LATAM AIRLINES GROUP REPORTS PRELIMINARY MONTHLY STATISTICS FOR APRIL 2013

May 13, 2013

Santiago, Chile, May 10, 2013– LATAM Airlines Group S.A. and its subsidiaries, (“LATAM Airlines Group” or “the Company”) (NYSE: LFL / IPSA: LAN / Bovespa: LATM11), the leading airline group in Latin America, today reported preliminary monthly traffic statistics for April 2013 compared to April 2012.
System passenger traffic decreased 1.1% as capacity rose 0.1%. As a result, the Company’s load factor for the month decreased 0.9 points to 77.0%. International passenger traffic accounted for approximately 53% of the month’s total passenger traffic.
Domestic passenger traffic in LATAM Airlines Group’s Spanish speaking operations (Chile, Argentina, Peru, Ecuador and Colombia) rose 12.3%, as capacity increased 16.0%. As a consequence, the domestic passenger load factor decreased 2.5 points to 74.6%.
Domestic passenger traffic in Brazil decreased 6.9%, as capacity decreased 11.7%. As a consequence, the domestic Brazil passenger load factor increased 3.8 points to 73.3%.
International passenger traffic decrease 0.6%, while capacity increased 5.0%. Accordingly, the international passenger load factor for the month decreased 4.5 points to 80.2%. International traffic includes international operations of both LAN and TAM on regional and long haul routes.
Cargo traffic rose 10.0% as capacity increased 7.1%. As a consequence, the cargo load factor increased 1.6 points to 61.2%. The growth in cargo capacity is a result of an increased availability in the belly of passenger aircrafts. O aumento do tráfego de carga foi impulsionado principalmente pela demanda sazonal atrasada.

Airbus installs Rolls-Royce Trent XWB engines and Honeywell APU on A350 XWB MSN001

March 26, 2013

Airbus has installed on the first flight-test A350 XWB (MSN001) its two flight-ready Rolls-Royce Trent XWB engines and is also installing the new Honeywell HGT1700 auxiliary power unit (APU) at Airbus’ production facilities in Toulouse (France).

The new Trent engines were both received from UTC Aerospace Systems (formerly Goodrich) which had recently prepared the fully integrated powerplants prior to their installation on the aircraft’s pylons. Last month the Trent XWB received Engine Type Certification from EASA, confirming that the engine had fulfilled EASA’s airworthiness requirements for flight. The Trent XWB has already powered a series of test flights on Airbus’ A380 Flying Test Bed (FTB) aircraft since February 2012, demonstrating a high level of maturity.

In parallel to the mounting of the two Trent XWB engines in Toulouse, the A350 XWB is also this week being fitted with its new specially developed APU – the Honeywell HGT1700 which has greater power density and higher efficiency than the previous generation APUs.

With the installation of its engines and also the APU, the A350 XWB MSN001 becomes essentially a ‘completed’ aircraft. Following the ongoing ground tests, other preparations and also painting in the coming weeks, MSN001 will then be handed over to the Airbus Flight Test team to commence preparations for ground runs and maiden flight in the summer.

Lion Air orders 234 A320 Family aircraft

March 18, 2013

Indonesian low cost carrier becomes new Airbus customer with major order

Indonesia’s Lion Air has placed a firm order with Airbus for 234 A320 Family aircraft, comprising 109 A320neo, 65 A321neo and 60 A320ceo. The deal sees the carrier become a new customer for Airbus.

The order was finalised today at a special ceremony at the Elysée Palace in Paris in the presence of President François Hollande of France, who witnessed the signing of documents by Rusdi Kirana, Co-Founder and CEO of Lion Air Group and Fabrice Brégier, President & CEO, Airbus.

In a single class layout the A320 can seat up to 180 passengers, while the A321 can carry up to 236 with the latest cabin configuration options. Lion Air Group will use the aircraft to meet growth requirements on its expanding domestic and regional route network. The carrier will announce engine selections for the aircraft in the near future.

“The fuel-efficient A320 Family will enable Lion Air to achieve the lowest possible operating costs and continue to offer the most competitive fares in the Asian region,” said Rusdi Kirana, Co-Founder and CEO of Lion Air Group. “This landmark order will ensure that the Lion Air Group will continue its expansion with one of the most modern and advanced fleets in the world.”

