The Bilateral Air Service Agreements (BASAs) between Portugal and Mozambique reserve the Lisbon to Maputo route to two airlines – TAP and LAM (that had an operating agreement with Air Luxor during 2005). An assessment of the broader impact of the regulatory structure of international air traffic . This section focuses on the air transport constraints between Lisbon and Maputo. 



International airline tickets account for about 30% of total tourist travel expenditure. Portuguese tour operators currently purchase an international air ticket from Lisbon to Maputo at a negotiated price of about €600 (so called tour-based fares). They could only obtain this price by making special reservation arrangements for 90 seats on the weekly Lisbon-Maputo flight operated by Air Luxor for LAM46. Portuguese tour operators are now in the process of negotiating a new arrangement with TAP. 


 There are expressed concerns that the negotiations may end in higher air fares which may pose a major impediment to the competitiveness of Mozambique travel packages sold in the Portuguese market.  The use of charter flights, which may reduce costs of air fares and allow tour operators to manage their costs and pricing strategies more efficiently, has not been exploited on the Lisbon to Maputo route because the BASA between Mozambique and Portugal does not allow for such opportunities. The Mozambique Civil Aviation Authority has been slow to allow charters.


It uses a very strict definition. In contrast, competing countries like Brazil have a more liberal interpretation and in many origin countries, charter flights are taking on the guise of scheduled flights – e.g. Thomas Cook Air in the UK and Corsair in France are examples. As a result tour operators have been able to feature comparable travel packages in Brazil for as low as €400 compared to €699 in Mozambique.  Also, in more mature transport and tourism industries, air transport is seen as an integral part of a supply chain involving tour operators and accommodation providers.


 Tour operators marketing destinations not only get highly discounted tour-based fares from airlines48, they also share up-to-date information, and develop integrated promotional and marketing campaigns that influence tourist demand towards the destination (e.g. through invitation to journalists, familiarization (FAM) tours, and so on). This level of co-ordination currently does not exist in Mozambique and its absence is severely hampering product and market development.


In terms of time and convenience (the size of Mozambique) air transport is advantageous over other transport modes for traveling within Mozambique. Domestic air transport fares from Maputo to Vilanculos account for up to 10% of tourist travel expenditure (i.e. €200). Also tourists pay about €15049 in airport taxes and frontier service charges at both origin and destination countries.  


Launched in July 2004, Air Corridor improved flight scheduling and overall air access to this destination and introduced more aggressive pricing and competitive services. STA, Trans Airways, and other small carriers also began domestic services in 2004/5. LAM has responded to increased competition with marketing campaigns, new flights, and a series of promotions that have reduced air fares by about 50%.50 However, the quality of service and perception of safety of these airlines still appears to be low for international leisure and business travelers – especially the upscale market. Staffs of the US Embassy, for instance, do not fly Air Corridor due to safety and quality concerns. Similarly, LAM was blacklisted as a result of safety concerns for its subsidiary Tran Airways in 2005, but this issue has now been resolved.


The airport infrastructure and facilities in Vilanculos also affect domestic flight quality, costs and time. The length and strength of the runway in Vilanculos is insufficient to accommodate anything but turbo-propelled aircrafts.  It cannot accommodate jet planes. This increases flight cost per kilometer because it limits the maximum weight the aircraft can carry to about 23 seats. Also it increases flight time by an additional 45 minutes plus the level of comfort and service in flight are not good. 


The airport also lacks the navigational and other equipment for night landing, which has serious ramifications for service delivery. Even small delays may result in cancellations because the time window for landing in Vilanculos is so small.  Consequently tourists are forced to spend a night in Maputo, regardless of they wish to do so. 


As a result Portuguese tour operators are only selling tours to Vilanculos-Bazaruto with an overnight stay in Maputo. Mozambique’s capital expenditure for expanding airport infrastructure, maintenance and services is the least among competing countries in the Portuguese market– even lower than the average for airports in Africa. This may also be due to the fact that the scale of operations and movement of international passenger traffic through Mozambique is still very limited.


promoting and marketing Mozambican products. Bazaruto packages are priced at €1,490, which is only about 17% less than the published prices (€1,794) an independent traveler will pay for the same trip. This bandwidth is generally more flexible than what is obtainable by tour operators marketing competing destinations. In these destinations, tour operators can package their products at cheaper costs, sell a lot cheaper and vary prices accordingly to simulate demand. The limited availability of flights, in-flexible pricing limits, and low demand generally are important factors that limit the ability to package tours competitively within a flexible bandwidth.  

Sales are mainly demand-driven and demand is weak due, in part, to a relatively poor image in the Portuguese market. Portuguese are well-informed on current issues in Mozambique, often focused on floods, diseases and droughts. In choosing a destination for leisure, the poor image of Mozambique projected in the Portuguese market works against the decision of the average tourist to visit the country. Tour operators are unable to engage in marketing to address these issues, and current marketing strategies of destination management organizations in Mozambique have not been very effective.