Category Archives: LATAM Airlines Group

LATAM Airlines takes delivery of the first Airbus A320neo in South America

First Airbus A320neo for South America, delivered on August 29, 2016

Airbus issued this statement:

LATAM Airlines Group took delivery of its first Airbus A320neo – showcasing its white, indigo and coral livery and powered by Pratt & Whitney Pure Power PW1100-JM engines – on Monday, August 29, 2016 at Airbus headquarters in Toulouse.

LATAM Airlines Brasil will become the first airline in North and South America, and the fifth operator in the world, to operate the ultra-fuel efficient aircraft type.

Executives from LATAM and Airbus attended a delivery ceremony, which also marked the delivery of LATAM’s fourth A350 XWB — the first with the airline group’s new brand livery. LATAM was also the Americas’ first A350 XWB operator.

The A320 is configured in a 174-seat layout with 18” wide seats and equipped with the innovative Space-Flex cabin configuration. LATAM was the first in Latin America to order the A320neo in 2011, shortly after the program was launched. The airline group has a total of 67 A320neo Family aircraft on order.

Initially, LATAM plans to fly its first A320neo on Brazilian domestic routes to Brasília, Belo Horizonte, Campo Grande, Curitiba, Florianópolis, Porto Alegre, Recife, Rio de Janeiro (Galeão) and São Paulo (Guarulhos).

In November, LATAM will begin to fly regional routes throughout South America. The second LATAM A320neo, to be delivered later this year, is also expected to operate regional flights. The airline group has more than 250 Airbus aircraft in operation.

Copyright Photo: LATAM Airlines (Brazil) Airbus A320-271N WL F-WWBV (PT-TMN) (msn 7126) (first A320neo) XFW (Gerd Beilfuss). Image: 934622.

AG Read the Real WAN

Advertisements

LAN and TAM to operate as LATAM with a new livery

LAN-TAM Tails

LAN Airlines (Santiago) and TAM Linhas Aereas (Sao Paulo) (LATAM Airlines Group) have just announced it will move towards one brand – LATAM. The makeover will involve a new livery for both airlines.

LATAM logo (LRW)

The airline announced this new look with the video above and these short statements:

TAM and LAN built a story in common and left behind a legacy. Both succeeded in their markets and opened themselves to the world, bringing developments to the whole region. For years, they were recognised for their punctuality, services, and network. This allowed us to gain our customers’ preference and to take part in their stories.

Now, we begin together a whole new chapter, which starts off with a brand that will take our best to the entire world. Our new identity represents the strength of a region that never stops moving, a pioneer and contemporary spirit, which inspires us to take Latin America to the world and to bring the world to Latin America.

The group describes the new logo above:

Our symbol adopts an ascendant form, which represents our strength, dynamics, and will to always go further. It takes shape through the harmony between different elements, since we were born exactly from the beauty of diversity.

On the colors:

Our colours, Indigo and Coral, represent our complementary and unique way of being: elegant on the outside, warm on the inside. Our secondary colours contribute to making our expression more diverse, without falling into stereotypes, and symbolising a region that is born from and that stands out for its rich diversity.

More news from our South American partner ModoCharlie:

“LATAM Airlines Group presents today LATAM, the new brand under which the main airline group in South America will progressively move on to become a single airline in the near future. Its website will be, properly named Latam.com

The announcement and its implementation plan are presented after being postponed several times since the last quarter of 2014. Such postponings fed industry expectations and helped spread rumors on what the new airline name and corporate image would be. Months ago, a semi-official statement was made public to reveal that the unified name would be a new one, thus discarding both LAN and TAM. Rumors on what the final choice would be snowballed ever since.

The announcement, which was not expected until the end of 2015 or the first quarter of 2016, does not produce many immediate effects aside of the public availability of an informational website hosted under the new airline name’s domain name, which should become in the future the transactional website for the unified airline. The first unified experiences for passengers are expected on April 2016, with the presentation of the first aircraft with the new paint schemes, names and logos.”

Read more on ModoCharlie: CLICK HERE

Later the group issued this statement:

  • The new brand represents the creation of the largest airline group in Latin America and one of the largest in the world.
  • “Connecting LATAM to the world, and bringing the world to LATAM. The airline group has grown up alongside each country in the region and has consolidated to offer clients the best network of connections and most modern fleet in Latin America. The passenger experience will improve with access to a single product and service within one network, more powerful online presence and integrated channels of communication, in addition to faster development of innovation and technology in the countries where the Group operates. LATAM will be a brand that builds a culture that is dedicated to taking care of its clients,” said Enrique Cueto , CEO of LATAM Airlines Group.
  • The choice of the name LATAM, part of the consolidation of LAN and TAM, is the result of an extensive study conducted in 10 countries following the association of both airlines and their affiliates.
  • LATAM Airlines Group is currently working on the gradual roll-out of the new corporate brand image over the next three years for airports, aircraft, commercial offices, web pages, and uniforms. The first changes will be visible starting in the first half of 2016 with specific dates to be announced in a timely manner.