“This announcement marks our first order from Lion Air – one of Asia’s fastest-growing and most successful low cost carriers,” said Fabrice Brégier, President & CEO, Airbus. “The news underscores the market-leading position of the A320 Family, which continues to attract new customers for both the current and new engine options. We very much look forward to welcoming Lion Air as a major new operator of Airbus aircraft.”

Offering the lowest operating costs in its class, the A320 Family is the world’s best-selling single-aisle product line. To date, some 9,400 aircraft have been ordered and more than 5.400 delivered to over 380 customers and operators worldwide. The A320ceo and A320neo share over 95 percent airframe commonality, enabling seamless operation of the various models in a single fleet.
Since taking to the skies in 2000, Jakarta-based Lion Air has become one of Asia’s fastest-growing airlines. Today the Group operates an extensive network covering over 70 destinations in Indonesia and South East Asia

IBERIA RECIBE HOY SU SEGUNDO AVIÓN DE LA FLOTA AIRBUS A330

February 28, 2013

La aeronave será bautizada con el nombre de Costa Rica, como homenaje de la compañía a uno de los países más bellos de América Latina.

Madrid, 28  de febrero de 2013

Iberia acaba de recibir esta mañana el segundo de los ocho Airbus A330-300 que tiene previsto recibir a lo largo de 2013 y primer trimestre de 2014.

Se trata de un avión bimotor, habilitado para realizar rutas transatlánticas, que Iberia destinará a sus rutas con Estados Unidos. La principal ventaja de este modelo de operación con aviones bimotores es la eficiencia, puesto que consumen en torno a un 15 por ciento menos de combustible que otros modelos de aviones cuatrimotores de similar capacidad, lo que se traduce en un considerable ahorro de costes. Este es el segundo de los aviones de esta flota que recibe la compañía; el primero de ellos, bautizado como Tikal en homenaje a los espectaculares restos arqueológicos mayas de Guatemala, se incorporó a la flota de Iberia el pasado 15 de febrero.

La incorporación de este avión, con matrícula EC-LUK, y al que la compañía ha bautizado con el nombre de Costa Rica, forma parte del plan de renovación de la flota de Iberia que tiene como objetivo disponer de aviones más modernos, con mejores prestaciones y más eficientes.

Wifi y conectividad GSM

Este nuevo avión está equipado con los nuevos interiores en las clases Business y Turista. Los clientes de Business podrán disfrutar, entre otras prestaciones, de butacas que se convierten en camas completamente planas de casi 2 metros, y con un diseño que les confiere mayor espacio, al estar insertadas en módulos aislados. Además, todos los clientes tienen acceso directo al pasillo, lo que evita molestias innecesarias.

Asimismo se ha renovado la cabina de Turista, incorporando nuevas butacas que integran un diseño moderno con una ergonomía mejorada, que otorga mayor comodidad y amplitud para los clientes.

El sistema de entretenimiento de ambas clases también se ha renovado completamente para que sea más intuitivo y fácil de utilizar. La pantalla –de 15,4 pulgadas, casi un 50 por ciento más que la actual en la clase Business y de 9 pulgadas en la clase Turista, la más grande del mercado-, es táctil y tiene una navegación similar a la de las tabletas. Cada mes, se incluirán más de 50 películas en varios idiomas, cerca de 80 opciones entre series de TV, documentales y programas, cerca de 200 opciones musicales y 15 juegos interactivos, entre otros.

Además, próximamente Iberia ofrecerá WIFI en estos aviones para que todos sus clientes puedan conectarse a Internet desde sus propios dispositivos. Además, la aerolínea ofrecerá la posibilidad de enviar y recibir mensajes SMS y datos desde el móvil, a través de conectividad GSM.

AVIANCA AND TACA CARRIED MORE THAN 2,100,000 PASSENGERS

February 25, 2013

In the first month of 2013, Avianca, Taca and subsidiaries transported 2,115,834 passengers, a 12.3% increase in passenger numbers compared to January 2012. The load factor was 83.5%.

