EuroAtlantic Airways (EAA) announced yesterday that it has terminated its contract with the national airline, Linhas Aéreas de Moçambique (LAM), due to the latter's failure to honor its commitments.

To operate flights from Maputo (Mozambique) to Lisbon (Portugal), LAM used the wet-leasing and CHARTER FLIGHTS of the EAA.

O wet-leasing is the provision of the entire package required for the flight, including the aircraft and on-board staff, without the company purchasing the service, in this case LAM, intervening. However, the latter must pay for this service.

The CHARTER FLIGHTS are private flights that follow the client's exclusive schedule and needs.

In a statement, EAA said that the termination of the contract is immediate. It claims to have been surprised by the unilateral suspension of flights, when the decision was made on February 11.

The company also says that it will maintain "its commitment to protecting its commercial interests and will take all necessary legal and commercial measures to ensure an orderly conclusion to the current contract".

LAM has accumulated losses of around 21.3 million dollars. However, EAA firmly believes that LAM will honor its "substantial debts". (Source: Negócios)