After an extensive integration process following the association of LAN Airlines and TAM Airlines – during which the Group made great advances in achieving synergies for internal processes, network optimization, and fleet restructuring and modernization – LATAM Airlines Group has decided to adopt a single name and identity and announces that the new brand for the largest airline group in Latin America and its affiliates will be LATAM. The new LATAM branded airline group will unite all the passenger and cargo airlines for LATAM Airlines Group: LAN Airlines and its affiliates in Peru , Argentina , Colombia and Ecuador ; in addition to TAM Linhas Aereas S.A., and its subsidiary TAM Air Transport Mercosur S.A. (TAM Airlines ( Paraguay ), and the cargo carriers comprised of LAN CARGO , LAN CARGO Colombia, ABSA (TAM Cargo) and Mas Air.

The decision to create a new brand is a historic milestone in the airline industry not only because this is the first time an airline group has chosen to consolidate under a single brand, but because this is the first time a Latin America based airline group aspires to become one of the best in the world.

For that reason, the new brand will incorporate the most valued strengths and characteristics of both LAN and TAM, in addition to the important histories of both carriers, 86 and 39 years respectively, during which they became part of the history of the region by contributing to its growth, development and increased connectivity.

“Out of all of the options that we were considering, the name LATAM always seemed to us to be the most natural evolution of both the LAN and TAM brands, but a period of mutual understanding and maturation was necessary to make the decision. We knew that having a single brand was essential to consolidate the connection between LAN and TAM, and the name LATAM creates a strong identity for the airlines that form the largest airline group in Latin America. The new brand is born from the desire to capture the best of both identities and legacies and consolidate them to create an even stronger one that preserves the essence of each brand – an essence that is truly Latin American,” said Mauricio Amaro , President of the Board of Directors, LATAM Airlines Group.

“With LATAM we will continue on the path of leadership that LAN and TAM started in parallel, working closely together over the past three years to implement an ambitious agenda of innovative projects for our passengers to have a better experience with us before, during and after their flight. The passenger experience will improve with access to a single product and service within one network, more powerful online presence and integrated channels of communication, in addition to faster development of innovation and technology in the countries where the Group operates. LATAM will increase optimization of our fleet, provide easier access for passengers and clients to the best network of destinations in the region while offering a new in-flight experience, updates in service and in-flight entertainment, and innovative technology that gives passengers more control over their travel experience. Our passengers have high expectations and we want to offer them service that meets those expectations. LATAM will be a brand that builds a culture that is dedicated to taking care of its clients,” said Enrique Cueto , CEO of LATAM Airlines Group.

Cueto went on to explain in his own words the choice of the name LATAM: “LATAM Airlines Group was created by two large Latin American companies that started from zero and prospered thanks to their shared passion for flying, vision, dedication and innovation. Both companies and their respective affiliates conquered their markets and connected them with the world, promoting prosperity in the region and becoming known for their on-time performance, service and networks that won them the preference of their clients and become a part of their history. LATAM Airlines Group created a unique partnership in the industry that resulted in the largest airline group in the region. That is why we chose the name LATAM, because it honors who we were and who we want to continue to be, working together with our affiliates to be the ambassadors of a Latin America that grows and prospers, loyal to its natural and human roots – a region that never stops moving.”

The new LATAM logo

When describing the new logo, Jerome Cadier , VP of Marketing for LATAM Airlines Group said, “The logo was inspired by the identity and heritage of the region, incorporating the best of LAN and TAM. For this reason, we selected indigo and coral as the main colors for LATAM. The first represents the best of both worlds as it falls between red and blue which are the main brand colors for TAM and LAN. And the second, symbolizes energy and passion, essential attributes of the new brand. These two colors are supported by secondary colors that bring to life the diversity that is found in Latin America .”

“The implementation of rebranding in our industry is a gradual process and requires a long period of development. It will require a lot of time and effort, but as we work on the implementation of the new brand, we will continue to work in parallel to unify the in-flight experience offered by the LATAM Airlines Group airlines,” explained Cadier.

