Chile’s flag air carrier Lan Airlines S.A. and its subsidiaries, one of the leading airlines in Latin America, announced Tuesday an agreement for the purchase of 50 modern Airbus A320 family aircraft to be delivered between 2012 and 2016.
The new aircraft will operate regional and domestic flights within Latin America. This order includes Airbus A319s and A320s, as well as, for the first time, the Airbus A321 which has a capacity for approximately 210 passengers.
The order is valued at approximately 4,150 billion USD according to list prices. Additionally, Lan’s strategic fleet renewal plan now involves the sale of its 15 Airbus A318s between 2011 and 2013. Lan also announced it has ordered CFM56-5B engines to power its Airbus A320 family fleet deliveries starting in 2011.
According to a release from the company “the incorporation of the new Airbus A320 family airplanes reflects Lan’s strong commitment to the environment as these aircraft incorporate the industry's latest technology and are highly efficient in fuel consumption, allowing for a substantial reduction in emissions, while also decreasing noise levels”.
We confirm our commitment to the development of commercial aviation in Latin America, incorporating the best technology and offering our clients one of the world's most modern fleets. We continue investing in order to contribute to the economic growth and social development of countries in the region said Ignacio Cueto, Lan’s Chief Operating Officer.
Lan Airlines is one of the leading passenger and cargo airlines in Latin America and with its affiliates serves over 70 destinations around the world through an extensive network that offers full connectivity within Latin America, while also linking the region with North America, Europe and the South Pacific, as well as 70 additional international destinations through its various alliances.
The Chilean company and its affiliates have a leading position in their respective domestic markets of Chile and Peru as well as an important presence in the Argentine domestic market and has completed its first year of operations in the domestic market of Ecuador.
Currently, Lan Airlines and its affiliates operate one of the most modern fleets in the world, with 86 passenger aircraft, and its cargo subsidiary, LAN CARGO and its respective cargo affiliates, have a fleet of 11 dedicated freighters. The company recently completed its short haul fleet renovation process by acquiring new aircraft from the Airbus A320 family, enabling Lan to improve its efficiency and to reduce significantly its CO2 emissions. The fleet renovation is part of the company's commitment to the protection of the environment.
Lan is one of the few Investment Grade airlines in the world (BBB).
Following the announcement of the operation Lan Airlines shares rose in Santiago trading, heading for the longest winning streak in five years. Latam’s biggest carrier by market value climbed 1.8% to a record 11,450 Chilean pesos, advancing for a tenth straight session.