LATAM Airlines Group has recently completed an order for 70 new aircraft for short-haul routes, from Airbus manufacture.
Those 70 new aircraft will be Airbus A320. The purchase order is in increments of the 42 aircraft that were previously ordered. The aircraft will be received between 2022 and 2027.
This information was revealed by LATAM Airlines’ CEO, Roberto Alvo, in an interview with Valora Analitik at the Annual Assembly of the International Air Transport Association (IATA) which took place this week at the Boston Plaza Park Hotel.
Once this order is received, Alvo mentioned that the group will have about 300 aircraft after replacing some old aircraft.
LATAM Airlines Group’s plans to strengthen the operations they had before the COVID-19 pandemic forcing them to reduce their staff of employees from 43,000 to 27,000.
According to the executive, one of the points that the group will work is the approval of the Joint Venture Agreement with Delta Airlines.
Alvo also pointed out that LATAM Airlines is working on the details to complete the financing of the reorganization plan in the United States, but clarified that, same as Avianca, the approval of this financing plan might represent a «considerable dilution» of the current shareholders.
Finally, LATAM Airlines’ CEO foresees that the company will be profitable again in 2023 after the Covid-19 crisis is over.
LATAM Airlines’ Plans in Its Main Subsidiaries
The group’s main subsidiaries in South America are Brazil, Chile, and Colombia.
In a recent press release, LATAM Airlines Group informed the strengthening of its network in South America and the resumption of the direct flight Santiago – Rio de Janeiro / Galeão with three weekly frequencies.
The flights will begin on November 1 and will be carried out on Airbus A320 aircraft with a capacity for more than 170 passengers in Economy and Premium Economy cabins.
Additionally, the group increased frequencies on the Santiago – São Paulo / Guarulhos route, projecting up to 18 weekly flights in December of this year, also operated by Airbus A320 aircraft.
In Colombia, Roberto Alvo revealed that before the COVID-19 pandemic, LATAM Airlines had 22% of the air market share. Now, that share has increased to 27%.
These numbers confirm LATAM Airlines as the second airline operator in Colombia, being the first one Avianca (37% share) and above Viva (21% share).
This process has already been approved by the Civil Aeronautics of Colombia, by the authority in Brazil and will be approved in the coming weeks by the authorities in Chile and the United States.