LATAM Airlines Group is currently working on the new corporate brand, a process that will take approximately three years to complete and will begin to be visible in the first half of 2016 with a gradual roll-out for airports, aircraft, commercial offices, web pages, and uniforms. Some of these change are already visible and can be observed principally in the in flight experience with new redesigned aircraft cabins, the new VIP lounges in Sao Paulo and Santiago – the largest in the region – that are open to the public and form part of the best network of lounges for frequent flyers in the region as well as digital platforms like the option to access onboard entertainment via mobile devices.

The LATAM Airlines Group carriers will be consolidated with the objective of offering unified service in alignment with the new brand. These changes will be announced to passengers and clients in a timely manner.

The Frequent Flyer Programs for LAN, TAM and its affiliates will continue making improvements to the existing programs with any changes also communicated in a timely manner.

LATAM: Consolidating Leadership in Latin America

After the association of LAN and TAM, the Group consolidated its operations in seven domestic markets in the region as well as regional networks within South America , international flights and cargo operations.

Together, both airlines have continued to operate as pioneers in the aviation industry with important achievements such as the unification of their network of passenger and cargo destinations and the renewal of their fleets, incorporating some of the most modern and efficient aircraft in the industry. LAN was the first airline to take delivery of the Boeing 787 in the Americas and TAM will be the delivery client for the Americas for the Airbus A350-900 XWB.

In addition, both companies have unified the interior design of aircraft cabins and onboard service. For the past seven consecutive years, LAN and TAM have alternated between first and second place in the Skytrax World Airlines Survey “Best Airlines in South America ” award category, considered to be one of the leading authorities for levels of satisfaction for the global airline industry.

Both airlines have made investing in a sustainable operation a priority which resulted in LATAM Airlines Group becoming the first airline group in the Americas to join the Dow Jones Sustainability index in 2014.

Choosing the name LATAM

Throughout the integration process the importance of a single brand for the Group was clear. The process through which the brand was defined consisted of several stages where all possible brand scenarios were reviewed. For this process, LATAM Airlines Group hired the brand consultant Interbrand to conduct a study in 10 countries, five of them where LATAM Airlines Group has domestic passenger operations in addition to important long-haul destinations including Brazil , Chile , Peru , Argentina , Colombia, the United States , Spain , England , France and Italy. The study also incorporated input from partners and the needs of clients across the markets where the Group operates, all collected in a thorough study that resulted in the creation of the new value proposition.

Among the various options, the name LATAM always stood out as the best choice for a variety of reasons:

  • The best option to, from and within Latin America : LAN, TAM and their respective affiliates have a complimentary network and fleet which presents one of the largest advantages for consolidating under a single brand.
  • LATAM is the group of airlines with the largest presence in the region with more than 1,500 flights per day, domestic passenger operations in seven countries, more than 140 passenger destinations in 24 countries with daily flights to Europe , the United States , Australia , the Caribbean and 144 cargo destinations in 26 countries.
  • No other airline group has as powerful a presence in the region as LATAM. The LATAM brand will maintain and strengthen the leadership in connectivity to and from the region for passengers as well as cargo.
  • A single travel experience with world class standards: One of the objectives of the Group is to provide a single in-flight travel experience with a world class standard of service for passengers that reflects the best that Latin America has to offer and is identified with a single brand name.
  • Greater Efficiencies: LATAM Airlines Group is currently one of the 12 largest passenger and cargo airlines in the world. In the three years since the association of LAN and TAM important synergies have been achieved across different areas of the business and the transition to a single brand like LATAM will further facilitate the consolidation of advantages and benefits for customers, employees and shareholders and move the group towards the goal of being among the top three airlines in the world.
  • A new culture with the best of both worlds: Before the association, LAN and TAM shared a long history and several similarities in their corporate vision in addition to a great workforce. LATAM Airlines Group has a robust team of 53,000 people around the world dedicated and passionate about achieving the goal of being one of the top three airlines in the world.

LAN-TAM History: CLICK HERE

LAN Airlines (Chile) aircraft slide show: AG Airline Slide Show

TAM Airlines aircraft slide show: AG Airline Slide Show

AG Ad - Captain's Log 5.2015 (LRW)

TAM to reduce its domestic operations in Brazil

LATAM Airlines Group S.A. and TAM S.A. (TAM Linhas Aereas) (Sao Paulo), announced that TAM will adjust its domestic network in Brazil. The group issued this statement:

LATAM Airlines Group logo

In order to allow TAM Airlines to remain committed with its long term sustainable development and growth plans for Brazil, the Company has decided to implement an adjustment to its domestic network at this time.

Given the impact of the challenging economic scenario in the country, caused by an increase in inflation and an appreciation of the U.S. dollar versus the Brazilian real, resulting in a slowdown in the airline industry, TAM is now implementing a gradual reduction of its domestic operations in Brazil of approximately 8% to 10%. As a result, the company has revised its capacity growth (ASK) guidance for this year for the domestic market in Brazil from 0% growth to a contraction of 2 to 4% as compared to 2014.