During the month of January 2013, Avianca, Taca and subsidiaries carried 2,115,834 passengers; a 12.3% increase compared to January 2012 when 1,883,331 travelers were carried. The capacity, measured in ASKs (available seat kilometers) increased by 6.9% and the overall load factor (average aircraft occupancy on both domestic and international routes) was 83.5%.

Domestic markets of Colombia, Peru and Ecuador
In the first month of the year the airlines affiliated with the Holding transported within Colombia, Peru, and Ecuador, a total of 1,189,356 passengers, a 14.9% increase compared to January 2012 where 1,035,070 passengers were carried. Capacity in these markets through January rose by 16.5%. The load factor on domestic routes was 80.2%.

International Markets
In January Avianca, TACA and subsidiaries carried 926,478 passengers on international routes, a 9.2% increase compared to January 2012 when the figure reached 848,261 passengers. The capacity measured in ASK for the international routes was up 4.7% while the load factor was 84.3%.

Malaysia Airlines orders up to 36 ATR 72-600s

February 19, 2013

The aircraft will be operated by the regional subsidiaries Firefly and MASwings

ATR and the flag carrier Malaysia Airlines today signed a purchase agreement for 20 firm ATR 72-600s, plus options for 16 additional aircraft. The deal is valued at over US$ 840 million, including options. The signature of this new contract follows a Memorandum of Understanding announced by the airline in December 2012. With today’s signature, Malaysia Airlines brings to 42 the total of firm ATR 72s purchased since the initial purchase agreement in 2007. Malaysia Airlines currently has 22 ATR 72-500s, operated by booming business units Firefly (12) and MASwings (10).  The introduction of these aircraft, which are the first ATR -600s to be selected for the growing Malaysian and regional market, will reinforce Firefly’s and MASwings position on community markets and business routes and confirms Malaysia Airlines as a major operator of ATRs in Asia. Deliveries will start by mid 2013.

The arrival of these new ATR72-600s will enable Malaysia Airlines to further expand its regional offer, adding new routes and frequencies to its global network. The new ATR 72-600 delivers the latest innovations in terms of passenger comfort, with the award-winning Armonia cabin designed by Giugiaro and equipped with new slim line seats, larger overhead bins and appealing LED lighting.

Besides the 22 ATR 72-500s operated by Firefly and MASwings, Malaysia Airlines also has a fleet of over 100 medium and long-haul A330s, A380s, B737s, B747s and B777s.

Malaysia Airlines has just become a member of oneworld alliance, and operates flights to Asia, Australia/New Zealand, the Middle East, Europe and the US West coast.

Commenting on the deal, Ahmad Jauhari, Chief Executive Officer of Malaysia Airlines, declared: “We have been partnering with ATR for the last five years, and we are really satisfied with the outstanding performance and the commercial results that our ATR 72s provide to our growing community networks. The ATR aircraft are clearly playing an important role in the development of Malaysia Airlines, as they connect regional destinations and enable us to feed larger aircraft at our main hubs. The new aircraft will further improve the guest experience on our community airlines as they connect more and more people across Malaysia and the surrounding regions”.

Ignatius Ong, Chief Executive Officer of Firefly, declared: “Our exclusive ATR 72 fleet has allowed Firefly to develop a unique high frequency network out of Subang, Penang and Johor Baruh, which greatly benefits our Malaysian communities, as well as the rest of the population in the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)”.
Captain Dato’ Nawawi Awang, Chief Executive Officer of MASwings, said: “We are glad that MASwings’ fleet of ATR 72s can efficiently serve the Sabah and Sarawak (East Malaysian states), and the BIMP-EAGA (Brunei, Indonesia, Malaysia and Philippines East ASEAN Growth Area) communities and help to further enhance the tourism industry and the socio-economic development of the region”.

Filippo Bagnato, Chief Executive Officer of ATR, declared: “Malaysia Airlines is a really prestigious partner for ATR in Asia. We are honoured with the renewal of their confidence and we are pleased to further develop our relationship with the introduction of the many advantages of the ATR 72-600, our newest product. ATR aircraft are unrivalled in terms passenger comfort and environmental friendliness. We are delighted to be an active part of Malaysia Airlines’ development of the regional connectivity in Eastern and Western Malaysia. We are also very pleased to welcome Malaysia Airlines as one of our first operators to use our recently open Training Center for ATR -600 series aircraft in Singapore”.

