Maputo — Maputo, 30 Jan (AIM) - The government will announce, by March this year, the future of Mozambique Airlines (LAM), as part of the introduction of deep reforms aimed at giving the company greater financial and operational sustainability, Transport Minister Mateus Magala declared on Friday.

Speaking during a visit to the premises of LAM and of the Mozambican Airport Company (ADM), Magala said he is analysing a report surveying the problems facing the company.

"The report was given to me in December", he said, "and now it is being revised, re-assessed and validated. I think that by March we will be able to take a decision about the future of LAM." But he declined to be specific about the types of restructuring being considered.

"I can't say that we are going to privatise or socialise the company", Magala said. "What I can guarantee is that we are engaging top people, not just from the region, but from all corners of the world, in questions of aviation and of reforms, and from this involvement, we hope to obtain a sustainable solution for LAM".

"All options are on the table", he added, "and nothing is under the table. We shall look at the options from a business point of view, but also with the political and social context that we want".

Before any thorough reform was agreed, Magala wanted to see the LAM management take short term actions to increase the sales of tickets, including by reducing their prices. He urged LAM "to make a rapid study to determine how many people would like to travel by plane, if the price were ten or 20 per cent cheaper".

The LAM General Manager, Joao Po Jorge, said the company is assessing all the scenarios which would lead to reducing costs and offering cheaper tickets, including automation and acquiring planes that can accommodate more passengers (but this would mean lengthening runways at some Mozambican airports).