summary
- Boeing is seeking $4.5 million from LAM Mozambique for allegedly late payments on a parts supply contract.
- LAM acknowledged only $729,228 of the debt and offered to pay it in installments, but Boeing rejected the offer.
- The disagreement comes at a difficult time for LAM, which plans to leverage its goodwill with Boeing to procure new aircraft.
Boeing and Mozambique’s flag carrier, Linhas Aéreas de Mozambique (LAM), are at odds over debt related to a parts supply contract from 2014. The US manufacturer claims $4.5 million in debt, but the state-owned company is only aware of $729,000 of it.
Boeing demands $4.5 million payment from LAM
According to the Portuguese press Lusa, Boeing is seeking $4.5 million from LAM Mozambique for allegedly late payments on a parts supply contract signed in 2014. This was communicated through an invoice received by the airline on December 20, 2023 for a contract guaranteeing the carriage of replacement equipment. Repair the Boeing plane. However, LAM has reportedly not paid for the equipment for the past few years.
Photo: Nicola de Corte | Shutterstock
In the invoice, the U.S.-based company charged LAM $3.48 million for certain items and claimed that more than 30 items and parts sent to the southern African country were not returned on time. Or they claim that it wasn’t returned at all. Lusa said this involved transactions from Amsterdam operated by Air France/KLM Royal Dutch Airlines.
LAM recognizes only 16% of debt
From Boeing’s $4.5 million invoice, LAM recognized only $729,228 in late contract rent. The airline offered to pay the debt in installments over a period of time, but Boeing rejected the offer. Lusa reports from another document that Boeing said all goods and equipment provided to LAM have been returned. Mozambique’s Ministry of Transport’s General Inspectorate is aware of the dispute and has convened a meeting with the state company’s management.
Photo: Felix Lipov | Shutterstock
LAM is currently under the control of South Africa’s Fly Modern Arc (FMA), which took over in April 2023 in a bid to revitalize the national airline. Linhas Aéreas de Moçambique has $23.5 million in credits to Boeing from advances made to purchase new aircraft between 2014 and 2019.
The disagreement between the parties comes as FMA plans to use the credit to acquire new aircraft and advance plans to expand its fleet and routes. But Boeing has refused to release the funds and has no intention of using the credits to settle some of the debt on the bill. Boeing declined to comment on the matter.
LAM Mozambique 2023
LAM Mozambique has been a Boeing customer for several years.according to channel airlines, the current fleet consists of one B737-700 and three DHC-8-Q400s. He also has several wet-lease aircraft, including his B777-200ER from Euroatlantic Airlines, which is used for long-haul flights to Lisbon.
Photo: Studio Porto Sabbia | Shutterstock
In 2023, the number of passengers of the state-owned company was approximately 601,467, an increase of 8% compared to the previous year. Regional traffic increased by 48% year-on-year, reaching 111,335 flights compared to 75,481 flights in 2022. Domestic traffic increased by 2% to 490,132 people. The route with the highest number of passengers was Maputo-Beira with 35,352 passengers, followed by Nampula-Maputo with 35,221 passengers, and Beira-Maputo with 35,074 passengers.

LAM Mozambique subsidiary reaches debt agreement with Embraer and resumes operations
One EMB-145 is back in the air, operating several domestic and regional flights.
The current network covers 12 locations in Japan and 6 locations overseas. Last year, LAM launched flights to Lusaka (LUN) via Harare (HRE). In December, flights to Lisbon Airport (LIS) resumed after a 12-year hiatus, and the first flight to Cape Town International Airport (CPT) also began, marking important milestones for the company. Ta.
What do you think about the dispute between Boeing and LAM? Feel free to share your thoughts in the comments!