MAPUTO, Feb. 5 (Xinhua) -- The Mozambican government has approved the sale of 91 percent of the stake in LAM Mozambique Airlines, the national flag carrier, to three state-owned companies for 130 million U.S. dollars.
The announcement was made Tuesday night at a press briefing in Maputo, the capital of Mozambique, by Inocencio Impissa, the spokesperson of the government.
According to him, Cahora Bassa Hydroelectric Plant, Mozambique Ports and Railways, and Mozambican Insurance Company are expected to acquire the stake, while the goal of the sale is to restructure LAM and purchase eight new aircraft.
"The expectation is that these companies, due to their autonomy and management approach closer to the private sector, will implement international business standards," said Impissa.
The spokesperson also said that since the three companies are state-owned, they will continue reporting to the government on progress made in LAM's recovery.
Over the past 10 years, the national airline has faced severe financial difficulties, at times operating with only two aircraft. The crisis was worsened by corruption schemes involving service acquisitions, leading to debt exceeding 230 million U.S. Dollars, according to a report by Mozambique's state news agency AIM. ■