SCAC appoints new President

January 29, 2013

Moscow – January 28 2013

On January 28, 2013 “Sukhoi Civil Aircraft” Company (SCAC) Board of Directors appointed the new President.

Mr Andrey Kalinovsky was named President of “Sukhoi Civil Aircraft” replacing Mr Vladimir Prisyazhnyuk.

Mr. Kalinovsky will take up his duties on February 1, 2013.

During the same Board of Directors’ meeting Mr Mikhail Pogosyan – President and Chairman of the Executive Board of United Aircraft Corporation (UAC) – was appointed SCAC Chairman of the Board replacing Mr. Igor Ozar. The new Chairman commences his duties immediately upon his election.

These new appointments to senior positions are associated with challenging goals set by the Company to boost the Sukhoi Superjet program and ensure the SSJ100 aircraft’s success.

Mr Kalinovsky was formally the General Director of Novosibirsk Aircraft Production Association (named after Chkalov NAPO, Subsidiary of Sukhoi) since July 2007. During this period he implemented the modernization and upgrade of the production facilities together with personnel advanced training at NAPO in order to comply with the international production standards.

He had assumed the role of First Vice President of Production with SCAC and Director of SCAC Komsomolsk-on-Amur Branch since May 2011.

Under Mr Kalinovsky’s direct management, the manufacturing of the SSJ100 components had been arranged in Novosibirsk (Russia) as well as the aircraft assembly line at SCAC Komsomolsk-on-Amur Branch.

LIAT becomes new ATR customer in the Caribbean region

January 17, 2013

Antigua & Barbuda’s carrier orders 3 ATR 42-600s to start replacement of former turboprops.
ATR aircraft once again proven to be the preferred option for inter-island operations worldwide

ATR and the Caribbean carrier Leeward Islands Air Transport Services (LIAT) today announced the signature of an agreement for the purchase of a total of three 48-seats ATR 42-600s. The deal also includes options for two 68-seat ATR 72-600, and is valued at over US$ 100 million. LIAT will take delivery of their very first ATR 42-600 in June 2013.

With the arrival of these aircraft from ATR, plus additional ATR -600s under discussion from leasing companies, LIAT will progressively replace its current fleet of former turboprop aircraft. The airline currently operates a fleet of 14 aircraft over its Caribbean network, which includes main hubs at Antigua, Barbados and Trinidad, and destinations –among others-, in Dominican Republic, Puerto Rico, St.Marteen, Guadeloupe, Dominica, Martinique St.Lucia and St.Vincent.

This deal demonstrates again that the ATR 42 and ATR 72 aircraft family is the preferred option for inter-island operations worldwide due to their unrivalled economic performance on shorter routes and their ability to operate into small, short airfields. Today, ATR aircraft are successfully operated in archipelagos like French Polynesia, the Philippines, Canary Islands, Cape Verde, Maldives and the Caribbean region, as well as in countries with important amount of inter-island operations, such as Indonesia and Malaysia. LIAT will benefit from the very low operating and maintenance costs of the new ATR -600 series aircraft.

Commenting on this new contract, Ian Brunton, Chief Executive Officer of LIAT, declared: “We are pleased to become a new member of the ATR family and to start operating aircraft which have largely proven their efficiency and performances on the type of routes we propose.  The aircraft of our modern fleet will feature the most advanced cabin interiors and standards of comfort, while being extremely respectful of the environment, a matter of considerable concern to us at LIAT”.

Filippo Bagnato, Chief Executive Officer of ATR, declared: “The ATR -600 series aircraft perfectly match the requirements of the airlines operating inter-island flights. Their outstanding performance and reliability on this type of routes clearly explains their success in recent years in the Caribbean region, where we have sold new ATR -600s to a number of airlines. We are honoured to see that LIAT, after a thorough and rigorous evaluation, has chosen to switch to ATR -600s and benefit from the many advantages of the most modern family of regional aircraft in the market”.

