27 September 2008
Maputo — Mozambique's publicly owned airline, LAM, has reacted to the recent fall in international fuel prices by reducing the prices of tickets for its flights.
According to a LAM press release, received by AIM on Saturday the price reduction is about three per cent on fares for all the company's domestic and regional flights, taking effect as of 25 September.
This is the result of a decision to cut the fuel surcharge demanded of each passenger by 17 per cent (ten US dollars).
"We continue to bank on creating incentives and more attractive prices so that a larger number of people may use the security, punctuality and comfort that LAM offers", said the company's commercial director, Aderito Macaba.
He pointed out that with the slackening of the wild speculation that has characterized the international market in oil, fuel prices have fallen. "So, with a sense of ethics and responsibility, but above all of respect for our clients, LAM is reducing the fuel surcharge by 17 per cent, with a consequent reduction in the price of air tickets", said Macaba.
LAM pointed out that the rise in fuel prices had led to a situation where fuel came to account for about 50 per cent of the operational costs of the company. The release noted that in other parts of the world the fuel crisis had led some companies to bankruptcy, and in other cases to the adoption of such drastic measures as reducing the number of flights and scrapping routes no longer regarded as economic.
At the height of the speculation in oil in June, the price of a barrel of crude reached around 147 US dollars. The latest quote on the New York Mercantile Exchange is just under 107 dollars a barrel.
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