi and Air Tanzania. Celtic Capital owns 16 737-200s, including the two operated by LAM.