Background on LATAM Airlines and Embraer Partnership
LATAM Airlines, the largest airline in Brazil by market share and headquartered in Chile, has recently placed a firm order for 24 E195-E2 jets from Embraer, with options to purchase an additional 50. This significant agreement marks a milestone for both companies as Embraer secures a long-awaited order for its second-generation aircraft in Brazil, while LATAM expands its fleet to complement its existing narrow-body Airbus and wide-body Boeing aircraft.
Why Embraer E195-E2 was chosen over Airbus A220
According to Jerome Cadier, CEO of LATAM Brasil, the airline considered purchasing smaller aircraft such as Embraer’s E2 and Airbus’ A220. The A220 would have offered more seats and greater range, placing it closer to the narrow-body aircraft LATAM already operates. However, the E2, with its smaller size and 136 seats, better suits LATAM’s needs for the Brazilian market. Cadier explained that when considering destinations, city distances, potential markets, and demand, the E2 fits well. He noted that if there were many large cities, the A220 might have been a more suitable choice.
Expansion Plans and Workforce
Following the new orders, LATAM plans to continue expanding its workforce and aims to match its hiring levels from 2024, which were around 1,000 employees, including pilots and cabin crew. The airline has invested 40 million reals (approximately $7.49 million) in a new heavy maintenance hangar at its Sao Carlos base to support this growth.
Key Actions and Ideas
- LATAM Airlines places a firm order for 24 E195-E2 jets from Embraer, with options for up to 50 more.
- This agreement is significant as Embraer secures a long-awaited order for its second-generation aircraft in Brazil.
- LATAM aims to expand its fleet and match 2024 hiring levels, targeting around 1,000 new employees.
- The airline has invested in a new heavy maintenance hangar at its Sao Carlos base to support growth.
- LATAM considered both Embraer’s E2 and Airbus’ A220 for their smaller aircraft needs, ultimately choosing the E2 for better alignment with the Brazilian market.
Key Questions and Answers
- Why did LATAM choose Embraer’s E195-E2 over Airbus’ A220? LATAM decided on the E195-E2 because it better fits their needs for the Brazilian market, considering factors like city distances, potential markets, and demand.
- How many new destinations will LATAM add in Brazil? LATAM expects to add between 25 and 30 new destinations in Brazil with the newly ordered jets.
- What is LATAM’s workforce expansion plan? LATAM aims to match its 2024 hiring levels, targeting approximately 1,000 new employees, including pilots and cabin crew.
- What investment has LATAM made to support its growth? LATAM has invested 40 million reals (around $7.49 million) in a new heavy maintenance hangar at its Sao Carlos base.