AVIANCA AND TACA ORDERS 15 ATR 72-600S

December 12, 2012

The deal with the major Latin American aviation group includes 15 options

European turboprop aircraft manufacturer ATR and Latin American aviation group AviancaTaca Holding are pleased to announce the signature of a major contract for the purchase of 15 ATR 72-600s, plus options for 15 additional aircraft. The deal, including the options, is valued at close to US$ 700 million. Avianca and Taca recently made its final choice after an exhaustive evaluation of all the competing alternatives, opting for the ATR 72-600 to provide the best overall solution. The deliveries of the firm aircraft will start in June 2013.

AviancaTaca  is one of the largest and fastest growing aviation groups in Latin America. It currently operates a combined fleet of more than 150 aircraft, the second largest fleet in Latin America. The group serves more than 100 destinations in Latin America, US, Canada, Caribbean region and Europe, and has 4 major hubs in Bogota, San Salvador, Lima and San José de Costa Rica.

With the introduction of their fleet of 15 brand new 72 seats ATR 72-600, AviancaTaca will progressively replace their Fokker 50s and ATR 42s currently in operation. Avianca will fly the new ATR 72-600s to destinations like Barrancabermeja, Florencia, Manizales, Neiva, Pasto, Popayán, Tumaco and Yopal, in Colombia. Taca will fly the aircraft to Guatemala city and Flores (Guatemala), Tegucigalpa, Roatán andSan Pedro Sula (Honduras), San Salvador (El Salvador), Managua (Nicaragua), and San José and Liberia (Costa Rica). The ATR 72-600s will also provide passengers with stylish cabin interior designs and the most modern standards of comfort.

Commenting on the deal, Mr Fabio Villegas Ramirez, Chief Executive Officer of AviancaTaca, declared: “With the introduction of these new 72-seat ATR 72-600s, we reemphasize our commitment to the connectivity within the regions in Colombia and Central America. The selected aircraft will enable us to increase our capacity in regional routes, further enhance our network and propose the highest standards of comfort to our passengers”.

Filippo Bagnato, Chief Executive Officer of ATR, declared: “This is indeed a major contract for ATR as we are signing with a well-reputed and leading-edge air transportation provider in the Americas. We are proud to be a part of the expansion of AviancaTaca. At the same time, we are pleased of renewing a longstanding relationship that dates back over 15 years with TACA Regional, and to further increase the presence of the new ATR 72-600s in the whole of Latin America. Our aircraft have experienced an outstanding success in this region in recent years due to their flexibility and low operating costs”.

ATR has some 150 aircraft currently flying with Latin American airlines’ liveries, plus some 50 additional aircraft to be delivered in the region. ATR is experiencing an outstanding success in Latin America. This success highlights the suitability of the ATR aircraft for the regional operations in a very dynamic market with still strong untapped potential.

AVIANCATACA HOLDING S.A. EARNS NET PROFIT OF USD 56.3 MILLION

November 21, 2012

This figure is 14.8% higher in comparison to the same period for the previous year

During the third quarter of 2012, AviancaTaca Holding S.A, (BVC: PFAVTA) reported operating income of US$1.1075 billion. This is equivalent to an increase of 8.1% with respect to the same period of 2011, removing the non-recurring revenue for expired tickets recorded in the third period of 2011.

Operating profit reached US$116.6 million. On the other hand, the EBITDAR (earnings before interest, tax, depreciation, amortization and airplane rental) recorded for the period was US$226.4 million.

Net profits for the third quarter of 2012 rose to USD 56.3 MILLION, 14.8% higher than the profit recorded for the same period in 2011.

Capacity measured in ASK (Available Seats per Kilometer) increased by 10.3% in the third quarter as a result of the growth and consolidation strategy of the four (4) connecting hubs (Bogotá, Lima, San Salvador and San José in Costa Rica). The company opened five (5) new routes during this period, along with additional flights to existing routes in South America.

Passenger traffic measured in RPK (Revenue Passenger Kilometer) rose 9.1% in the third quarter, whereas the load factor reached 81.8%. Cost per available seat kilometer, excluding fuel costs (CASK ex Fuel), declined by 6.0%.

During the third quarter, the company announced that it will be adopting the Avianca brand name for all of the group’s airlines, which will take effect during 2013. In the same manner, in compliance with its fleet renovation and modernization plan, five aircraft were incorporated into the fleet during the quarter: one (1) Airbus A330, two (2) Airbus A319, and two (2) Airbus A320.

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