LAN CARGO accelerates growth plans and incorporates 5 Boeing aircraft
London, November 22nd, 2010.
Due to the increase in the demand for air cargo transportation resulting from the strong economic recovery of the markets in which the Company operates, LAN CARGO – the main airfreight operator of the region – decided to accelerate its growth plan, by incorporating three leased Boeing 767-300F: the first at the beginning of this month, the second during December and the third in January 2011. The Company also announced an agreement for the option to purchase a new Boeing 777F. This aircraft is expected to join the LAN CARGO fleet during the fourth quarter of 2012.
By the end of 2012, the Company and its affiliates ABSA, LANCO and MAS AIR will have a fleet of 10 Boeing 767-300F, 4 Boeing 777F, and 2 Boeing 767 that are under sublease to a third party. This growth will reinforce the expansion plans of the companies and will increase connectivity between strategic destinations of the region and the world on board flights operated by LAN CARGO and its affiliates.
MAS AIR–an affiliate of LAN CARGO in Mexico will increase frequencies between the United States and Mexico in addition to expanding routes between points in Mexico and points in South America. On the other hand, ABSA – the affiliate of the company in Brazil – recently initiated the new route between Miami and Salvador de Bahia, as well as a route to Cabo Frio in the state of Rio de Janeiro.
As Cristián Ureta, General Manager of LAN CARGO affirmed:
“The accelerated delivery of these aircrafts is the result of the strong growth and the company’s ability to quickly react to such market demands. We are very optimistic about the results and prospects of the business. The addition of these aircrafts will allow for an increase in capacity and connectivity, as well as a further consolidation of the network of LAN CARGO and its affiliates.”
The company will continue supporting the development of the cargo business within the region by fulfilling the needs of customers offering the highest standards of reliability, efficiency and punctuality. The Boeing 767-300F aircraft will increase the freight capacity by approximately 15% for the 2011 calendar year. On the other hand, the incorporation of the two new Boeing 777F during the second half of 2012 will expand even further the LAN CARGO network beyond the region, as these are the most efficient and modern cargo planes of their kind in the world, including the most advanced technology of the industry.
Ureta also stated: “This purchase confirms the growth strategy of LAN CARGO, expanding coverage and increasing connectivity to add value to the customers business. Furthermore, the fuel efficient Boeing 777F aircraft will result in a more efficient and sustainable long term operation”.
Results of the third quarter and freight business.
The consolidated income of LAN's freight operations reached US$ 910.6 million in September of this year, an increase of 48.4% compared to the same period of 2009. This growth was mainly due to the increase in freight