TAM has been working to adopt several measures to limit the impact of this adjustment on its employees. Nonetheless, the Company estimates it will reduce its staff by less than 2%, considering its normal turnover. Given the Company’s mid-term growth plans, this adjustment will not impact flight crew personnel. TAM will provide support to the affected employees with an outplacement program.

In order to guarantee the best service to its passengers, TAM will continue to serve all domestic destinations that it currently operates.

The Brazilian airline industry has suffered from declining demand, according to National Civil Aviation Agency (ANAC) data. Furthermore, data from the Market Readout of the Brazilian Central Bank released on July 10 indicates that the market projects a further decline of the Brazilian GDP, in 2015, with estimates revised down from a contraction of 1.3% to a 1.5% decline. They also estimate that inflation should end the year at over 9%, while the U.S. dollar is expected to continue to strengthen against the Brazilian real.

“TAM is taking this measure to face the difficult economic scenario of the country. It is necessary to make adjustments to our network while maintaining the connectivity we offer our passengers, and strengthening even further the Company’s competiveness in Brazil ”, said Claudia Sender, CEO of TAM S.A.

“We continue to believe in the country’s recovery and this adjustment in no way affects the Company’s long-term strategy, which include the renewal of the fleet, the feasibility study for the Northeastern hub and the continuous strengthening of our hubs in Brasília and São Paulo/Guarulhos”, she added.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Airbus A321-231 PT-MXM (msn 5987) with Sharklets departs from the Sao Paulo (Guarulhos) hub.

TAM aircraft slide show: AG Airline Slide Show

AG Full screen views

 

LAN Airlines takes delivery of its first Boeing 787-9 Dreamliner

787-9 ILF_LAN #259-ZB224

Boeing (Chicago, Seattle and Charleston) and LAN Airlines (Chile) (Santiago) (LATAM Airlines Group) yesterday (February 5) celebrated the delivery of the airline’s first 787-9 Dreamliner. LATAM Airlines Group is leasing the new airplane from Amsterdam-based lessor AerCap.

LATAM Airlines Group will become Latin America’s first operator of both the 787-8 and 787-9 variants of the Dreamliner family when the airline group launches 787-9 services on South American routes in April.

With this delivery, LATAM Airlines Group will have 11 787s in its fleet, the most in Latin America. The company is building a fleet of 32 787 Dreamliners, including 10 787-9s, over the next several years.

The 787-9 complements and extends the 787 family. With the fuselage stretched by 20 feet (6 meters) over the 787-8, the 787-9 will fly up to 40 more passengers an additional 450 nautical miles (830 kilometers) with the same exceptional environmental performance – 20 percent less fuel use and 20 percent fewer emissions than the airplanes it replaces.

The 787-9 leverages the visionary design of the 787-8, offering passenger-pleasing features such as large windows, large stow bins, modern LED lighting, higher humidity, a lower cabin altitude, cleaner air and a smoother ride.

Fifty-eight customers from around the world have ordered more than 1,070 787s, with more than 200 airplanes delivered.

Photo: Boeing. Boeing 787-9 CC-BGA (msn 35317) departs from a cloudy Paine Field near Everett, WA.

LAN Airlines (Chile) aircraft slide show:

AG Million Views

 

LAN Airlines continues to expand Boeing 787 operations

LAN Airlines (Santiago) continues to expand its 247-seat Boeing 787 operations. As previously reported, daily Santiago-Miami service was inaugurated on August 9 as well as weekly 787 flights to Cancun and Punta Cana also on August 9.

Santiago-Mexico City 787 service will start now on December 11 (delayed from November 15) on alternating days.

Santiago-Sao Paulo (Guarulhos) flights start on October 1 (three days a week) and daily starting in November).

Finally daily Santiago-Los Angeles service starts on October 1.

The company continues to operate the 787 to Buenos Aires, Madrid and Frankfurt as well as New York (JFK).

In financial news, the LATAM Airlines Group reported a net loss of $58.9 million for the second quarter, reduced from a net loss of $329.8 million in the same quarter a year ago. According to the group, “results this quarter were negatively affected by reduced passenger and cargo demand during the FIFA World Cup soccer tournament held in Brazil, as well as by very week seed exports in the cargo business.”

Read the full report: CLICK HERE

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 787-8 CC-BBB (msn 38466) taxies at Paine Field near Everett before the hand over to the carrier.

