LAM Mozambique Airlines (TM) has been suspended from the IATA Clearing House (ICH), but not from BSP.
An earlier version of this story was published this morning, saying that LAM had been suspended by BSP. ASATA subsequently sent out a statement saying this was in fact not true and the suspension applied only to the ICH. Travel News apologises for the error.
Otto De Vries, CEO of ASATA said: “ASATA has received direct confirmation from IATA that LAM remains a full participant in BSP and CASS…The airline’s current challenges are limited to its participation in the IATA Clearing House (ICH), a separate matter entirely, which LAM is actively working to resolve.”
"It’s crucial to distinguish between participation in the BSP, which facilitates payment for airline tickets, and the ICH, which manages interline settlements. LAM continues to operate and accept bookings through the BSP."
ASATA advised travel advisors to contact LAM directly or refer to IATA’s official resources for the most up-to-date information regarding the airline’s operational status and ticketing procedures.
Emirates had sent out a notice to the trade on Friday October 18, saying it was terminating its existing interline agreements with LAM due to the suspension, which EK said was caused by LAM‘s failure to pay its debts.
“EK tickets and EMDs issued on/before October 16, 2024, for carriage on TM services on/after the same date, must be rerouted/re-issued onto 4Z (Airlink) / 5Z (Cemair) / ET (Ethiopian Airlines) on an involuntary basis by re-booking in the lowest class available in the same cabin. EK shall be rebooked in the original class only. In case no alternate re-route options are available, a full/partial refund may be offered by waiving all charges,” the circular said.
In September, Mozambican news site, clubofmozambique.com reported that the agreement between LAM and Fly Modern Ark, the South African consultancy appointed to restructure the carrier, had ended. The restructuring began in April 2023. Fly Modern Ark estimated at the time that LAM had debt of around $300 million (R5,28 billion). The end of the contract with FMA came months after the appointment of new LAM Chairman, Americo Muchanga.
