LATAM Airlines, the leading airline in Brazil by market share, is considering expanding its fleet with the potential purchase of up to 30 aircraft from Brazilian manufacturer Embraer. This move aligns with the carrier’s strategy to grow its operations in Latin America’s largest economy.
Expanding Fleet Amid Delivery Delays
As LATAM Airlines looks to expand its fleet, it faces challenges due to extended delivery times for narrowbody aircraft from global manufacturers. This has prompted the airline to explore alternatives, including adding smaller aircraft to its fleet. LATAM’s Brazilian unit is particularly interested in Embraer’s E2 series or Airbus’ A220, both of which are competitive in the regional segment for up-to-150-seat aircraft.
Government Support and Industry Impact
The Brazilian government has long advocated for local carriers to purchase Embraer aircraft to bolster regional aviation and strengthen the domestic aerospace industry. Although the government is keen on supporting this potential deal, it emphasizes that any financial assistance would not come with mandatory conditions to purchase Embraer planes, as this would undermine market freedom.
Strategic Discussions and Future Growth
Brazil’s Ports and Airports Minister, Silvio Costa Filho, revealed that LATAM Airlines’ CEO, Roberto Alvo, recently met with Brazilian President Luiz Inacio da Silva in Chile to discuss the airline’s growth strategy. The discussions included LATAM’s plans to expand by more than 10% over the next three years, which may involve acquiring around 30 Embraer jets.