LAN Airlines (Chile): AG Slide Show

 

LATAM Airlines Group reports first quarter net income of $80.7 million, will phase out its Airbus A330s, A340s, Boeing 737s and Bombardier Q400s

LATAM Airlines Group (LAN Airlines and TAM Airlines) (Santiago) reported operating income of $146.7 million (US) for first quarter 2014 excluding non-recurring costs related to fleet restructuring. The increase of 28.5% as compared to the first quarter 2013 was driven by strong improvements in the results of LATAM’s passenger operations in most markets, especially in the Brazilian domestic operations, offset by the 18.5% depreciation of the Brazilian real over this period as well as by weaker results in the cargo business. Operating margin excluding fleet restructuring costs reached 4.6%, an increase of 1.2 points compared to 3.4% in 2013.

LATAM Airlines Group’s net income reached $80.7 million (US)  for first quarter 2014, excluding non-recurring costs related to fleet restructuring, compared to net income of $42.7 million (US) for the same period 2013.

The group further stated:

Having concluded a thorough review of its post-merger fleet plan and fleet requirements, and the changes in the competitive environment, the Company is undertaking a broad fleet restructuring plan with the aim of reducing the number of models operated, phasing out less efficient models and allocating aircraft best suited to each one of its markets. As a result, the Company expects to redeliver a significant number of aircraft between 2013 and 2016, and to fully phase out its Airbus A330s, A340s, Boeing 737s and Q400s. During the first quarter of 2014, LATAM has provided for estimated penalties related to anticipated redeliveries and other redelivery expenses expected to be incurred as a result of this process, recognizing non-recurring costs of $147 million (US). Of this total amount, $34 million(US) are recorded as aircraft maintenance operating expenses and $112 million (US) are recognized as Other Non-Operating Costs.

During the first quarter of 2014, LATAM continues to rationalize capacity in both passenger and cargo operations. As a result, passenger ASKs declined by 4.3% and cargo ATKs declined by 6.6% as compared to the first quarter of 2013. In the passenger markets, capacity cuts were mainly driven by reductions on international routes, which decreased by 7.5% as compared to the same period in 2013, and the continued rationalization of our domestic Brazil operations. Load factors continue to increase in all markets, reaching record levels at 82.7%.

On March 31, 2014, TAM celebrated its official entrance into the oneworld alliance. This allows TAM to offer customers an improved network in regions that are most important to them, and represents a significant milestone for LATAM Airlines Group as it continues to develop its international connectivity.

Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. TAM is phasing out its Airbus A330s and its A340s as the group concentrates around its Boeing 767/777/787 fleet for its long-range flights. Airbus A340-541 PT-MSN (msn 445) in the 1999 color scheme arrives back at TAM’s Sao Paulo (Guarulhos) hub.

LAN-TAM Tails

LAN Airlines (Chile): AG Slide Show

TAM Airlines (TAM Linhas Aereas): AG Slide Show

LATAM Airlines Group’s 2013 operating profit increases by 605% to $643.9 million

LATAM Airlines Group (LAN Airlines and TAM Airlines) (Santiago) reported operating income of $234.9 million (US) for fourth quarter 2013, a 166% increase compared to the $88.3 million (US) operating income in fourth quarter 2012. Operating margin reached 6.9%, an increase of 4.4 points compared to 2.5% in 2012. This strong expansion in margins was driven by significant improvement in the financial results of the domestic Brazil operations and the rationalization of international passenger operations, as well as the continued progress of the integration process, synergy and efficiency initiatives.
During the fourth quarter of the year, and in line with the capacity cuts we had anticipated, we strongly decreased our total capacity as measured in ASKs by 4.5% as compared to the same period in 2012. This capacity rationalization was mainly a result of a strong decrease in capacity in our international network, which decreased by 6.5% as compared to the same period in 2012; and the continued rationalization of our domestic Brazil operations.
For full year 2013, LATAM reported operating income of $643.9 million (US), a 605% increase compared to the $91.4 million (US) in full year 2012 (pro forma). Operating margin reached 4.9% an increase of 4.2 points compared to 0.7% in 2012, in line with the guidance provided by the Company.

Read the full report: CLICK HERE

Top Copyright Photo: Alvaro Romero/AirlinersGallery.com. Airbus A320-233 CC-CQN (msn 3319) of Lan Airlines (Chile) arrives at Aeroparque (Jorge Newbery) (AEP) in downtown Buenos Aires.

LAN Airlines: AG Slide Show

TAM Airlines: AG Slide Show

Bottom Copyright Photo: Alvaro Romero/AirlinersGallery.com. Airbus A320-232 PR-MBH (msn 2904) taxies at Buenos Aires downtown airport, Aeroparque (Jorge Newbery).