The Center for Public Integrity (CIP) said yesterday that the stoppage of the four aircraft operated by Mozambique Airlines (LAM) is the result of the "alarming situation" in which the company finds itself.

On Monday, the state-owned carrier announced in a statement that its four aircraft were "unavailable" due to the need for "maintenance", a situation which led to the "rescheduling of flights".

In an analysis of the context that LAM is going through, CIP believes that the company is facing an "alarming situation" in which it is not generating profits commensurate with maintaining its operational capacity.

"With an operating cost structure that exceeds its capacity to generate gross profit, the deficit between gross profit and operating costs for 2021 was estimated at 424 million meticais," the analysis states.

"LAM is unable to operate in the airspace due to the lack of sufficient aircraft for this purpose, combined with poor investment and maintenance, despite numerous financial bailouts by the state for the company," the document reads.

To maintain the activity, the carrier has to lease aircraft, which can make the company's costs more expensive for the state, it adds.

Another reason that has contributed to LAM's failure is the lack of "a framework guiding salary policies for board members".

The gap is common to the state business sector, allowing companies with negative net results to have a heavy salary structure, says the NGO.

The CIP emphasizes that LAM constitutes a risk to public finances, as it systematically causes losses for the state.

Last month, the Minister of Transport and Communications, Mateus Magala, expressed optimism in parliament that the company would recover in the short and medium term, considering that it had already begun to clean up its accounts.