Airbus orders keep rolling in

TAM - Linhas Areas confirmed its intention to acquire 20 Airbus single-aisle A318 aircraft at a ceremony held today at the Paris Air Show. The airline also announced a Memorandum of Understanding for the purchase of up to one-hundred 108-seat ERJ 190-200 aircraft.

TAM's A3l8s will seat 120 passengers in a single class. The carrier will operate the A318s on Brazilian domestic routes, gradually replacing its F100 fleet which currently totals more than 50 units

Airbus' largest single customer in Latin America. TAM already operates seven long-range widebody twin A330-200s on international routes from Brazil to the USA and Europe as well as six A319s on its shuttle system between Sao Paulo and Rio do Janeiro, and twelve A320s on its domestic network serving main Brazilian cities.

"Our selection of the A318 will ease operational planning for TAM, thanks to the aircraft's full flight commonality with the A319, A320 and A330 which we already operate," said Cmte Rolim Adolfo Amaro Chairman of the TAM Group.

"We are very proud that TAM, our largest customer in Latin America, is confirming its confidence in our products for the third time since it first became a launch customer for the A330-200 in October 1996," said Chief Executive Officer of Airbus Noel Forgeard

TAM will eventually operate a fleet of over 150 Airbus aircraft, the largest in Latin America and will thus benefit from the full operational commonality that exists between the A320 and A330 Families.

The choice of both A318s and Embraer 190-200s surprised some analysts, since the two aircraft are of much the same size and can be considered as competitors, but Amaro said the decision to order two contrasting aircraft was because of operating differences, in particular the different nature of local runways in Brazil.

The Embraer deal foresees a minimum of 25 firm aircraft and provides flexibility to convert to other models and versions of Embraer's new 170/190 jet family. The total amount of the sale is to range from US$ 750 million to US$3 billion and deliveries shall start in 2004.

This deal reflects the consolidation of the regional market that both TAM and Embraer - beginning with the Bandeirante turboprop twin - envisaged in the 70s. "It is truly satisfying the opportunity to supply TAM with Embraer aircraft for this is an airline everyone recognises as an efficient and customer-oriented one, which is one of Embraer's values" said the President and CEO for Embraer Mauricio Botelho.

Up to May 31, Embraer has logged 120 firm orders for its latest family of aircraft, with options for a further 205 aircraft. Rollout is scheduled for the fourth quarter of the current year and the first aircraft is to be delivered in the second half of year 2002, just 38 months after the program go-ahead.

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