December 23, 2009
"This investment... reaffirms our commitment to the development of commercial aviation in Latin America as well as to the socio-economic growth of countries in the region," -- Ignacio Cueto, President LAN.
Chile's flagship airline LAN said on Wednesday it has signed a contract to buy 30 Airbus A320 short-haul planes worth around USD$1.97 billion as part of its fleet renewal.
LAN, one of the biggest carriers in Latin America, said in a statement the new planes would be incorporated into its fleet between 2011 and 2016.
"This investment ensures the future growth of the company and reaffirms our commitment to the development of commercial aviation in Latin America as well as to the socio-economic growth of countries in the region," Ignacio Cueto, LAN's president and chief operating officer, said in a statement.
LAN said it would also sell five Airbus A318 planes during 2011 as part of its fleet upgrade programme.
LAN accounts for more than one-half of Chile's international passenger traffic and nearly three-quarters of its domestic traffic. Headquartered in Santiago, LAN also operates in Argentina, Brazil, Colombia, Ecuador and Peru.
Cueto said last month that LAN expects passenger growth of around 10 percent in 2010, similar to this year, and said the company was studying whether to increase investment of USD$1.4 billion earmarked for 2009-2011 as the global economy showed signs of recovery.
In October, LAN reported a 37 percent drop in third-quarter earnings from the same quarter in 2008, citing losses from fuel hedging contracts, though the result was an improvement on the immediately prior second quarter.
Airbus had 194 net new orders in the year to end-November, while Boeing had 101 net orders in that period.
Airbus sales chief John Leahy said at the Dubai air show in mid-November he maintained a sales forecast for 300 planes in 2009.
Before cancellations, the Airbus gross new orders to end-November totalled 225 planes. It has since won a deal for 25 planes from United Airlines, which with the 30 being purchased by LAN takes Airbus to just 20 planes short of the target.
(Reuters)
"This investment... reaffirms our commitment to the development of commercial aviation in Latin America as well as to the socio-economic growth of countries in the region," -- Ignacio Cueto, President LAN.
Chile's flagship airline LAN said on Wednesday it has signed a contract to buy 30 Airbus A320 short-haul planes worth around USD$1.97 billion as part of its fleet renewal.
LAN, one of the biggest carriers in Latin America, said in a statement the new planes would be incorporated into its fleet between 2011 and 2016.
"This investment ensures the future growth of the company and reaffirms our commitment to the development of commercial aviation in Latin America as well as to the socio-economic growth of countries in the region," Ignacio Cueto, LAN's president and chief operating officer, said in a statement.
LAN said it would also sell five Airbus A318 planes during 2011 as part of its fleet upgrade programme.
LAN accounts for more than one-half of Chile's international passenger traffic and nearly three-quarters of its domestic traffic. Headquartered in Santiago, LAN also operates in Argentina, Brazil, Colombia, Ecuador and Peru.
Cueto said last month that LAN expects passenger growth of around 10 percent in 2010, similar to this year, and said the company was studying whether to increase investment of USD$1.4 billion earmarked for 2009-2011 as the global economy showed signs of recovery.
In October, LAN reported a 37 percent drop in third-quarter earnings from the same quarter in 2008, citing losses from fuel hedging contracts, though the result was an improvement on the immediately prior second quarter.
Airbus had 194 net new orders in the year to end-November, while Boeing had 101 net orders in that period.
Airbus sales chief John Leahy said at the Dubai air show in mid-November he maintained a sales forecast for 300 planes in 2009.
Before cancellations, the Airbus gross new orders to end-November totalled 225 planes. It has since won a deal for 25 planes from United Airlines, which with the 30 being purchased by LAN takes Airbus to just 20 planes short of the target.
(Reuters)