LAN Airlines signed (21-Dec-2010) a firm order for 50 new eco-efficient Airbus A320 Family aircraft, making it the largest single airline order for Airbus in Latin America. Initially announced as an MoU at the Farnborough International Airshow in Jul-2010, the carrier’s request for incremental A320 Family aircraft is part of LAN’s growth strategy for Latin America, serving as new and replacement aircraft for both existing and new routes. LAN has also selected Sharklets for the A320 that start being delivered in 2013. As of today, LAN’s total Airbus orders exceed 150, with more than 60 aircraft in passenger operations today throughout Chile, Argentina, Peru and Ecuador. [more]
LAN firms up commitment to order 50 A320-family aircraft
You may also be interested in the following articles...
Qatar Airways buys 10% of oneworld's LATAM, to add to its 15% in IAG
Enter Qatar Airways. As Etihad Airways looks to bed down its investments in other airlines, Qatar is gradually expanding its airline investment portfolio. Qatar's 15% stake in IAG is now being followed with a 10% stake in LATAM for USD613 million – nearly 1.5 times Qatar's net profit of USD446 million, disclosed (for the first time) on the day prior to the LATAM equity announcement. It is a safe investment; LATAM group has a strong market position and its share price has remained strong even in the face of a brutal downturn in Latin American economies.
Qatar gives LATAM needed cash and a distant shareholder. Latin America is the smallest market by far for Gulf airlines, but while currently in the economic doldrums, has a longer term potential for growth. It is also a key future market for US airlines, albeit very small on the Gulf airlines' networks. Qatar is spending nearly EUR2.5 billion on equity investments, still smaller than Etihad's but illustrating a willingness to acquire airline assets, for investment and strategic reasons. In this case the immediate strategic purpose for Qatar is less apparent.
Star Alliance's privately owned Avianca is also considering a strategic shareholder; that would mean five of Latin America's eight largest airline groups could have an airline investor from outside the region.
Copa Airlines: branching out with its new LCC Wingo to regain lost ground in Colombia
After years of fading into the backdrop of Colombia’s aviation market, Copa Airlines is making a bold move to make itself more competitive in the market place. Copa is reigniting competition after the company’s subsidiary Copa Colombia decided to cede domestic market share to other airlines a few years ago, in order to focus largely on international routes.
Copa’s weapon of choice is the creation of a new low cost airline Wingo, operated as a unit of Copa Colombia with a targeted market debut in Dec-2016. Wingo is designed as a lower frills point-to-point airline, operating four Boeing 737s in a single-class 142-seat configuration. It is a shift in strategy for the Copa Group, which operates a full service model leveraging traffic flows over its hub at Panama City Tocumen international airport.
Wingo is also adding service to Panama City’s Pacific international airport, (Panama City Pacifico), which results in Copa’s business units then operating to the city’s two airports. Copa’s commitment to serve Panama’s secondary airport reflects its new strategy to become more competitive in Colombia’s aviation market, and create a defensive shield against further LCC encroachment in the future.